Currency Conversion

July 20, 2006 6:40 AM

I'm going to the States on the weekend and I'm wondering what the best way is to convert Canadian dollars to American dollars? What option provides the best conversion rate for $300-500?
posted by jonshadow to Work & Money (14 answers total)

Always use your own bank.
Avoid the currency exchange near the border because they charge the most for service fees. But anyway, it's a bit of a non-issue now since the Canadian dollar is now quite strong against the US currency. It was hovering around 91 cents/US more recently.
posted by GoodJob! at 6:51 AM on July 20, 2006

Where will you be crossing the border? If you are coming over near Buffalo / Niagara Falls, convert your cash at one of the Casino's. I always suggest this as they have the best rates becuase they figure you are just going to turn around and give it back to them.
posted by punkrockrat at 7:13 AM on July 20, 2006

Take it out of the ATM in the States. I mean, that's how I converted my American dollars to Canadian.
posted by dame at 7:17 AM on July 20, 2006

Don't bother taking cash with you -- take a cash card and use a cash machine when you get there. Both the exchange rate and any service fees will be as good as you can get.
posted by jjg at 7:19 AM on July 20, 2006

Another, little used option, is using a Federal Reserve bank office where you can make exchanges. This is what I am planning to do when I head out to the UK. This method is not as convenient as an ATM.

Be aware that many credit cards charge fees when used outside of their region and some ATM charges apply for exchanges as well which bit me bad when I was in Japan. Find out what your banl's rules are about US currency exchange.
posted by jadepearl at 7:28 AM on July 20, 2006

I'm just going to agree with some of the above posters saying just use your ATM/debit card. Usually same/better exchange rate and no fee for the exchange.
posted by chrisroberts at 8:05 AM on July 20, 2006

And yes, some banks to charge a fee for the exchange, as jadepearl mentioned. Just check with your bank, but many times this exchange fee is the same or less than you would end up paying else where to get money exchanged.
posted by chrisroberts at 8:07 AM on July 20, 2006

Don't bother taking cash with you -- take a cash card and use a cash machine when you get there.

This is really what you should do. It's how I get money in Canada, it's how I got money in Germany, and it's really the way to go.
posted by oaf at 8:11 AM on July 20, 2006

My credit card charged a 1% transaction fee. Your bank may also charge fees for ATM use. For a small amount of money, the fees may be a wash. For $300-$500, it was worth it to me to use my credit card for convenience sake. (we are talking about $2-$3, after all).

The Canuck buck has been sliding relative to the greenback lately. You are not going to get anywhere near $0.91. My (US) credit union has been giving me rates closer to the $0.85-$0.86 range when cashing Canadian cheques. (last cashed one 7/11). Earlier this year I was getting rates closer to $0.88.
posted by crazycanuck at 8:56 AM on July 20, 2006

One exception to the plastic rule: if you are going to New York state and you are planning on travelling on the NYS thruway, you need at least $5 cash before you go. If possible, buy mixed US coin off a known traveler to the US. Canadian banks will not give you coin, and having coin is much faster in the toll booths. I was fortunate in that my dad is a hoarder so I could sponge off him.
posted by crazycanuck at 9:01 AM on July 20, 2006

I agree with the ATM recommendation. You basically get the day's exchange rate with very minimal fees. We've bought money at a currency exchange and gotten it from the ATM, and the ATM was a better deal for us.
posted by chimaera at 9:32 AM on July 20, 2006

If you are going to a destination that has a lot of Canadian tourists you will find lots of places accepting Canadian dollars at par - take some Canadian dollars with you!

The same applies the other way too, actually, though it is much harder to tell for sure.. Touristy businesses will often offer good exchange rates for their products.
posted by Chuckles at 9:40 AM on July 20, 2006

If you are going to use your debit card make sure to check that it is compatible with american cash machines. If it has the plus sign on the back I think it can be used with most major banks. I've had visitors in the past who have had problems with this.
posted by kechi at 11:12 AM on July 20, 2006

The problem with using your ATM card to withdraw money is that you'll get slammed with fees every time (because it's not your bank). If it bothers you to pay $1-4 every time you withdraw money, you might want to make a stop in at your bank before you go and get some US cash there. My bank (RBC) has never charged me a fee to get US money, although I had one of their US money accounts.

The other problem is that not every US ATM will accept every Canadian debit card. I can get money out of my RBC account at some ATMs and not others. I can directly pay with my debit card* at some stores and not others. I have never discovered any reason for this discrepancy.

*They don't call it interac here. Just say you want to use your debit card.

I've found my best exchange rate is through my credit card. They don't charge any fees for the conversion either.

Second best was always from my home branch of my bank, though then I had to carry large amounts of cash, which I hate.

Third best was from the ATM - the currency rate was the same as at the bank, but the fees for using the machine wiped out any advantage.
posted by joannemerriam at 11:31 AM on July 20, 2006