Exchanging currency at the cheapest rates without paying huge fees means savings on your travel budget. Many cost-effective options for foreign money exchange like your home banks and online currency exchange platforms offer the most competitive exchange rates. Withdrawing local currency from ATMs lets you save a considerable amount of money. Also, remember to avoid airport currency exchange as they often have higher fees and less favourable rates. To know more about the cheapest currency exchange that will help you save money, continue reading this blog further.
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Where is the Cheapest Place for Currency Exchange?
Various banks offer currency exchange services to their customers at the cheapest rates. You don’t have to pay huge fees and commissions. Besides banks, credit unions also offer the cheapest currency exchange. They are not-for-profit organisations and will exchange your currency before and after your trip if you have a checking or savings account with them.
Dedicated Credit Unions like the Western Union offer better rates as compared to other platforms. You may be able to order currency at a branch location, by phone, or online to have it delivered to you or picked up at a branch. To get the best deals possible, let’s explore the best places for the cheapest currency exchange in detail-
Banks
Most banks offer currency exchange services to their account holders and sometimes even to non-account holders. They are a reliable option for currency exchange. They typically offer competitive rates and customer support.
Major banks like HDFC and Axis Bank provide forex services where you can buy foreign currency in various denominations. They may charge a fee or commission for the service. To exchange currency with the banks, you can visit the local branch of your bank and request a currency exchange.
- Make sure to carry a valid ID (passport, driver’s license) as it’s usually required for the exchange.
- You must inquire about the current exchange rate and any fees or commissions they might charge.
Here’s a list of Indian Banks providing the cheapest currency exchange rates-
| Banks | Exchange rate fees charged |
| ICICI Bank | Up to USD 1000 – USD 4 fee Above USD 1000 – zero fees |
| SBI | INR 250/-Exchange rate as applicable |
| Axis Bank | Upto USD 500- INR 200 + applicable taxes Upto USD 10000- INR 300 + applicable taxes Above 10000- INR + applicable taxes |
| HDFC Bank | No charges, only GST is applicable |
You can explore the Forex rates of popular banks below in the table-
| Canara Bank Forex Rates | Indian Bank Forex Rates |
| Bank of Baroda Forex Rates | HSBC Forex Rates |
| PNB Forex Rates | Kotak Forex Rates |
Also Read: Learn all about how foreign remittance transactions work and what are the processes of inward and outward remittance.
Forex Dealers/ Online Forex Platforms
These are specialized businesses that primarily deal with foreign exchange. They often offer competitive rates and various currencies. To exchange currency with Forex dealers, look for reputable dealers in your area or online.
Some of the best forex dealers providing the cheapest currency exchange services are- BookMyForex, Thomas Cook, and Orient Exchange. Compare their rates and services and read reviews or ask for recommendations to ensure reliability. They may also require identification and sometimes additional paperwork for larger transactions.
- BookMyForex: This platform provides a user-friendly interface where you can book currency online and have it delivered to your doorstep. They offer features like rate alerts and the ability to lock in rates for a short period by paying a refundable deposit.
- WSFx Global Pay: Known for competitive rates, WSFx also offers doorstep delivery and no hidden charges. Their website displays live exchange rates, allowing you to secure the best possible deal.
- Orient Exchange: This service provides live market rates and allows you to book online or visit a branch. They also offer a rate block option, ensuring you can secure a favourable rate for a short period
RBI-Licensed Money Changers
Licensed money changers are another alternative. They are widely available in major cities and towns and do not require a bank account for transactions. It’s crucial to ensure that the money changer is authorized by the Reserve Bank of India (RBI) to avoid counterfeit currency risks.
Ordering Currency Online
Several online platforms allow you to order foreign currency and have it delivered to your home or a designated pickup location. They might offer competitive rates and convenience.
- Airport currency exchange rates are extremely unfavourable due to higher fees and commissions.
