Currency exchange?

Question

Can someone give me a bit of advice on getting the best pound for Czech koruna for our money - we are planning a long weekend in Prague and I am thing of taking about £100 worth of Koruna with me for emergency drinks on the way.. but what is the best way of getting any other money.. using my visa card in a ATM? travellers cheques? cash in Sterling and exchanging it? any advice apreciated

Answer 1

If you have several credit cards, check with your credit (debit) card issuers on the exchange rates and conversion fees they charge. I have several credit cards issued by U.S. banks. Some cards charge 2%, but most charge 3% conversion fee. BUT the credit card companies use VISA currency exchange rates that are usually way better than the rate you get in London or in Prague. The trouble with changing your Pounds for Czech Crowns (Koruny) is that the banks use a BUY and SELL rate with a nice spread between them and on top of that they will charge you exchange fees. VISA uses a single rate.
If you are planning on staying in Prague you need only a minimum amount of cash since major credit cards (VISA/MASTERCARD) are accepted almost everywhere. Outside of the capital you need to have hard cash in hand. Taking cash from an ATM is a fairly good way to get local currency--again, your bank might charge you 2or3 points, the ATM operator can add something like 1 pound per transaction, but the exchange rate will be superior to what you will get at an airport exchange. And finally, please forget about travellers checks. Both Czech banks and the vendors will rape you on the exchange rate and fees. Enjoy your trip to Prague! I love that place.

Answer 2

The cheapest way of getting currency is to use your debit card in an ATM when you arrive. There's always a few in the airport. If you have an account with Nationwide, there's no extra charge - you just get a commercial exchange rate.

The only problem is that ATMs tend to give you large notes so you arrive without a pfennig for the loo.

If you're worried about things going wrong, you can always take £50 or so in sterling with you. Wherever you go in the world, someone will change sterling - although not necessarily at a very generous rate.

Answer 3

i wouldnt use your card at an ATM because they usually charge you commission. Travellers cheques are the same. You can get them commission free this end, but when your abroad, they can charge upto 5% to cash in and if theres not many bureau de change, you havent got much choice! So i surgest you take the czech koruna notes and some sterling, just incase.

Answer 4

All ways of exchanging currency are expensive - that's why banks have nice marble floors!

Personally, I'd use an ATM card (but a debit one, not credit, so as to avoid the extra cash withdrawal fee) - because it's probably as cheap as any way and you can take money out as you need it.

The Post Office gives various guarantees on being able to exchange money back cost-free if you take too much, and charges 0% commission - but its spreads are bigger to make up for it. For instance, £200 will buy you CKr 7699 today - but at commercial rates (ie what the PO pays) you would have got CKr 8345, which means they're charging a mark-up of almost 8% (which puts the debit card charge in context). Most Bureaux de Change will charge 8-10%.

Best of all, use cash as little as possible as spending directly on your credit card will probably end up being the cheapest way of all.

Answer 5

ATMs are only free if you're with Nationwide (some other banks/bs may have caught on by now though)
The post office is good, they don't charge commission for buying or selling foreign money.

Answer 6

ATMs are convenient but expensive, they have a total charge of 4.3% on a debit card and even more on a credit card

buy the currency here with cash

Answer 7

i all ways use my debit
card at atm in malta last
year there were loads of
hsbc banks and they charged
me 2% so it is best to draw
big amounts a time rather
small every day

Answer 8

Don't use a bank, use somewhere that offers a fixed rate. I use First Rate FX.

Answer 9

exchange it via travel agencies in downtown Prague

banks are slightly more expensive then exhcange offices, but sometimes not