Yes, most banks exchange foreign currency, but the process and cost vary widely

Most banks in the United States do exchange foreign currency, but not all branches do it, and the ones that do often charge fees that can be steep. A bank will typically exchange currency for you if you have an account there, though some require you to order the currency in advance. The exchange rate a bank offers is usually worse than the rate you would get elsewhere — they build in a margin for themselves — so it pays to understand what you are paying for and what your other options are.

The most important thing to know upfront: banks are not the cheapest way to exchange currency. They are convenient if you already bank somewhere, but if you are exchanging a large amount or need the best possible rate, other services often cost less.

Key Takeaways

  • Not every bank branch exchanges currency; you need to call ahead or check your bank's website to find out which locations do.
  • Banks typically charge a fee or markup on the exchange rate itself, meaning you pay more than the mid-market rate you see quoted online.
  • You may need to order currency in advance, especially for less common currencies, and the order can take several business days.
  • Credit unions, online currency exchanges, and airport kiosks are alternatives that may offer better rates depending on how much you are exchanging and how quickly you need it.

How banks exchange currency and what it costs

When you walk into a bank to exchange currency, you are paying for three things: the mid-market exchange rate (the real rate between currencies), a fee, and a markup on the rate itself. The mid-market rate changes constantly throughout the day. Your bank will not give you that rate. Instead, they quote you a rate that is worse — sometimes 2 to 5 percent worse — and they may also charge a flat fee on top of that, usually between $5 and $15 per transaction.

For example, if the mid-market rate for US dollars to euros is 0.92, your bank might quote you 0.88 or 0.89 instead. On a $1,000 exchange, that difference adds up quickly. Some banks waive the flat fee if you have a premium account or if you are exchanging a large amount, so it is worth asking.

The exact cost depends on the bank, the currency, and how much you are exchanging. Call your bank's foreign exchange desk or visit their website to ask for a quote before you commit. Do not assume all branches of the same bank charge the same rate — they sometimes do not.

Which banks exchange currency and how to order

Large national banks like Bank of America, Chase, Wells Fargo, and Citibank all exchange currency, but usually only at major branches in cities or near airports. Smaller regional banks and community banks may not offer this service at all. Your best first step is to call your bank's main customer service line and ask whether your branch exchanges currency, or check their website — most banks list which branches offer foreign exchange.

For common currencies like euros, British pounds, Canadian dollars, and Mexican pesos, you can often walk in and exchange on the same day, though the bank may need an hour or two to get the cash. For less common currencies, you will need to order in advance — sometimes a week or more. The bank will hold the currency for you once it arrives, usually for a set number of days before they send it back.

You will need to bring a government-issued ID and, if you are not a customer, possibly a second form of ID. If you are exchanging a large amount, the bank may ask where the money is coming from, as part of anti-money-laundering rules. This is routine and not a sign of a problem.

When a bank is the right choice and when it is not

A bank makes sense if you need currency quickly, you already bank there, and you are exchanging a small to medium amount — say, under $2,000. The convenience of walking in and leaving with cash in hand is real, and if your bank waives fees for premium customers, the cost may be reasonable.

A bank is usually not the best choice if you are exchanging a large amount, you have time to plan ahead, or you need an unusually good rate. In those cases, online currency exchange services like OFX, Wise, or XE often charge lower markups and fees. Airport currency kiosks are convenient but typically the most expensive option of all — use them only if you have no other choice.

Credit unions sometimes offer better rates than banks, especially if you are a member. It is worth calling your credit union to ask, even if you do not think they offer the service.

What happens if your bank does not exchange currency

If your bank does not exchange currency or does not have it in stock, you have several options. You can ask them to order it for you — many banks will do this even if they do not normally handle foreign exchange, though it may take longer and cost more. You can visit a branch of a larger bank that does exchange currency. You can use an online currency exchange service, which you can do from home and have the currency delivered to you or pick it up at a location near you. Or you can wait until you arrive at your destination and exchange money there, though this is usually more expensive.

If you are traveling internationally and need currency before you leave, ordering from your bank at least a week in advance is the safest approach. If you are leaving sooner than that, an online service may be faster.

Understanding exchange rates and avoiding surprises

The exchange rate you see quoted on Google or XE.com is the mid-market rate — the rate banks use to trade with each other. You will never get that rate as a consumer. Every service that exchanges currency for you — banks, credit unions, online services, airport kiosks — marks up the rate in their favor. The question is how much.

Before you exchange, ask your bank for a quote in writing or take a screenshot. Rates change throughout the day, so a quote is usually good for a short time only — sometimes just 15 minutes. If you see a rate you like, lock it in if the bank allows it. Some banks will hold a quoted rate for 24 hours if you ask.

Be wary of any service that quotes you a rate but does not tell you the fee upfront. The total cost is the rate plus the fee, and you need both numbers to compare fairly.

Frequently Asked Questions

Can I exchange currency without a bank account?

Yes. Most banks will exchange currency for non-customers, though some require you to have an account. Call ahead to confirm. You will need a government-issued ID. Online currency services also accept non-customers and often have no account requirement at all.

Is it cheaper to exchange money before I travel or after I arrive?

It depends on where you are going. In most countries, exchanging before you leave the US costs more than exchanging at a bank or ATM in the destination country. The exception is places where the local currency is hard to find or very expensive — ask your bank or check online forums for travelers to that country.

What if I need currency the same day?

Call your bank and ask if they have the currency in stock. If they do, you can usually pick it up the same day or the next morning. If they do not, an airport currency kiosk is your fastest option, though it will cost more. Some online services offer same-day pickup at certain locations.

Do I have to exchange all my currency back when I return?

No. You can keep foreign currency and exchange it later, though the rate may be different. Some banks charge a fee to exchange currency back to dollars. If you have a small amount left over, it is often not worth exchanging — keep it for your next trip or donate it.

What is the difference between a bank and a currency exchange service?

Banks are primarily for deposits and loans; currency exchange is a side service. Currency exchange services exist only to exchange money, so they often have better rates and lower fees. The tradeoff is that you cannot walk into most of them — you order online or by phone and pick up at a location or have it delivered.