How To Get The Best Rate

[tuffy]

We are planning a trip to Thailand shortly. What is the best way to maximize the US$? Will we get the best rate on Cash or travelers checks? Is there any place in particular that gives the best exchange rate (Airport, downtown , at individual bank etc)? DOes anyone know of a place where the charge for cashing TC is less?

Thanks for the Info!

[bmanly]

I would recommend you check the Bangkok Bank Exchange Rates site. It clearly shows what you will get on the ground in Thailand for your money. It is updated 3 times daily.

Note that you will always get less for your cash. The TT rate is the rate you get out of the ATM when you withdraw baht. If you use an ATM you will always get a better rate. Just make sure your US ATM card does not charge huge fees per withdrawal or a conversion rate on top, some I'm told charge nothing others a few dollars. I never use Travellers Cheques anymore.

As for cash rates, the only difference I can see is that some banks in Thailand offer closer to the TT rate than others. Bank of Asia usually is better than Bangkok Bank for example. If you are going to Pattaya let me know as there is a private travel agency there that has good exchange rates for cash too. At the end of the day, rather than running around with wads of US cash looking for the best deal you are better off using a ATM with low fees, hope that helps.

[lopburi3]

ATM cards are subject to your bank fees and a lower exchange rate (usually 1 or 2% below interbank rates) so if you can get travelers checks for no fee the change to cash them here is very little (under $1 I believe) and if you buy in $100 should be better than ATM rates. But the difference is hardly a factor for a normal visit. This is not a place where there is an underground exchange rate - what you see is what you get. The difference between places is not likely to pay for the shoe leather to go to another. I would bring the ATM card (make sure it can be used overseas/here) and some traveler checks just in case you lose it.

[tjo o tjim]

ATM all the way!

My credit union charges me $1 for using an ATM in Thailand, refunds up to $3/month of those fees, and gives me the interbank rate for the transaction.

TCs get you stuck with 1% fee on the rate if you are lucky. You will often pay 2%. Cash is worse. These things are only good as emergency money.

But by all means, stay the he11 away from credit cards! Citibank wants 3% extra for your transactions! Between the merchant's fees and the exchange fees, the card companies are often making more profit than the actual merchant selling the goods! Also, you only see part of the fees mid-period; the supplemental fee is tacked on when the period closes.

Credit Union accounts are golden though!

[tuffy]

Thanks for the info guys!

The reason I am asking is when i do get to Thailand next month I need to buy a car. So the last thing I want to do is walk around with an *ss full of cash. Even the travelers check thing isn't very appealing.

My wife seems to think that we will not get the same exchange rate if we wire money as opposed to changing good ole green backs from a few different times when she wired money back home.

What is the deal on that?

My bank has the option to send Baht or Dollars, is there a benefit either way on that?

[Steve2UK]

My bank has the option to send Baht or Dollars, is there a benefit either way on that?

Conventional wisdom is that you'll nearly always get more baht for your buck doing the exchange in Thailand - send dollars.

[OldAsiaHand]

......My wife seems to think that we will not get the same exchange rate if we wire money as opposed to changing good ole green backs from a few different times when she wired money back home.

What is the deal on that?

My bank has the option to send Baht or Dollars, is there a benefit either way on that?

Your wife is right, but not in the way she thinks. The cash rate is always less favorable than the wire rate, sometimes by quite a lot.

I agree with the prior poster that you should instruct your bank to wire dollars to whatever account in Thailand you are using and allow the exchange transaction to be done here. In my experience, that will get you the most favorable possible rate at the time of the transfer. The FX spreads made available to consumers by Thai banks are remarkably tight.

[lopburi3]

If you look at the exchange rate (full) on the Bangkok Bank web site you will see exactly what you will get for various denominations of US currency and wire transfer (TT). The TT rate will always be higher but you have to factor in the cost of wire (usually $30-50) and a fee of 200-500 baht at the Thai end. For larger amounts the better exchange rate will be advantages and it is safe - should be here in less than 24 hours from a US bank. Always, as mentioned, send foreign currency for exchange in Thailand.