Yes, most banks exchange currency, but the process and costs vary widely
Most banks do exchange foreign currency, but not all branches do it, and the ones that do often charge fees that make the exchange expensive. You will need to call ahead to confirm your bank offers the service, find out what currencies they stock, and learn what they charge. Some banks require you to be a customer; others do not. The exchange rate a bank offers is almost always worse than the mid-market rate you see online, because the bank builds in a margin to cover their costs and profit.
If you need currency for travel or business, a bank is one option, but it is rarely the cheapest one. Credit unions, currency exchange specialists, and online services often offer better rates. The choice depends on how much currency you need, how quickly you need it, and whether you want cash or a card-based option.
Key Takeaways
- Call your bank before you go—not all branches stock foreign currency, and some require advance notice to order it.
- Banks charge fees on top of an unfavorable exchange rate, so the total cost is usually higher than other methods.
- Credit unions and currency exchange shops often offer better rates than banks, especially for larger amounts.
- If you need currency the same day, a bank branch with stock on hand is faster than ordering online, but online services are usually cheaper if you have time to wait.
What to expect when you exchange at a bank
When you walk into a bank to exchange currency, you will hand over U.S. dollars (or another currency you have) and receive the foreign currency in cash. The teller will show you the rate they are using, which includes the bank's markup. You may also pay a flat fee—typically $5 to $15—or a percentage fee on the amount exchanged. Some banks waive the fee for customers with certain account types or balances.
The whole transaction usually takes 10 to 15 minutes if the bank has the currency in stock. If they do not, they will order it from a currency supplier, which takes three to seven business days. You will need to return to the branch to pick it up, or the bank may mail it to you. Some banks charge an additional fee for ordering currency that is not in stock.
Bring your ID and be prepared to state the purpose of the exchange—banks ask this as part of anti-money-laundering compliance. You do not need a special form or advance paperwork, but calling ahead to confirm availability and pricing will save you a wasted trip.
How bank exchange rates compare to other options
A bank's exchange rate is set by the bank, not by market conditions. The mid-market rate—the rate banks use to trade with each other—is what you see on financial websites like XE.com or OANDA. A typical bank will offer a rate that is 2 to 5 percent worse than the mid-market rate, meaning you lose money on the conversion itself before any fees are added.
Credit unions often offer better rates than banks because they operate on a nonprofit model and pass savings to members. Currency exchange specialists like Travelex or local exchange shops sometimes beat bank rates, especially if you are exchanging a large amount. Online services like Wise (formerly TransferWise) offer mid-market rates or close to it, but they require a bank transfer or card payment and take one to three business days to deliver the currency.
For small amounts—under $500—the difference between a bank and a specialist may be $10 to $30. For larger amounts, the gap widens. If you are exchanging $5,000, a 3 percent difference is $150. Comparing rates before you commit is worth the phone call.
When a bank is the right choice
A bank makes sense if you need cash the same day and you are already a customer. If your bank has the currency in stock and charges a reasonable fee, the convenience of walking in and leaving with cash may outweigh a slightly worse rate. This is especially true if you are exchanging a small amount and the fee is flat rather than percentage-based.
A bank is also the right choice if you need an unusual currency that specialist shops do not stock. Major banks keep euros, pounds, yen, and Canadian dollars on hand, but if you need Thai baht or Argentine pesos, a bank may be your only same-day option. Call ahead to confirm they have it.
If you are traveling and realize you need currency after hours or on a weekend, a bank is not an option—you will need an ATM or a 24-hour exchange service. Most ATMs abroad charge a fee but offer a competitive rate because they pull from the mid-market. Using a debit card with no foreign transaction fees is often cheaper than exchanging cash at all.
Steps to exchange currency at your bank
- Call your bank's main branch or customer service line. Ask whether they exchange currency, which currencies they stock, and what the fee is. Write down the rate they quote—it may change by the time you arrive.
- Ask if you need to order the currency in advance. If they do not have it in stock, find out how long an order takes and whether there is an additional fee.
- Bring your ID and the U.S. dollars (or other currency) you want to exchange. Have more cash than you think you need in case the rate is worse than you expected.
- Go to the branch during business hours. Most banks do currency exchange Monday through Friday, 9 a.m. to 5 p.m. Some branches have shorter hours.
- Tell the teller you want to exchange currency. They will confirm the rate, show you the fee, and complete the transaction. Ask for a receipt.
- Count the cash before you leave the branch. Verify that the amount and currency are correct.
Alternatives to bank currency exchange
If a bank's rate or fee is too high, you have other options. Credit unions often offer better rates to members and may not charge a fee. Currency exchange shops in major cities or airports specialize in foreign currency and sometimes beat bank rates, though airport shops are usually the most expensive option. Online currency services like Wise, OFX, or Remitly offer competitive rates but require a bank transfer and take several days.
ATMs abroad are often the cheapest way to get foreign currency because they use the mid-market rate plus a small ATM fee—usually $2 to $5. If you are traveling, using your debit card at an ATM in the destination country often costs less than exchanging cash before you leave. Just make sure your bank does not charge a foreign transaction fee; if it does, the ATM fee may not save you money.
Prepaid travel cards let you load foreign currency before you travel and use it like a debit card abroad. The rates are usually competitive, and you avoid carrying large amounts of cash. Some cards charge a fee to load currency; compare the total cost before you commit.
Fees and hidden costs to watch for
Banks charge fees in several ways. A flat fee is a fixed amount—say, $10—regardless of how much you exchange. A percentage fee is a percentage of the amount—say, 2 percent of the total. Some banks charge both. On top of the fee, the exchange rate itself includes a markup, so you are paying twice: once in the rate and once in the fee.
Ask your bank for the all-in cost before you exchange. For example, if you are exchanging $1,000 and the bank charges a $10 fee plus a 3 percent markup on the rate, your total cost is roughly $40 to $50 in lost value. A currency specialist might charge only $15 to $20 for the same transaction.
Some banks offer better rates to customers with high balances or premium accounts. If you have a relationship with your bank, ask whether you may have access to for a better rate. It is worth asking, and the answer is free.
Frequently Asked Questions
Do I have to be a customer of the bank to exchange currency?
Most banks will exchange currency for non-customers, but some require you to have an account. Call ahead and ask. If your bank does not exchange for non-customers, a credit union, currency exchange shop, or online service will.
What if my bank does not have the currency I need?
They can order it, but it takes three to seven business days and may cost extra. If you need the currency sooner, try a currency exchange specialist or an online service. If you are traveling, using an ATM in the destination country is usually faster and cheaper.
Can I exchange currency online through my bank?
Some banks offer online currency ordering, where you order through their website and pick up the cash at a branch. The rate and fee are usually the same as in-branch. A few banks offer wire transfers in foreign currency, but that is different from exchanging cash and is mainly for business use.
Is the exchange rate locked in when I order currency?
If you order currency in advance, the bank may lock in the rate at the time of order, or they may use the rate on the day you pick it up. Ask your bank which applies. Online currency services usually lock in the rate when you place the order.
What happens if I exchange currency and then do not use it?
You can exchange it back at the same bank, but you will pay the fee and markup again, so you will lose money on both transactions. If you have leftover currency after a trip, keep it for the next trip or exchange it at a currency specialist rather than your bank.