Brandon Lee
Banks have a reputation for being expensive places to convert currency, but some banks do offer free foreign exchange services. Bank of America, for example, allows customers to exchange foreign currencies for free, but only on orders of $1,000 or more. Citibank also offers free foreign exchange services, but only for amounts over $1,000, and TD Bank offers free foreign exchange to customers with a qualifying account type. Some banks, like Chase and Citizens Bank, offer currency exchange services for a fee, but don't disclose the details of their fees.
| Characteristics | Values |
|---|---|
| Banks offering free foreign exchange | Bank of America, Citibank, PNC Bank, TD Bank, Wells Fargo |
| Bank of America free foreign exchange conditions | Orders of $1,000 or more |
| Citibank free foreign exchange conditions | Orders of $1,000 or more |
| PNC Bank free foreign exchange conditions | N/A |
| TD Bank free foreign exchange conditions | Qualifying type of account |
| Wells Fargo free foreign exchange conditions | N/A |
| Banks offering paid foreign exchange | Chase, Citizens Bank, First Citizens Bank, First Horizon Bank |
| Banks offering foreign exchange to customers only | Regions Bank, Service Federal Credit Union, State Employees Credit Union, TD Bank, U.S. Bank |
| Banks offering foreign exchange without customer restrictions | N/A |
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What You'll Learn
Banks with free foreign exchange services
Banks typically charge a transaction fee for exchanging currency, which can be a flat or variable fee depending on the amount and type of currency. However, some banks do offer free foreign exchange services.
Bank of America offers free foreign exchange services to its customers, but only on orders of $1,000 or more. Below this threshold, the bank charges a $7.50 delivery fee. Bank of America Preferred Rewards clients receive a discount on the published exchange rate and free standard shipping.
Citibank's World Wallet Foreign Exchange Service provides access to over 50 currencies, but it is only available to existing customers. Citibank also offers fee-free exchanges of foreign currency back to US dollars if the amount is over $1,000. For amounts below this, a $5 fee is charged.
TD Bank offers 55 types of currencies that can be ordered online or at a TD branch. While there is a $7.50 fee for online orders, there is no fee for exchanging currency in person at a TD Bank location.
PNC Bank will buy back currency for US dollars with no transaction fees, but only in notes, not coins.
Some credit unions also offer free foreign exchange services, such as the Service Federal Credit Union and State Employees Credit Union. However, credit union members typically need to exchange currency at specific branches, and it is recommended to call ahead to ensure the desired currency is available.
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Foreign exchange fees
Banks and credit unions are a popular option for exchanging foreign currency. However, they have a reputation for being expensive, as they tend to add a margin to the mid-market or interbank exchange rate. This means that you get less currency in exchange for your money.
Some banks do offer free foreign exchange services, but these are usually restricted to existing customers with certain types of accounts. Bank of America, for example, allows customers to exchange foreign currencies for free, but only on orders of $1,000 or more. Below this threshold, a $7.50 delivery fee is charged. Citibank also offers free foreign exchange, but only for orders above $1,000, with a $5 fee for smaller amounts. PNC Bank will buy back currency for US dollars with no transaction fees, but only in notes, not coins. TD Bank offers free foreign exchange to customers with a qualifying type of account.
If you are exchanging currency at a bank, it is worth noting that you will usually need to be an existing customer, and you may need to order the currency in advance. Banks will usually charge a transaction fee for exchanging currency, which can be a flat or variable fee, depending on the amount and type of currency.
To avoid paying foreign exchange fees, you could consider opening a multi-currency account. These accounts typically don't have foreign transaction fees and often offer better rates. Alternatively, you could use an online currency converter, although these usually offer less favourable exchange rates and may charge delivery fees. Exchanging currency at an airport kiosk or in your destination country will also usually be more expensive than exchanging it with your bank before you travel.
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Exchanging currency at the airport
When exchanging currency at the airport, you may pay up to 15% more than bank rates, excluding additional hidden fees. This means you will not get the market rate for your currency, resulting in a lower amount of foreign currency in exchange for your dollars.
