US vs AUD Dollar: Tips for Minimizing Fees When Converting Currency

When traveling abroad, converting currency can be a daunting task, especially if you're not familiar with the exchange rates and fees involved. If you're planning a trip to the United States from Australia, it's essential to understand how to convert your Australian dollars (AUD) to US dollars (USD) without incurring excessive fees.

Use Your Bank's ATM Abroad

One way to get cash abroad is by using an ATM affiliated with your bank. For instance, Westpac customers can withdraw cash at Barclays, Deutsche, and Bank of America ATMs without paying any fees. Additionally, many banks have global ATM alliances that allow customers to make withdrawals without incurring a fee.

Find In-Network ATMs

If you need to exchange more money while abroad, try to find an in-network ATM. For example, Commonwealth Bank charges 1% of the transaction amount (with a $10 order minimum) if you buy or sell from a Commonwealth Bank branch. Since you have an existing relationship with your bank, it's likely to give you the best exchange rates and charge lower fees.

Exchange at a Bank or Credit Union Before Your Trip

Another option is to exchange currency at a bank or credit union before your trip. This can be the most cost-effective way to get the currency you need while minimizing fees. Here are three ways to do it:

1. Use a Currency Conversion Calculator

A currency conversion calculator can help you estimate the correct amount of USD for your AUD. You can either use an online calculator or perform the calculation manually using a simple mathematical formula.

2. Calculate the Conversion Manually

To calculate the conversion manually, multiply the amount of AUD you have by the current exchange rate. At the time of writing, 1 AUD is worth 0.65 USD. For instance, if you have $500 AUD and would like to figure out how much USD that is, multiply $500 by 0.65.

3. Use Your Credit Card

Individual merchants may also charge supplemental fees if you ask them to convert the price of an item to your home currency at checkout. However, credit card companies and ATM networks usually charge a 1% conversion fee on all foreign transactions.

Keep in Mind Additional Fees

Exchanging currency often comes with added fees that a conversion calculator won't be able to predict. Since exchange rates fluctuate daily, using a calculator can ensure your math is correct.

By following these tips, you can minimize the fees associated with converting AUD to USD and enjoy a stress-free trip abroad.

Us v aud dollar