Most banks will exchange currency, but many charge fees that make it expensive, and some require you to be a customer first
Your bank can exchange dollars for foreign currency or foreign currency for dollars, but the cost varies widely. Large national banks like Chase, Bank of America, and Wells Fargo all offer currency exchange, though they may charge a percentage fee (usually 1 to 3 percent) on top of the exchange rate itself. Some banks require you to order the currency in advance, especially for less common currencies. Credit unions sometimes offer better rates than big banks, and a few online banks have no exchange fees at all — but you need to check your specific institution's policy before you assume they do.
The real cost is not always obvious. Banks quote you an exchange rate that is already marked up from the real market rate, then add a separate fee on top. A bank might charge you 2 percent of the total transaction as a fee, plus give you an exchange rate that is 1 to 2 percent worse than what you would get elsewhere. That compounds quickly. If you are exchanging $1,000, a 3 percent total cost is $30 you would not pay at a competitor.
Key Takeaways
- Most banks exchange currency for customers, but the rate they offer includes a markup, and many charge an additional percentage fee on top.
- Large national banks typically charge 1 to 3 percent in fees, while credit unions and online banks may offer lower rates or no fees.
- You may need to order currency in advance, especially for less common currencies, and some banks require you to be a customer to exchange at all.
- Airport currency exchanges and hotel exchanges almost always charge much higher fees than banks, so avoid them unless you have no other option.
- ATMs in the destination country usually give you the best exchange rate and lowest total cost, even after the ATM fee.
What your bank charges and how to find out
Call your bank's customer service line or visit a branch and ask three things: Do they exchange currency? What is the fee, and is it a flat dollar amount or a percentage? What exchange rate will they give you? Write down the rate they quote, then compare it to the real market rate (available free on XE.com or OANDA). The difference between what they quote and the real rate, plus any stated fee, is your total cost.
Some banks charge a flat fee — say, $15 to exchange any amount. Others charge a percentage of the transaction. A few charge both. If your bank charges a percentage, the fee grows with the amount you exchange. A 2 percent fee on $500 is $10; on $5,000 it is $100. For small amounts, a flat fee may be cheaper. For large amounts, a percentage fee may be cheaper. Do the math before you commit.
If you are not yet a customer, ask whether you can exchange currency without opening an account. Many banks will not. If you are a customer, ask whether you get a better rate than non-customers. Some banks offer a small discount to account holders.
When you need to order currency in advance
Common currencies like euros, British pounds, Canadian dollars, and Japanese yen are usually in stock at bank branches. Less common currencies — Thai baht, South African rand, Polish zloty — may not be. If your bank does not have the currency on hand, they will order it from a currency supplier, which takes three to seven business days. Plan ahead if you are traveling to a country with a less common currency.
Some banks charge an extra fee for ordering currency, on top of the exchange fee. Others do not. Ask before you order. If the wait time is too long or the fee is too high, you have other options: you can withdraw cash from an ATM in the destination country, or you can use a currency exchange service like OFX or Wise, which specialize in moving money across borders and often charge less than banks.
Credit unions and online banks often have better rates
Credit unions are member-owned, not shareholder-owned, and many pass savings on to members. If you belong to a credit union, ask what they charge for currency exchange. Some credit unions charge no fee at all and give you a rate very close to the real market rate. Others charge a small percentage. The variation is large, so you have to ask your specific credit union.
Some online banks like Charles Schwab offer currency exchange with no fee and a rate very close to the market rate. But you have to be a customer, and you have to check their current policy — it can change. If you already bank online, it is worth a phone call to see what they offer.
Why ATMs in the destination country are often cheaper
When you land in another country and withdraw cash from an ATM, you pay two costs: the ATM operator's fee (usually $2 to $5) and your bank's foreign transaction fee (usually 1 to 3 percent). But the exchange rate you get is the real market rate, with no markup. For most trips, this is cheaper than exchanging currency at your bank before you leave.