To avoid these high fees and unfavourable exchange rates, it is recommended to order foreign currency from your bank before travelling. Most banks allow customers to order foreign currency in person, by phone, or online, although you will typically need to have an account with the bank. Ordering currency in advance gives you time to compare rates and secure a better exchange rate, reducing stress upon arrival and providing peace of mind.
If you are exchanging leftover foreign currency back to your local currency, some travellers suggest spending any small amounts at the airport on items such as snacks or souvenirs. Others recommend keeping the foreign currency for future trips or donating it if the airport has a donation option. While exchanging currency at the airport is convenient, it is generally more cost-effective to plan ahead and order foreign currency from your bank before travelling.
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Multi-currency accounts
Banks typically charge a margin on the mid-market or interbank exchange rate, which can make exchanging currency expensive. However, a multi-currency account can help you avoid foreign transaction fees and get better exchange rates.
One example of a multi-currency account is Wise, which offers low-cost currency conversion, international payments, and multi-currency accounts accessible via your phone. With a Wise account, you can pay in 48 currencies at the mid-market rate, send and receive money, and earn 3.92% APY on your USD. Wise serves over 14.8 million customers and helps them transfer £36 billion every quarter safely. You can open a Wise account in minutes, and for a one-time fee of $9, you'll get a Wise Multi-Currency Card that's accepted anywhere that takes card payments.
Another option is HSBC's Global Money Account, which allows you to make payments and transfers in up to 19 currencies with no HSBC fees. HSBC's multi-currency account is available in GBP, EUR, or USD, and you can save in the currency of your choice. HSBC also offers an FX app to help you manage your foreign exchange needs.
If you're a business owner, you might consider Corpay's Multi-Currency Accounts, which are designed to make cross-border transactions faster and more efficient. With Corpay, you can instantly open multiple accounts in your business's name, access them through a single online platform, and conveniently track your funds and payments.
While multi-currency accounts can offer benefits, it's important to carefully review the terms and conditions of any account before signing up. Additionally, keep in mind that some banks, like Bank of America and Citibank, offer fee-free exchanges of foreign currency back to US dollars if you change more than a certain amount.
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Exchanging currency at a credit union
Banks have a reputation for being expensive places to convert currency. However, exchanging currency at a credit union can be a great option, as they often offer fair exchange rates and lower fees than banks.
Credit unions that offer currency exchange services include America First Credit Union, Wings Financial Credit Union, Service Federal Credit Union, and State Employees Credit Union. America First Credit Union members can buy and sell currency for over 100 countries at any branch location. Wings Financial Credit Union has over 90 different currencies available for exchange, but only members may place orders. There is a $10 transaction fee for orders under $300, while orders over $300 have no fee. Service Federal Credit Union has over 60 types of currencies available, and orders can be placed by phone or at a local branch. State Employees Credit Union also offers currency exchange services at their branches, but members must call customer service to ensure that the desired currency is available at their nearest location.
It is important to note that not all banks or credit unions offer currency exchange services, and most require individuals to be customers or members to exchange currency. Additionally, some credit unions may have transaction fees or minimum exchange amounts. Therefore, it is recommended to compare exchange rates and fees before choosing a credit union for currency exchange.
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Frequently asked questions
Yes, some banks offer free foreign exchange services, but often there are stipulations. For example, Bank of America offers free foreign exchange for orders of $1,000 or more. Otherwise, they charge a $7.50 delivery fee. Citibank also offers free foreign exchange for orders over $1,000, and a $5 fee for orders under this amount. PNC Bank offers currency exchange for no fee, but only for notes, not coins.
Most banks require you to be an existing customer to exchange currency. Some banks will also require you to have a specific type of account, such as a premium account, or a checking or savings account.
Exchanging currency at a bank will almost always be the cheapest option. Banks offer better exchange rates and lower fees than airport kiosks and exchange counters.
Not all banks offer foreign exchange services. Some banks that do include Bank of America, TD Bank, Regions Bank, Service Federal Credit Union, and State Employees Credit Union.
You can use an online currency converter, such as Currency Exchange International, or a multi-currency account, such as Wise. These options often have less favourable exchange rates and may include delivery charges.
