Buy US Dollars (USD) Always at the Best Rate

Where is the best place to buy US dollars?

If you like the reassurance of having the local currency readily available from the moment you step off the plane, you have three options to pick up the cash before you go:

• Buying foreign currency online and either collect it in-store or have it delivered to you.
• Collect from a currency exchange store.
• Most expensively, buy the currency at the airport.

Online money changers like S Money are often an easy and cheap way to buy USD online but it may not necessary be as quick as walking into a store. Companies like Travelex also offer a foreign exchange service online but it takes between two and five business days before the currency is ready for pick-up or delivery so you need to be organised!

Alternatively, buying your currency in-store can be a good option but it all depends on where you go. The money changers in the centre of the main cities like Sydney or Melbourne tend to be more competitive than smaller stores in the suburbs.

Only change money at the airport as a last resort. The exchange rates and fees at Australian airports are among the worst in the world so avoid it at all costs if you want to get the best bang for your buck.

Learn more: The Best Places to Buy US dollars Australia

Should you buy US dollars now or later?

As a rule of thumb, if you are buying USD with Australian dollars, you want the AUD/USD exchange rate to be as high as possible. The higher the rate, the better it is for you. It means that you will receive more American dollars for the same amount of Australian dollars.

Unfortunately there isn't a particular day of the week or time of the day that is the best time.

While it's impossible to pick the perfect time, you can set up a free rate tracker to keep an eye on the rate.

Also keep in mind that if you buy it online, it may take 2-4 business days to arrive so make sure you finalise your financial transaction at least a week before you are due to travel overseas.

Learn more: When is the best time to buy US dollars with Australian dollars?

How much US dollars do you need?

It’s not an easy task to figure out how much spending money to take to the USA. The United States keeps you on your toes with every American state (and sometimes even individual cities within states) imposing its own tax rates and rules.

Those rates and rules will affect everything you buy, from your Statue of Liberty souvenirs to tickets to a baseball game. In Montana, for instance, there’s no sales tax. But in Louisiana, it’s 10%.

All of that means there’s no standard budget you can apply to every state. On top of that, how much you spend will depend upon the length of time you’re away and how you prefer to travel.

So the first steps to calculating your spending money budget is to figure out:

• How long you’re staying for
• How you plan to travel
• Where you want to go

If you are confused about how much money to take to the USA for 1, 2 or 4 weeks, read our detailed review to answer all your questions.

The cheapest ways to buy US dollars

If you are heading overseas or just want to purchase some US dollars to keep on hand, it's important to find the best way to exchange your money. Here are 5 top ways currently available in Australia

1. Online - The cheapest way to buy US dollars under $10,000 is online. It's similar to buying anything else online but you will need some ID on hand. Online money changers, like S Money, have the best exchange rates. Most will either deliver it to your home or allow click and collect. For amounts over $10,000 the cheapest way is to go in-store.
2. In-store -  this is one of the best ways to get your currency fast. Just locate a store near you and bring your ID. It's a good idea to call ahead to check their rates and to make sure they have enough banknotes in stock.
3. Overseas - Sometimes it can actually be cheaper to buy your US dollars abroad. Countries like Singapore have very competitive money changers if you are willing to go out of your way to find them.
4. International money transfers - If you are sending money from Australia to the US, using a money transfer service like Wise or OFX is a great way to convert your currency. These online services are a much cheaper option than using an Australian bank.
5. Travel money cards - These cards used to have terrible exchange rates and a heaps of hidden fees. While this is still the case with most bank travel cards, there are much better options available. These include Revolut and Wise.

If you are heading overseas, it's handy to carry some US Dollar cash with you along with your debit, credit or travel card. Here are 5 common things you may need cash for:

1. Tipping - Having small denominations like 1 dollar or 5 dollar banknotes makes it so much easier to show your appreciation.
2. If your card doesn't work - If your card gets frozen by your bank while you are overseas, having some cash on hand to get you through a few days until the problem is fixed is always handy.
3. Markets -  One of the best local experiences is heading down to a market. A lot of vendors will have card facilities but many will only accept cash.
4. Tours - A great way to see a new city is to take a tour. Some of these "Free" walking tours still rely on a cash tip at the end of the day.
5. Cash only - Some shops and venues just aren't set up for cards. This could be anything from the local ice cream truck, a local bus or even a toilet!