Example: You need 1,000 euros. Your bank charges 2 percent to exchange dollars for euros, plus gives you a rate 1.5 percent worse than the real rate. That is roughly 3.5 percent total cost, or about $35 on a $1,000 exchange. An ATM in Europe charges you a $3 fee plus your bank's 2 percent foreign transaction fee. That is about $23 total. The ATM wins.
The math changes if you are withdrawing a very small amount (the fixed ATM fee becomes a larger percentage) or if your bank charges a very high foreign transaction fee. But for most people, the ATM is the cheapest way to get local currency.
Avoid airport and hotel currency exchanges
Currency exchange kiosks at airports and hotels charge the highest fees of all — often 5 to 10 percent or more. They are convenient, which is why they can charge so much. Use them only if you arrive with no local currency and cannot reach an ATM. If you have time, find an ATM first.
The same applies to currency exchange shops in tourist areas. They look like they might be cheaper than banks, but they are usually more expensive. Stick with your bank, a credit union, an ATM, or a specialized money transfer service.
How to compare your options before you travel
| Method | Typical Cost | Speed | Notes |
|---|---|---|---|
| Bank exchange before travel | 1–3% fee plus 1–2% rate markup | Same day to 7 days (if ordering) | Convenient; may require advance order for uncommon currencies |
| Credit union exchange | 0–2% fee plus small rate markup | Same day to 7 days | Often cheaper than banks; must be a member |
| ATM in destination country | $2–5 fee plus 1–3% foreign transaction fee | Immediate | Best rate; cheapest for most trips |
| Airport or hotel exchange | 5–10% or more | Immediate | Most expensive; use only as last resort |
| Specialized service (Wise, OFX) | 0.5–2% fee plus real rate | 1–3 business days | Good for large amounts or transfers; requires account setup |
Before you travel, do this: Call your bank and ask their fee and rate. Check whether your bank charges a foreign transaction fee when you use an ATM abroad. Look up the real market rate on XE.com. Calculate the total cost of each method. Most of the time, an ATM in the destination country will be cheapest. But if you are exchanging a very large amount, or if your bank offers a particularly good rate, exchanging before you leave might make sense.
Write down the numbers for each option so you can compare them side by side. The difference between the cheapest and most expensive method can easily be $50 or more on a typical vacation exchange. Spending 10 minutes on this calculation before you travel can save you real money.
Frequently Asked Questions
Do I need to be a customer to exchange currency at a bank?
Most banks will exchange currency only for customers with an account. Some will exchange for non-customers, but they may charge a higher fee or require a minimum amount. Call ahead and ask. If you are not a customer and your bank will not help, try a credit union or a currency exchange service.
What if I need currency on a weekend or after hours?
Banks are closed on weekends and evenings. If you need currency urgently, your options are limited: an ATM in the destination country (if you are already traveling), an airport exchange kiosk (expensive), or a specialized service like Wise that operates online 24/7 (but takes 1–3 business days). Plan ahead to avoid this situation.
Can I exchange currency I brought back from a trip?
Yes. Most banks will exchange foreign currency back to dollars, though they charge a fee and give you a worse rate than the real market rate. The fee and markup are usually similar to what they charge for exchanging dollars to foreign currency. Some banks have a minimum amount they will exchange.
Is it better to exchange a large amount before I travel or use ATMs while I am there?
For most people, using ATMs in the destination country is cheaper, even after the ATM fee and foreign transaction fee. But if your bank offers a particularly good rate, or if you are exchanging a very large amount, exchanging before you leave might save money. Calculate both options using the real market rate from XE.com before you decide.
What is the difference between the exchange rate and the fee?
The exchange rate is the price of one currency in terms of another — how many euros you get per dollar, for example. The fee is a separate charge the bank takes for doing the exchange. Banks also mark up the exchange rate itself, giving you a worse rate than the real market rate. Both the fee and the rate markup are costs to you.