Best method for currency exchange - US

[creeper]

So, I will be travelling to the US for a "study" trip. I need to figure out the best way to manage my cash going to the US. There is a few options:

1. Exchange at bank for Dollars, but they charge a fee + don't always give the best rate.
2. Activate my credit card and place additional funds it. Use it as an ATM card in the US.

The question is, which one will be the least cost involved in terms of TRANSACTIONAL costs? Exchange rate costs is excluded as the Rand is fluctuating so much, neither of the options will allow me to save money on exchange rate. It will be purely speculation.

 

[Wyzak]

ATM

 

[Vegeta]

Swipe its free and the rate is good

 

[ebendl]

How long are you going?

I always take a couple of $100 cash (say 300 or 400) but luckily I can exchange through my work, so the rate is a little bit better. I always keep some dollars from the previous time as well.

Then I use my card. Rarely withdraw cash (the last three weeks I've been in the US, I didn't need to draw cash at all) - I just swipe everywhere. Sure, there's a transaction fee - FNB charges 2.75% of transaction value for currency conversion (purchases and withdrawals) and R24.50 + 1.60% of value of an ATM withdrawals. But the convenience of tracking where my money goes, carrying less cash and not changing my habits (I swipe my cheque card everywhere in SA - rarely use cash) is good enough for me.

The US in particular is well suited to credit cards (esp. VISA and American Express), so you'll rarely have a problem with paying for something.

One suggestion: get a backup credit card! Either a secondary card on your account, or a different account altogether. Somebody nicked my credit card details and started buying plane tickets in Dublin. I cancelled my card and will get the money back, but had to revert to using my cheque VISA card for the remainder of the trip (1 week). I considered getting a Virgin Money card before I left (MasterCard) but didn't have enough time.

 

[ebendl]

In terms of the exchange rate - you can try and "hedge" against it by buying dollars before hand (getting one of these travel cards usually allows you the convenience of a card but you put dollars on it) - but I've never saved doing something like this before. I just deal with the horrible exchange rates when I get there.

Especially if buy dollars now - remember, the R could strengthen again and then you'd lose out by buying dollars before hand. If you don't know currency trends well enough, then forget about the beating the exchange rate thing altogether (imho).

 

[creeper]

Thanks. I have two credit cards, so one will be a backup. Regarding exchange. The rand is too volatile to hedge. It can jump with 10% a day, thereof Im willing to take my chances via ATMs.

I'm getting an allowance, so I will have a bit of cash in dollars. The idea of swiping where ever i go seems like the best idea

 

[ABU]

In addition to swiping the Credit Card where possible, you could consider opening a Capitec account and depositing spare funds therein.
The International ATM withdrawal fee is R35, regardless of the amount you withdraw, compared to the R20-R40 +1,5% fee of most other banks.