Cheapest way to lock in $USD at current exchange rate

LKeeno on 09/09/2012 - 16:52
Last edited 09/09/2012 - 17:00

Hi,

I took advantage of the cheap flights to LA via Expedia.ie previously posted on this site and am leaving end of October. Planning to spend about $4k while I'm in the US on beer etc.

I have a 28degrees card and I had planned to use this to take advantage of the great exchange rates it offers. However with iron ore prices slumping my bet is that the $AUD will follow and I'd like to lock in my spending money at the current exchange rate.

Was just wondering what the cheapest way to do this was, any ideas would be much appreaciated.

I checked out the travelex website , they offer 1 AUD = 0.9881 USD which is more than 5% under xe.com and I think the rate I would get using the 28degrees card.

Cheers

Travel

Comments

  • YadaYadaYada on 09/09/2012 - 16:54

    Go to a foreign exchange place and convert in cash if this is better?

  • Keeno on 09/09/2012 - 17:02
    -1

    Cheers for the idea but I don't think so, there would also be an additional fee, I've been burnt in airports this way before.

    • YadaYadaYada on 09/09/2012 - 17:17
      +2

      I don't mean at airports (that is the worst place to exchange currency because they know you're desperate!) - there are plenty of currency exchange places in the city, some of which won't charge a conversion fee. You have plenty of time to shop around since you're going in October.

      • StewBalls on 10/09/2012 - 10:34

        +1 to that.

        I'd also add that it pays not to forget to check out your local bank branch, just in case they happen to have a good daily exchange rate. Often, as a customer you might be able to negotiate a service fee reduction or waiver, and their exchange rates can be quite good if you strike them just at the right time! Last time I was going OS I got all of my USD & JPY from my local CBA branch & got a great deal with no fee! :)

  • Keeno on 09/09/2012 - 17:22

    I see, thanks for the info. I'll check it out.

  • beejay1177 on 09/09/2012 - 17:52

    Maybe through a travellers card, like the NAB one? There is a 1% load fee but the rates were pretty good for asian currencies anyway
    (edit load % is1%, my old travelex card is 3%)

    • Keeno on 09/09/2012 - 20:59

      Sounds pretty good and means I won't have a bundle of cash to carry around. Will look into it. Thanks

  • pork chop on 09/09/2012 - 19:07

    which city r u in?

  • Keeno on 09/09/2012 - 21:00

    I'm in Perth

  • gaffa on 10/09/2012 - 07:55

    We have travelled to the us twice in the last couple of years and have always used the anz travel card, it costs $11 and you can load a fair bit of $$ onto your card for the $11 fee. We get a new card each time we go as it is cheaper than the 1 percent reload fee.

    They give you 2 cards which you can use both.

    Also, not sure if they still do this, though if you are an anz credit card customer, you can purchase these funds on your credit card as a purchase and not as a cash advance, so you can get the $us with upto 40 days to pay it off without interest.

  • nobargainforme on 10/09/2012 - 08:17

    If you just want cash order through Australia Post. They have a good rate and don't charge fees (at least last time I used them).

  • currentlyoffline on 10/09/2012 - 13:13

    I use the travel card too. Found com bank to be best as theirs works as a visa debit card and can be used in ATMs. Just load all of the money you want to take on to it in the first transaction as this is fee free and included in the initial setup fee.
    ($15)

  • Keeno on 11/09/2012 - 10:09

    Thanks for all of the comments, went to the commonwealth bank yesterday and and have looked into the Aus Post Card.

    Commonwealth Money Card / Auspost Prepaid Currency Card / Travellex Online rates are as follows 0.9916 / 1.0108 / 0.9944 respectively so the card from Auspost wins however they are all short of the actual exchange rate which xe.com lists as 1.03412 at the moment.

    From experience, when using my 28 degrees mastercard, I pretty much get the actual exchange rate, so in the case of the Commonwealth Money Card being charged with $4000 the difference is $170 (diference in exchange rates) + $15fee + higher cost ATM withdrawals while I'm in the US + another bad converswion rate for any money I dont spend (unlikely). Seems like a rip off to me.

    I guess I'll keep an eye on the exchange rate and prepay hotels etc, but have decided not to lock in any money now as I dont really feel like handing over a couple of hundred bucks to some bank for the conversion.

    Cheers again for the replys

    • epyx on 11/09/2012 - 14:16

      Well that all sucks :) I've been thinking through a similar dilemma, as I travel to the US every few months. One solution I've been thinking of is to purchase US$ gift cards using my 28 Degrees card.

      As I happen to stay in Marriott hotels mostly, I have previously purchased Marriott gift cards (around $2K per time). There's a nice little lurk you can use with this, which is that you can get 10% extra load value with a coupon code, plus you can get another 5% via TopCashBack. As if that's not enough, you can also claim upwards of 3.5% back from TopCashBack when you actually book your hotel stay. In the end, that's heading towards 20% discount, and you convert at the interbank rate! (kudos to FlyerTalk for the discount stacking tricks). Oh and then there's Marriott Rewards …

      There must be other gift cards that could be purchased in this kind of way e.g. fuel cards, shopping cards.

  • mrbenj on 23/09/2012 - 12:35
    +1

    Best plan .. cash .. not from a bank but from the smallest dingiest Asian exchange store.
    No overheads. Shop around .
    In Sydney up and down George street (near Central) there are quite a few exchange places. The best price is usually 1.5c below the exchange of the day. In comparison - this week I bought at 1.03 (when the US = 1.045) the banks were offering a pathetic - 98c.
    The trick .. never buy something from a business with a shiny floor that you can get from a dirty floor.

    I'm sure other cities have similar cash dealers.

    • Spizz on 25/09/2012 - 18:14

      Total agree. In Adelaide UAEEXchange on King William, Or TravelOz in the city. Both have the best rates out of everyone, and no fees or commissions.

  • McEels on 23/09/2012 - 22:15

    American Express Traveller's Cheques might be an option too.

    http://www.americanexpress.com/australia/personal/te/tc/faq.…

  • Meho2026 on 28/09/2012 - 23:57

    Amex Travellers cheques in $US are best. They can be used virtually anywhere in USA just like cash, in stores, motels, restaurants, you name it and they will give you change in cash. Plus they obviously are insured against theft.

    • epyx on 29/09/2012 - 19:07
      +1

      What exchange rate are they issued at? I don't think they are going to give you the interbank rate, particularly since Aus Post issues them without charging a commission.

  • perfect-timing on 02/10/2012 - 12:01
    +1

    UAEEXchange seems to provide with best exchange rates. check it out.

  • Daabido on 04/10/2012 - 07:24

    Anyone in Brisbane know of places which do good exchange rates?

  • J6 on 20/10/2012 - 16:02

    28 degrees credit card!

  • Cmw64 on 20/10/2012 - 22:41

    The new crown exchange at Carindale in Brisbane has had the bet rates for a while now, no commissions and if you get your Gran to collect it they will give a seniors discount of about .9%

    • INFIDEL on 26/11/2012 - 20:02

      Thanks for that - I'm in Carindale. I'll send my Father down for a discount!

  • ilostnemo on 01/11/2012 - 16:56

    Theres a little shop in LOndon Court, which is very popular,

    I changed $100 aussie and got $102 usd.

  • INFIDEL on 26/11/2012 - 19:55

    For comparison of some bank & PO rates http://bestexchangerates.net

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