If you’re planning a trip to the U.S. in the near future, you may want to exchange some of your money into dollars, the country’s official currency. The international symbol for the currency is USD.
U.S. dollars may also be accepted outside of the U.S. including in Vietnam, Costa Rica, Peru and certain parts of Mexico.
This post has everything you need to know about converting CAD to USD, including where to secure the best exchange rates and how to avoid paying high fees on your conversion.
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How to Convert CAD to USD
Fortunately, converting Canadian dollars to USD is fairly simple. You can make the conversion using a calculator or you can do it by hand.
1. Use a Currency Calculator
Using a currency conversion calculator is often the easiest way to get an estimate when you’re converting currency. Since exchange rates fluctuate on a daily basis, using a calculator can ensure your math is correct.
Keep in mind that exchanging currency often comes with added fees that a conversion calculator won’t be able to predict. For instance, credit card companies usually charge a 2.5% conversion fee on all foreign transactions, and ABM networks, which are called ATMs in the United States, may charge an additional flat fee. Individual merchants may also charge supplemental fees if you ask them to convert the price of an item to your home currency at checkout.
2. Calculate it Manually
The other option is to do the calculation manually using a simple mathematical formula. However, in order to do this, you need to know the current exchange rate. At the time of writing, $1 CAD is worth $0.76 USD.
Once you know that information, multiply the amount you have in CAD by the current exchange rate. The resulting number will show you the amount of U.S. dollars that you have to spend on your trip (however, be aware that this calculation doesn’t factor in any fees).
Manual Currency Conversion Example
Let’s say you have $500 CAD and would like to figure out how many U.S. dollars you have for a trip to the United States. Using the current exchange rate, the formula for your conversion would look like this:
$500 CAD x 0.76 = $380 USD
How to Buy US Dollars
When you’re ready to buy USD, it’s a good idea to plan ahead to ensure that you pay the fewest fees. Here are three ways to get the currency you need while minimizing the fees you’ll be charged:
- Exchange at a bank or credit union before your trip: Heading to your bank before your trip is often the most cost-effective way to exchange currency. Since you have an existing relationship with them, your bank is likely to give you the best exchange rates and charge the lowest fees. For example, the Royal Bank of Canada doesn’t charge its account holders an exchange fee. However, you may be charged a fee if you wish to have the currency shipped to your home. At the National Bank of Canada the shipping fee is $10.
- Use your bank’s ABM abroad for withdrawals where possible: Similarly, if you need to exchange more money while you’re on your trip, try to find an in-network ABM/ATM. For example, Scotiabank’s Global ATM Alliance allows you to use Bank of America ABMs in the U.S., with waived fees for certain customers. Most banking apps have an “ABM locator” feature to help you find the closest option, and using an ABM affiliated with your bank can help you avoid excess fees.
- Order currency online: If your bank doesn’t offer online shipping, you can also use a third party to get currency delivered to your door. However, be aware of inflated costs with some of these vendors. You may have to pay an exchange fee, shipping costs or other charges.
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What to Avoid When Exchanging Currency
- Exchanging currency at the airport: While exchanging currency at the airport is unquestionably convenient, airport kiosks often offer some of the worst exchange rates while charging some of the highest fees.
- Currency exchange stores and kiosks: You may find currency exchange stores or kiosks that look like ABMs located near hotels or in tourist areas. Still, you’ll likely pay a premium to use one of these convenient locations.
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