Yes, most banks exchange currency, but the rate and fees vary widely

Your bank can exchange currency for you, but it is not always the cheapest or fastest way to do it. Most banks that hold checking or savings accounts also offer foreign exchange services — they will convert dollars to euros, yen, pesos, or dozens of other currencies. The catch is that banks add a markup to the exchange rate (called the spread) and may charge a flat fee on top. You might pay 2 to 5 percent more than the mid-market rate, which is what you would see on a financial news site.

The process is straightforward: you walk in, tell them what currency you need and how much, and they either hand you cash or deposit it into your account. For large amounts or less common currencies, you may need to order ahead so the bank has the cash on hand. For common currencies like euros or Canadian dollars, many branches keep them in stock.

Key Takeaways

  • Banks charge a markup on top of the mid-market exchange rate, typically 2 to 5 percent, plus may add a flat fee of $5 to $15 per transaction.
  • You can get cash at the branch, have it deposited to your account, or sometimes load it onto a travel card, depending on the bank.
  • Ordering ahead is necessary for large amounts or uncommon currencies, since most branches keep only small amounts of foreign cash on hand.
  • Online currency services and airport exchanges often charge more than banks, but credit unions and smaller regional banks sometimes offer better rates.
  • If you are traveling soon, comparing your bank's rate to a service like Wise or OFX before you exchange can save you hundreds of dollars on large amounts.

How banks calculate the cost of currency exchange

When you exchange currency at a bank, you are paying three things: the mid-market rate (the real rate), the bank's markup, and sometimes a flat fee. The mid-market rate changes constantly throughout the day and is what large financial institutions pay each other. Your bank then adds its own percentage on top — this is how they make money on the transaction.

A typical bank markup is 2 to 5 percent, though some charge more. On top of that, many banks charge a flat fee ranging from $5 to $15 per transaction. So if you exchange $1,000 at a bank with a 3 percent markup and a $10 fee, you lose roughly $40 total. That same $1,000 through a specialized currency service might cost you $15 to $25.

The markup is not negotiable at most banks, but the flat fee sometimes is — if you are exchanging a large amount, it is worth asking a manager whether they can waive it. Some banks also offer better rates to customers who maintain high balances or have premium accounts.

What currencies your bank can exchange

Most major banks can exchange the most common currencies: euros, British pounds, Canadian dollars, Japanese yen, Swiss francs, Australian dollars, and Mexican pesos. These are the ones banks keep in stock at most branches because demand is steady.

Less common currencies — Thai baht, South African rand, Polish zloty, or currencies from smaller countries — usually require you to order ahead, sometimes a week or more in advance. Some banks will not exchange certain currencies at all, especially if there is low demand in your area. If you need an uncommon currency, call your branch first to ask whether they can get it and how long it takes.

Online banks and some regional banks may have fewer currency options than large national banks. If you need a specific currency, check with your bank before you assume they can provide it.

How to order and receive foreign currency from your bank

For common currencies in small amounts, you can usually walk into a branch and exchange cash the same day. Bring your ID and the dollars you want to exchange (or a debit card if you want to withdraw from your account). The teller will give you the foreign currency in cash, or you can ask to have it deposited into your account instead.

For larger amounts or less common currencies, call your branch ahead of time. Tell them what currency you need, how much, and when you need it. The bank will order it from a currency supplier and hold it for you. This usually takes 3 to 7 business days, though it can be faster for common currencies. Some banks charge a small fee for ordering, on top of the exchange markup and any flat fee.

When you pick up the currency, bring your ID and the cash or account information the bank needs to debit. If you ordered a large amount, the bank may ask you to sign a form confirming the amount and the rate. Keep your receipt — it shows the rate you paid and the total cost.

When a bank exchange is more expensive than alternatives

Airport currency exchanges are almost always more expensive than banks — they charge 5 to 10 percent markups because they know travelers are in a hurry. If you can exchange currency before you leave, do it at your bank instead.

Online currency services like Wise, OFX, and Remitly often charge less than banks for large transfers, especially if you are sending money internationally or exchanging more than a few hundred dollars. These services are built around currency exchange, so their markups are lower — often 1 to 2 percent. The tradeoff is that transfers take 1 to 3 business days instead of happening instantly at a branch.

Credit unions sometimes offer better exchange rates than banks, especially if you are a member of a large credit union network. It is worth calling your credit union to compare before you exchange at a bank.

Travel cards (prepaid cards loaded with foreign currency) can be cheaper than cash exchange if you are staying abroad for a while, because you avoid the cash-to-card conversion fee. However, they charge fees for ATM withdrawals and sometimes for purchases, so compare the total cost before you load one.

What happens if you need currency urgently

If you need currency the same day and your bank does not have it in stock, your options are limited and expensive. Airport exchanges will have it, but you will pay a high markup. Some banks can rush-order currency from a supplier and have it ready within a few hours, but this usually costs extra.

The best strategy is to plan ahead. If you know you are traveling in two weeks, order your currency now. If you are leaving tomorrow and did not plan, accept that you will pay more — either at an airport exchange or by using an ATM abroad to withdraw cash (which usually has a lower markup than exchanging cash at an airport).

If you are traveling internationally and your bank does not have the currency you need, ask whether they can load it onto a travel card instead. Some banks can do this within hours, and the rate is often better than a cash exchange.

Frequently Asked Questions

Do I need an account at the bank to exchange currency?

Most banks require you to have an account with them to exchange currency, though some will exchange for non-customers if you pay a higher fee. Call your bank to ask. If you do not have an account, a credit union or currency exchange service may be faster.

What if the bank's rate changes between when I order and when I pick up?

The rate is locked in when you place the order, not when you pick it up. The bank guarantees you will get the rate you agreed to, even if the market rate moves. This protects you if the rate gets worse, but also means you do not benefit if it gets better.

Can I exchange currency online through my bank's website?

Some banks let you order currency online and pick it up at a branch, but most do not let you complete the full exchange online. You usually have to call or visit in person. Check your bank's website or app to see whether online ordering is available.

What if I exchange currency and then my plans change?

Most banks will exchange foreign currency back to dollars, but they charge another markup and fee on the return exchange. You will lose money on both directions. If your plans change, it is usually cheaper to keep the currency or use it on a future trip.

Is exchanging currency at my bank safer than using an online service?

Both are safe if you use your bank's official branch or website, or a licensed currency service. Never exchange currency with someone on the street or through an unverified online site. Stick to your bank, credit union, or a service regulated by your state's financial authority.