Bank draft

americano1

I’m buying a car up north, and I wish to get from the bank, a bank draft (in sterling) from my current account (in euro).

The current rate for sterling through google is €1=0.88p. Will the the bank give me this rate when taking out the money for the bank draft?

I placed a deposit for the car earlier on using my debit card and I noticed the money was deducted at the worst rate of €1=0.81.

So naturally I’m curious about this exchange rate difference as the 0.81 rate would cost me hundreds more than the 0.88.
Will the bank exchange my euro at the 0.88 rate in writing the bank draft or will I still be charged at the 0.81 (worst rate); or was the 0.81 rate to do with his own business exchange rate.

Can anyone explain why my deposit was taking from my debit card at such a low rate?

sonyvision

I would say your exchange rate would be 2/3p lower the google exchange rate. The bank will make their money.

You could lookup your banks website should give you the exchange rates which can vary depending on the value

RossieMan

That is purely a paper exchange rate, it doesn't exist anywhere for using. It's always at least 2 or 3 cent worse off.

How can you place a deposit with your debit card? I assume it's a business you're dealing with then and not a private sale? Always chose a bank transfer if it's with a legit business.

americano1

RossieMan wrote: »

That is purely a paper exchange rate, it doesn't exist anywhere for using. It's always at least 2 or 3 cent worse off.

How can you place a deposit with your debit card? I assume it's a business you're dealing with then and not a private sale? Always chose a bank transfer if it's with a legit business.

Would a bank draft not be the same? Means I get the exchange rate the bank offers (euro to sterling) and then give him sterling as opposed to his business rate of 0.81.

coylemj

His 'business exchange rate' sounds like a rip-off, how did you manage to let him do the conversion?

Did you pay him in sterling with your debit card or did he present you with the machine (to enter your PIN) with the amount already converted to euros?

The golden rule is that you always pay a vendor in his own currency and let the bank or credit card company do the conversion.

CiniO

americano1 - In short bank have very poor exchange rates, and that includes all services like credit/debit card payments, bank drafts, cash exchange, etc...

If you want to be as close as possible to your google exchange rate (which is average between buying and selling) use third party currency exchange company.
There's few around the market with currencyfair and transferwise being quite popular with Irish customers.