Currency conversion rates

Jun 26, 2006 2 Replies
S

Hi,



when converting from one currency into another, then there are 2 types of conversion rates AFAIK.



One rate is for non-cash so to speak (i.e. conversion after a bank transfer for example), and the other rate is for converting cash (e.g. when I use my ATM in a foreign country or change cash in a bank). The cash conversion rate is slightly worse AFAIK.



Questions:


1) What are the correct english terms for the 2 types of conversion rates described above?


2) Do these rates differ from bank to bank?



Thanks for your help.


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D

Interbank rate - shouldn't vary from bank to bank but it can change marginally for every transaction. It's used in ATM transactions, but most banks will load it by a total of 4.2% or thereabouts for ATM use. (Nationwide don't load if you are looking for the cheapest way).

Tourist rate for cash/TC transactions - will vary from bank to bank but probably not a lot. Depends how much 'commission' they want to build into the rate so that they can say 'commission-free'. Typically 5% or a little more either side (buy/sell) of the interbank rate.

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D

That's most UK banks - may differ where you are.

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