Yes, you can deposit foreign currency, but your bank will convert it and may charge you for the service

Most U.S. banks accept foreign currency deposits, but they do not hold the money in its original form. The bank converts it to U.S. dollars at their exchange rate, deposits the dollar amount to your account, and charges you a fee for the conversion. The amount you receive depends on the exchange rate the bank uses on the day of deposit, which is often less favorable than the mid-market rate you see online.

Some banks offer this service at the branch counter for cash. Others require you to mail in foreign currency or use a specialized service. A few banks do not accept foreign currency at all, so you need to check your bank's policy before you show up with bills or coins.

The conversion fee, exchange rate markup, and processing time all vary by bank and by currency. There is no single standard, so comparing your options before you deposit can save you money.

Key Takeaways

  • Your bank will convert foreign currency to U.S. dollars at their own exchange rate, which includes a markup above the mid-market rate.
  • Conversion fees typically range from $10 to $30 per deposit, though some banks charge a percentage of the amount converted instead.
  • Not all banks accept foreign currency deposits, and those that do may require you to visit a branch in person or mail the currency in.
  • The exchange rate your bank uses is usually worse than the rate you see online, so depositing foreign currency costs more than converting it through a currency exchange service first.
  • Some banks hold the deposit for several business days while they process and verify the foreign currency before crediting your account.

How banks convert and deposit foreign currency

When you deposit foreign currency at a bank branch, a teller counts and inspects the bills or coins, records the amount, and sends it to the bank's processing center. The bank then converts the total to U.S. dollars using an exchange rate they set, subtracts their conversion fee, and deposits the remaining dollars to your account.

The exchange rate the bank uses is almost always worse than the mid-market rate—the true rate between banks. For example, if the mid-market rate for euros is 1.10 dollars per euro, your bank might use 1.05 or 1.08 instead. That difference is how the bank profits on the conversion, on top of any explicit fee they charge you.

The entire process usually takes three to five business days. During that time, the bank verifies the currency is genuine, counts it again, and processes the conversion. Your account shows a pending deposit until the conversion is complete.

Fees and exchange rate markups you will encounter

Banks charge for foreign currency deposits in two ways: a flat fee per deposit and a markup on the exchange rate itself. The flat fee ranges from $10 to $30 at most major banks, though some regional or online banks charge less or nothing at all. A few banks charge a percentage instead—typically 1% to 3% of the amount converted.

The exchange rate markup is separate from the flat fee. If the mid-market rate is 1.10 and your bank uses 1.05, that 0.05 difference is the markup. On a large deposit, the markup can cost more than the flat fee. For example, converting 1,000 euros at a 0.05 markup costs you 50 dollars in addition to any flat fee.

Some banks publish their foreign currency exchange rates online or in branch. Others do not disclose the rate until after you deposit. Before you deposit, call your bank and ask what fee they charge and what rate they will use, or ask them to show you a recent deposit receipt so you can see the actual rate they applied.

Which banks accept foreign currency and how to deposit it

Large national banks like Bank of America, Wells Fargo, and Chase accept foreign currency deposits at most branches, though policies vary by location. Credit unions and smaller regional banks may not accept foreign currency at all, or may accept only certain currencies. Online-only banks typically do not accept foreign currency deposits because they have no physical branches.

If your bank accepts foreign currency, you have a few options for how to deposit it. The most common is to visit a branch in person with the cash and ask a teller to deposit it. Some banks allow you to mail foreign currency to a processing center, though you will need to fill out a form and insure the package. A few banks partner with currency exchange services and can order foreign currency for you, but that is the reverse of what you need.

Before you deposit, call your bank's customer service line or visit a branch and confirm they accept the specific currency you have. Some banks accept major currencies like euros, pounds, and yen but not smaller or less common ones. Ask whether they accept coins as well as bills—many banks refuse coins because they are harder to process.

When it makes sense to use a currency exchange service instead

If you are converting a large amount of foreign currency, a currency exchange service may give you a better rate than your bank. Exchange services like OANDA, XE, or local currency exchange shops often have lower markups and sometimes lower fees than banks, especially for amounts over $1,000.

The trade-off is convenience. A currency exchange service requires you to visit their location or mail them the currency, whereas your bank is already where you do business. For small amounts—under $500—the difference in rate is usually small enough that the bank's convenience outweighs the cost. For larger amounts, it is worth calling a few exchange services and asking what rate they would give you.

If you use an exchange service, they will give you U.S. dollars in cash or a check, which you then deposit into your bank account. That second deposit may also trigger a fee if you deposit a large check, so factor that in when you compare costs.

Holding periods and verification delays

After you deposit foreign currency, your bank may place a hold on the deposit while they verify the currency and process the conversion. The hold period is usually three to five business days, though some banks hold longer if the amount is large or if the currency is uncommon.

During the hold, the money shows in your account as pending, and you cannot withdraw it. The bank is verifying that the bills are genuine, counting them again to confirm the amount, and processing the conversion. Once the hold lifts, the converted dollars are available to use.

If your bank suspects the currency is counterfeit or damaged, they may refuse the deposit and return it to you. This is rare with major currencies and bills in good condition, but it can happen. If your currency is refused, ask the bank why and whether you can redeposit it later.

What to do if your bank does not accept foreign currency

If your bank does not accept foreign currency deposits, you have several alternatives. You can visit a branch of a larger bank that does accept foreign currency and open an account there, or you can use a currency exchange service to convert the money to dollars first and then deposit the dollars at your own bank.

Some international money transfer services like Wise (formerly TransferWise) allow you to hold foreign currency in a digital account and convert it to dollars when you choose. If you receive foreign currency regularly, this may be more cost-effective than converting each deposit separately at a bank.

If you have a large amount of foreign currency, you can also contact your bank and ask whether they can make an exception or refer you to a partner service. Some banks have relationships with currency exchange companies and can facilitate the conversion even if they do not do it in-house.

Frequently Asked Questions

Will my bank give me the mid-market exchange rate?

No. Banks always use a rate that is worse than the mid-market rate, and they add a markup on top of that. The markup is how they profit on the conversion. You will always receive fewer dollars than you would if you converted at the true mid-market rate.

Can I deposit foreign coins?

Most banks refuse foreign coins because they are expensive and time-consuming to process. Call your bank first and ask. If they refuse, a currency exchange service may accept coins, though they often charge a higher fee for them than for bills.

What happens if the currency is damaged or torn?

Banks may refuse damaged bills or require you to exchange them at a currency exchange service first. If a bill is torn, creased, or stained, inspect it before you deposit. If your bank refuses it, contact the central bank of that country—many will exchange damaged currency for new bills.

How long does the conversion take?

Most foreign currency deposits are converted and credited to your account within three to five business days. Some banks take longer, especially for large amounts or uncommon currencies. Ask your bank for a specific timeline when you deposit.

Can I deposit foreign currency into a savings account or only checking?

You can deposit foreign currency into either a checking or savings account. The conversion process is the same. The bank converts the currency to dollars and deposits the dollars to whichever account you specify.