Yes, most banks exchange currency, but the process and rates vary widely
Most banks will exchange foreign currency for you, but they do not all do it the same way. Some branches handle it on the spot; others order it in advance and charge a fee. The exchange rate you get is almost never the mid-market rate you see online — banks buy and sell currency at a markup, and that markup is how they profit on the transaction.
The practical reality: if you need currency before a trip or after returning home, your bank can do it, but you should call ahead. Many branches keep only a small amount of common currencies (euros, Canadian dollars, British pounds) in the vault. Less common currencies may take three to seven business days to arrive, or your bank may not carry them at all.
Key Takeaways
- Call your bank before you go in — most branches do not keep large amounts of foreign currency on hand and may need to order it.
- The exchange rate at a bank is typically 2 to 5 percent worse than the mid-market rate because the bank adds a markup.
- Banks charge a flat fee, a percentage fee, or both, depending on the institution and the currency; ask what you will pay before you commit.
- You must be a customer of the bank to exchange currency at most institutions, though some allow non-customers for a higher fee.
- Online currency exchange services and airport exchanges often charge more than banks, but airport exchanges are faster if you are leaving today.
How banks set their exchange rates and what you actually pay
The mid-market rate is the rate banks use to trade currency with each other — it is the "real" rate you see on financial websites. Your bank does not give you that rate. Instead, it quotes you a retail rate, which includes a markup of 2 to 5 percent or more. That markup is the bank's profit on the transaction.
On top of the markup, most banks charge a separate fee. This might be a flat fee (say, $10 to $25 per transaction) or a percentage of the amount you are exchanging (often 1 to 3 percent). Some banks charge both. A few banks waive the fee for customers with premium accounts or high balances, so it is worth asking whether you may have access to.
Example: if the mid-market rate for euros is 1.10 USD per euro, your bank might quote you 1.05 USD per euro (a 4.5 percent markup) and charge you a $15 fee on top. On a $1,000 exchange, you would receive roughly 952 euros instead of 909 euros if you paid only the markup, or 894 euros if you factor in the fee. The difference adds up fast on larger amounts.
What to do before you go to the bank
Call your branch and ask whether they stock the currency you need. If they do, ask how much notice they need and whether they charge a fee. If they do not stock it, ask whether they can order it and how long it will take. Some banks can order currency within 24 hours; others take a week.
Ask for the exchange rate they will charge and the total fee — get both numbers so you can calculate what you will actually receive. Do not assume the rate quoted over the phone is locked in; rates move constantly, and the bank may quote you a different rate when you arrive. Ask whether the rate is may provide if you place an order in advance.
Bring your ID and your debit card or account information. Most banks require you to be a customer to exchange currency. If you are not a customer, some branches will still do it but will charge a higher fee or refuse altogether.
Ordering currency in advance versus exchanging on the spot
If your bank stocks the currency, you can usually exchange it the same day, though you may wait in line. If it does not stock it, you will need to order it. The bank will hold the currency for you once it arrives, usually for 30 days. You pay when you pick it up, not when you order.
Ordering in advance locks in the exchange rate at the time of order for some banks, but not all. Ask explicitly whether the rate is may provide or whether it will change by the time you pick up the currency. If the rate is not may provide and the currency moves against you, you may decide not to pick up the order — but you may forfeit the fee you paid to place it.
If you are leaving in a few days and your bank does not have the currency in stock, you have two choices: pay for expedited ordering (if available) or use an alternative like an airport exchange or online currency service. Airport exchanges are expensive but fast; online services are cheaper but take a few days to deliver.
Alternatives to bank currency exchange
Online currency exchange services like OFX, Wise, and XE allow you to lock in a rate online and receive currency by mail or pick it up at a partner location. These services often charge less than banks because they have lower overhead. However, they take three to five business days to deliver, so they do not work if you are leaving tomorrow.
Airport currency exchanges are open long hours and do not require advance notice, but they charge significantly more than banks — often 5 to 10 percent above the mid-market rate, plus a fee. Use them only if you have no other option and need currency immediately.
Credit unions sometimes offer better rates than banks on currency exchange, especially if you are a member. ATMs abroad often give you a better rate than any exchange service, though your bank may charge a foreign transaction fee. If you are staying abroad for more than a few days, withdrawing cash from an ATM is usually cheaper than exchanging currency before you leave.
What happens if you need currency after you return home
You can exchange leftover foreign currency back to dollars at your bank, but the rate will be worse than when you bought it — the bank marks it up again on the sell side. If you have only a small amount left (under $50), the fee may exceed the value of the currency, so it is not worth exchanging.
Keep the currency for your next trip if you think you will return to that country. If you will not, consider spending it before you leave or donating it to charity. Some charities accept foreign currency donations and use them for international programs.
Frequently Asked Questions
Do I need to be a customer of the bank to exchange currency?
Most banks require you to have an account with them. If you do not, some branches will exchange currency for a higher fee, while others will refuse. Call ahead to ask. Credit unions typically allow non-members to exchange currency but charge more.
What if my bank does not have the currency I need?
Ask whether they can order it and how long it will take. If ordering takes too long, use an online currency service like Wise or OFX, or exchange at the airport if you are leaving soon. Airport rates are high, but they are faster than waiting for a bank order.
Can I lock in an exchange rate before I travel?
Some banks may provide the rate when you order currency in advance; others do not. Ask your bank explicitly whether the rate is locked or whether it can change before you pick up the currency. Online services like Wise typically lock in the rate when you place the order.
Is it cheaper to exchange currency at the airport or at my bank?
Banks are almost always cheaper. Airport exchanges charge 5 to 10 percent more than banks and add a fee on top. Use the airport only if you have no time to visit your bank before you leave.
What should I do with leftover foreign currency when I return?
You can exchange it back at your bank, but the rate will be worse than when you bought it, and a small amount may not be worth the fee. Keep it for your next trip, spend it if you return soon, or donate it to charity.