Most folks here are well aware of this situation, but I had an interesting experience this morning.
When I travel abroad, my practice has always been to get local cash from an ATM. Using my Schwab bank debit card, there are no fees, so it's pretty economical.
But a couple of my new neighbors commented that they love using the local Chase bank branch when they travel because they can get Euros or whatever at the best rate and there is no fee.
So I happened to pass by the Chase bank this morning and went in to ask what they charged to buy Euros.
"Oh there's no fee of any kind, as long as you have an account with us."
"Great," I replied, "Where do you get the exchange rate?"
"Well, we just put in the request and the system tells us what it will be."
"Hmm. Could you put in a request for me but cancel it, so I can see what it would cost today?"
"Sure." And out came the answer: 1 Euro would cost US$1.2219.
I thanked them, went outside and opened XE.com on my phone to see that the actual exchange rate was $1.1509.
That's a 6% premium they charge, which is pretty outrageous IMHO.
Caveat emptor.
When I travel abroad, my practice has always been to get local cash from an ATM. Using my Schwab bank debit card, there are no fees, so it's pretty economical.
But a couple of my new neighbors commented that they love using the local Chase bank branch when they travel because they can get Euros or whatever at the best rate and there is no fee.
So I happened to pass by the Chase bank this morning and went in to ask what they charged to buy Euros.
"Oh there's no fee of any kind, as long as you have an account with us."
"Great," I replied, "Where do you get the exchange rate?"
"Well, we just put in the request and the system tells us what it will be."
"Hmm. Could you put in a request for me but cancel it, so I can see what it would cost today?"
"Sure." And out came the answer: 1 Euro would cost US$1.2219.
I thanked them, went outside and opened XE.com on my phone to see that the actual exchange rate was $1.1509.
That's a 6% premium they charge, which is pretty outrageous IMHO.
Caveat emptor.