Buying Euro traveler's checks in the US for India

gqsmoothie

I tried to post this in the "India for Beginners" forum but I couldn't get access to that forum....anyway...

I am an American and I will be leaving for India at the beginning of Sept and be there till Dec. With such a weak USD I was thinking of buying around $1,000 USD or traveler's checks in Euros which will be around $640 Euros. If I do buy them should I get American Express, Thomas Cook, or another type?


Is this a good idea? Pointless idea?

Should I even bring traveler's checks? I've heard some people say bring them for a backup, others say that they're not worth it cause they are hard to cash, and yet some say they love using them.

any thoughts y'all?

Darmabum

you'll get every answer. All those answers were true for somebody. I still take 'em. Been taking them since '82 . . . I've never had trouble cashing them, but then I tend to stick around larger cities. I'm also not fond of electronic banking, especially in another country, and have seen many people have problems with that form of money/banking. I mainly have them as a type of money I can recoup in the event of theft (though in almost three years of travel in India, I've never had a problem with theft) . . . robbery yes, as in rickshaw prices, Taj Mahal admittance, etc )

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ananda2193

I always travel with them. Never had a problem cashing them. For me it's security against theft. Don't know if buying them in Euros is really going to save you money. I know that the dollar is going up against the rupee now. Hopefully will be higher by September (sorry Indians, but...). Definitely don't take alot of cash. And I think American Express are probably the most widely known one's in India. I always travel with AE or Visa. And if you belong to AAA, their free here in the States.

wonderwomanusa

I certainly wouldn't exchange $$ for Euros as it only adds another fee to the 1% you'll pay for the checks (unless Amex or your bank give them free).

Five years ago, I carried checks, a couple hundred dollars in cash, and my ATM card. I mostly used the ATMs, taking out the maximum each time.Other than that, I changed a $20 bill in a town that had no ATM, and used a check in Delhi when I went on a big shopping spree.

gqsmoothie

Thanks everyone. I'll just go with American Express TCs in USD.

Ananda,

My Mom is in AAA, you think I could get her to buy them? But aren't TCs in the person's name who buys them? I've never even seen a traveler's check, they look pretty much like checks, right?

wonderwomanusa

I think you'll want to buy them yourself.

The person who buys the checks is supposed to sign them upon purchase -- right there in the office. Then, when you use the check to purchase something, you sign then again .. and the signatures have to match.

ananda2193

I would call AAA and ask them if your mom can buy them for you. Probably not. And you fill in your name and sign it when you get them. Not sure if they'll let your mom leave w/o signing first. I would call or go with her. But I imagine you would have to be a member personally to get them for free. It only cost's around $40 for a years membership. And they look more similar to paper money really.

gqsmoothie

I just went to the American Express website to see how much the TC are. Didn't see the cost. Anybody know what the fee is, and is it a flat fee or a %?

edwardseco

I get mine free so I don't know. Call AMEX. Do keep in mind there are differences between brands for travellers checks. AMEX covers more losses, nobody covers what might be called stupidity losses like putting them in your check-in luggage..

ananda2193

Don't know, but if you have a bank account they might have them.

There's a AMEX office in Raleigh. Here's the info
http://www134.americanexpress.com/tr...inder&action=7

their number is (919)787-8083


http://www210.americanexpress.com/tc...tion&product=T

bearable

Bank of America in SF Bay Area issues them without any fee. Every time you sell or buy them, you pay a spread which is the difference between the bid/ask price. In addition, they may stick you with fees and/or commissions.

hfot2

We have always had great luck with AMEX TCs in India. In fact, we got a better rate of exchange at most FOREXes for TCs than for dollars cash [except for $100 bills in Kolkata] and perhaps a better rate than at ATMs. But that's hard to tell at the time, since you usually don't know exactly what rate you are getting at the ATMs and depending on your bank there is probably some sort of currency conversion fee connected with your credit or debit card.

Glad you decided against TCs in a foreign currency. You most likely would have another fee beyond the customary 1% and it might be more difficult to find TCs in foreign currency as well.

We just returned from Japan. Prior to leaving we researched purchasing TCs in yen which we used to do with no extra fee. The only bank in town which sells them now charges 3% additional - we used the ATMs and dollar TCs.

distaff half of hfot2

edwardseco

The problem with betting on currency swings is not just that it has be more than the cost of the exchange costs. The big problem for me is being right and the timing. I calculated once that I had lost as much as I had made. I shouldn't look at how much I could have made with better timing. I sold out of a position on Euros when it reached 1.51 because that was my long term estimate. Then it goes to 1.6. Ah well, at least I can make it up on my bet on Hillary getting the nomination. Its a sure thing I thought..

zoltan

The other thing to keep in mind is that even though the US$ has had varying exchange rates over the past few months, it's still one of the most tradeable (and known) currencies in India.

It's wise to stick with the things that will cause you the least amount of hassle.

Cheers
Zoltan

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Cayle

(Disclaimer - I'm paid in €)

Why in the world are you going to the hassle of getting € denominated travellers checks in the US? Have you been reading too many NYT articles lately about the € taking over from the $? Since neither is used in India, in both cases you'll be changing from €/$ to Rs. anyway.

In addition to the cost of exchanging currencies, there is what I call the "currency distortion field". If I see a pound of cheddar cheese (expensive import here) for 400 RS, it does not have the same effect of seeing that it costs eight dollars for a freakin pound of cheese and I'm more likely to buy it than if is was priced in $ or €. You probably won't have a good feel for Rs. Unless you have lived in Europe, you won't have a good enough feel for what you are spending in Euros either. Dollar denominated TCs will give you a sanity check.

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