Last Updated on October, 2024
So, you have planned a trip to the UK and are wondering whether you need to have some British Pounds in cash before you depart or use your cards after your arrival.
Now, there are a few options that you can explore in this regard. This comprehensive guide will assist you in making the right decision based on your preference while taking into account the exchange rates and fees.
We’ll list down some best options that enable you to get your British Pounds in the US using your travel money card, such as Wise. Plus, we’ll also guide you on how to withdraw cash using an ATM in the UK without any extra fees.
The options that we’re listing below have their pros and cons, and we’ll shed some light on them to help you make the right decisions before your trip.
So without any further ado, let’s get to it.
Quick Summary
Multi-currency accounts, such as those offered by Wise, are highly recommended for getting British Pounds before traveling to the UK. They provide the best exchange rates and allow easy management of multiple currencies.
It’s advised to withdraw cash from ATMs in the UK using a travel debit card to avoid high fees and unfavorable exchange rates often associated with credit cards and money changer kiosks.
Conventional banks, airport kiosks, and money changers are not recommended for currency exchange due to their high fees and less favorable exchange rates compared to modern fintech solutions like Wise.
Contents
Best USD to GBP Conversion Options
| Services | Exchange Rate | How Much USD 1,000 Will Get You? |
| Wise | 0.7809 | ~GBP 775 |
| Wells Fargo | 0.7490 | ~GBP 749 |
| Exchange of America | 0.7099 | ~GBP 710 |
Top 6 Best Places in the US to Get British Pound
When it comes to getting British Pounds, there are various options. But we have listed down the six best, so, no beating about the bush here.
With the options mentioned in the list here, you’ll get the best exchange rates without having to spend unnecessary fees on your trip. So let’s get cracking.
1. GBP Travel Money Card
Okay, so first up is a GBP travel money card. These cards are prepaid debit cards that enable you to hold British Pounds or any other local currency of your destination.
This way, ATMs or any other point-of-sale devices will deal with you as a local cardholder. You just need to top your card balance up using US Dollars and convert it into British Pounds. You’re just using your card as a local, and that’s true convenience.
Wise is one of the most popular options here you can go for. Just apply online for their digital account. You just need your photo ID for that and your account will be opened.
Just top up your account with cash, and you can use it in different currencies according to your needs. You can withdraw using any local ATM in the UK and leave any excess amount for the next trip.
In the UK, your Wise card will take 2 to 6 days to deliver, while in the US it takes 2 to 3 weeks. Wise is by far the best in terms of providing exchange rate benefits if you compare it with banks or any other kiosk service.
You can download the Wise app, sign up, and use its virtual cards on your smartphone, which facilitates even further. Now, unlike a bank or credit union or any other foreign ATMs and airport kiosks, Wise is fully transparent when it comes to exchange rates of foreign currency when you’re looking to convert.
Moreover, with Wise, you’ll have a multi-currency account. And with this multi-currency account, you’ll get the same exchange rate from Wise that you see on XE or Google.
Instead of earning from exchange rates, Wise charges a small commission that ranges between 0.35% and 2.85%, which is lower than the industry standards and your account handles multiple currencies.
2. ATMs Abroad Using Travel Debit Cards
Another option you can go for is to use ATMs abroad with your travel money card without any foreign transaction fees. Now, why do we recommend this? Because using credit cards will cost you higher cash advance fees and APR on any ATM withdrawals.
Moreover, with debit cards, you’ll get exchange rates that come from your card network, such as Mastercard or Visa. And this exchange rate is quite close to the mid-market rate.
Foreign transaction fees are fixed (around 2.5%) and card networks apply it to the overall purchase price. Of course, these fees will continue to go up as you travel and start spending abroad.
Therefore, you need to have a travel debit card that can waive any foreign exchange transaction fees. Also, keep in mind to always pay in local currency.
For example, if an ATM in the UK asks you to either pay in British Pounds or US Dollars, choose to pay in GBP and you’ll be able to avoid foreign transaction fees more effectively.
3. Online Foreign Currency Exchange
These services come in handy if you can order your cash in advance a few weeks earlier. But again, keep in mind not to pay using your credit card.
This is because your card issuer will treat this transaction as a cash advance. This will result in APR and fixed fees. When you order your British Pounds online in cash, these online forex services will apply a couple of fees.
One is the exchange margin that these service providers will apply. This rate is less than the original mid-market rate, and they will keep any difference between the two, which is called exchange rate margin. The second fee is the commission, which is a percentage of the amount that is to be converted.
Generally, most service providers allow you to visit their local branch to pick up your cash for no additional charges. But if you’re looking to avail home delivery service for more convenience, you will be charged a delivery fee.
You can set the day and time, provide them with your address, and have your cash delivered to your doorstep. Western Union, Wells Fargo, CXI, and similar options are available for this.
4. Money Changer Kiosks
Generally, this service charges a high exchange margin, just like a conventional bank, a credit union, or even an online forex service. We’ve already talked about online forex services and will talk about airport kiosks and conventional banks after this.
Now, even if these money changer kiosks advertise “no commission” (and they generally do that) and accept different cards, you’ll still end up dealing with some hidden charges under the exchange margin.
These kiosks might be conveniently available all over tourist destinations and cities. But we recommend you go to bank ATMs instead and use your prepaid travel card.
5. Airport Kiosks
Let’s talk about airport kiosks. These kiosks might be convenient in the US if you’re looking for a last-minute forex transaction.
But you’ll have to deal with huge fees under the exchange margin, as in the case of money changer kiosks. Therefore, it’s better to stay away from these kiosks as well.
6. Conventional Banks
Of course, conventional banks and credit unions are pretty common, yet they are outdated service providers when it comes to forex.
In recent years, most banks have started to provide online forex services. But you need to be their account holder to avail of this service. You can either pay by card, cash, or your existing account balance.
Now, conventional banks might be an option, but we don’t recommend going down this route. Why? Well, we have found that Bank of America converted EUR 1,000 into USD 1010.60. The same transaction of EUR 1,000 with a service, such as Wise, will get you USD 1065.60 with a reduced mid-market exchange rate.
It means that Bank of America’s markup was a whopping USD 53. Doesn’t work for us when there are so many better options available that don’t make you spend huge fees.
Relevant guides:
Final Word
There is a broad range of options to purchase GBP in the US before travel and after arrival in the UK. But each of them has its pros and cons. It all depends upon the method you choose before your trip.
But to get GBP in cash, there are two options you can explore; ATM withdrawals and multi-currency accounts. You can use ATM withdrawals once you have arrived in the UK. Whereas multi-currency accounts, such as Wise, are better if you’re looking to manage your cash in multiple currencies.
These two options provide you with the best rate, and you get the best value for your cash as well. Therefore, you need to plan your next trip accordingly.
Also, keep in mind to always spend in local currency. Because paying in USD in the UK is not feasible. And this spending trend is not just limited to the UK.
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