If you’re planning a trip to Canada in the near future, you may want to convert some U.S. dollars to Canadian dollars. Keep reading to learn everything you need to know about converting USD to CAD, including where to get the best exchange rates and how to avoid paying high fees on your conversion.
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How to Convert U.S. Dollars to Canadian Dollars
Luckily, converting USD to CAD is pretty simple.
Use a Currency Calculator
When you’re ready to convert currency, using a currency conversion calculator is a smart way to estimate how much you’ll spend. Since exchange rates fluctuate on a daily basis, using a calculator can ensure your math is accurate.
Keep in mind that exchanging currency often comes with fees attached, which calculators typically don’t include. For instance, most credit card processors and ATM networks typically charge a 1% conversion fee on all foreign transactions. Individual merchants may also charge additional fees if you ask them to convert a purchase price to your home currency at the cash register.
How to Buy Canadian Dollars
Once you’ve done your conversion, the next step is figuring out where to make the exchange. Typically, you can save on fees if you plan ahead and exchange your currency before you get to Canada. Here are three of the most affordable options:
- Exchange at a bank or credit union before your trip: Visiting your local bank is likely the most cost-effective way to convert currency. Since you already have an existing relationship with them, they’ll give you the best exchange rates and charge you the fewest fees. However, the fees often depend on where you bank and the type of account you have. For example, if you have a checking account or savings account with Bank of America, you won’t have to worry about paying exchange fees on online currency orders. However, if you order less than $1,000 USD, a shipping fee of $7.50 will apply.
- Use your bank’s ATM abroad for withdrawals where possible: If you need to exchange more currency while out of the country, do your best to find an in-network ATM. Often, you’ll be charged fewer fees for the transaction. For example, Scotiabank, one of Canada’s biggest banks, is a member of the Global ATM Alliance. If your bank is also a member of the alliance (Bank of America is, for example), you can withdraw cash fee-free at a Scotiabank ATM. Most banking apps also have a “ATM locator” feature to help you find your closest option.
- Order currency online: You can also get currency shipped to your door through third-party websites. However, be aware that these websites often charge high fees. For example, while Currency Exchange International (CXI) boasts that it doesn’t charge an exchange fee, you’ll need to pay up to $30 for overnight shipping. Make sure to do your research and read online reviews in order to ensure that any website you use is reputable.
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Wise – Multi-Currency Account
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What to Avoid When Exchanging Currency
- Exchanging currency at the airport: While exchanging currency at the airport may seem convenient, you’ll pay handsomely for the privilege. Those airport kiosks tend to offer some of the worst exchange rates and charge some of the highest fees.
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