ATMs
Using your card abroad can often be more convenient and offer better rates than exchanging cash. Just be aware of foreign transaction fees charged by your card issuer. Thus, using cards at ATMs in your destination country can often provide you with local currency.
However, be mindful of ATM fees and currency conversion charges from your bank. It is always advisable to withdraw a substantial amount from the ATMs and every transaction is charged.
Always be cautious about where you exchange currency and compare rates and fees across different options to get the best value. Carry out transactions at reputable places to avoid scams or poor exchange rates.
It is advisable to use a Zero Forex Markup card that doesn’t charge any additional fees for the currency conversion when you make any transaction.
- For example- if you want to withdraw 80 USD, the currency conversion fee is waived which allows you to make transactions at current exchange rates without paying extra charges.
Documents Required for Cheapest Currency Exchange
To exchange currency online in India, you will need to provide specific documents to verify your identity and comply with regulatory requirements. Here’s a detailed list of the necessary documents for both buying and selling foreign currency:
Documents for Buying Foreign Currency
- Valid Passport: This is mandatory for all transactions.
- Visa: A valid visa for the country you are travelling to (not required for countries offering visas on arrival).
- Confirmed Air Ticket: This should indicate travel within 60 days of the currency exchange.
- PAN Card: The Permanent Account Number card is required for identification.
- Aadhar Card: While not always mandatory, it can serve as additional identification.
Documents for Selling Foreign Currency
- Valid Passport: Required for transactions exceeding INR 25,000.
- PAN Card: Necessary for identification
- Additional ID: You may also need to provide one of the following:
- Driving License
- Voter ID
- Aadhar Card
These documents are part of the KYC (Know Your Customer) requirements set by the Reserve Bank of India (RBI), ensuring that all currency exchange transactions are legitimate and traceable.
How Does Currency Exchange Work?
Currency exchange refers to the process of converting one country’s currency into another based on its relative values. It operates through foreign exchange markets where currencies are bought and sold. The exchange rates are determined by the supply and demand of a particular currency. The value fluctuates constantly due to various factors like economic indicators, geopolitical events, interest rates, and market sentiment.
If you are a student studying in Japan to pursue higher education, you will have to buy Japanese currency against Indian rupees. The amount of Japanese Yen you will get in hand depends on the currency exchange rates.
Banks, financial institutions, and specialized currency exchange services facilitate these transactions. When you exchange currency, you will receive an amount equivalent to the prevailing exchange rate minus any fees or commissions charged by the service provider.
For example- 1 INR = 1.70 Yen. This means you will get 1.70 Yen against 1 Indian rupee, and 1000 INR will give you 1700.60 Yen.
Also Read: Wondering Why Your Education Loan got rejected even after a Good Credit Score? Check our blog and learn about the factors that can lead to this situation.
FAQs on Cheapest Currency Exchange
You should always avoid exchanging currency at the airports as the exchange rates are usually very high. They take advantage of last-minute currency exchange by travellers and mostly have high commissions to cover their operating costs and profits.
Yes, you can exchange currencies at any bank or credit union and get the cheapest currency exchange services from them, with reasonable exchange rates and the lowest fees.
Some banks such as Citibank and Bank of America may not charge a fee and will provide options such as conducting the transaction online or even mailing you the currency.
Yes. SBI offers currency exchange in bureaux de change, in their stores and online.
Many travel credit cards offer fee-free foreign transactions. This can save you money on currency exchange fees, as well as help you avoid overpaying for currency exchange.
Online platforms like BookMyForex and ExTravelMoney offer the best rates compared to other options for the cheapest currency exchange.
This was all about how currency exchange works and what places can help you with exchanging currency when you have travel abroad plans. While Banks and Credit Unions are the cheapest currency exchange places, always avoid exchanging money at airports and hotels because of high fees and commissions.
This was all about currency exchange in Cork, Ireland. To know more about the best bank accounts for students, education loans, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 and ease your study abroad experience.
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