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Bank of America Exchange Rates Explained and Compared

In this article we take a look at Bank of America exchange rates & international money transfer services compare to other options available to you.

Whether you’re looking to exchange US dollars to a foreign currency for a holiday abroad or you’re travelling to another country for business, you may need to be aware of the processes involved in foreign exchange transactions.

Bank of America (BOFA) offers a wide range of services aimed to cater for your foreign exchange and money transfer requirements. Foreign cash and international wire transfers are the products offered by BOFA that we compare below.

History

Founded in San Francisco in 1904 as the Bank of Italy by Italian-American Amadeo Giannini, Bank of America is now one of the most valuable banking brands globally and one of the leading banks in terms of assets and market capitalization. In 1958, Bank of America introduced a credit card – BankAmericard – which was later rebranded as the VISA card. Headquartered in Charlotte, North Carolina, Bank of America now operates in more than 40 other countries, in addition to operations across all 50 states in the US.

If you need information on Bank of America foreign exchange rates and how to send money overseas from the US, then read on.

From this article, you will

  • Find the precise exchange rate as per your requirement.
  • Calculate currency conversion by using Bank of America exchange rates.

 

The components that decide the Bank of America exchange rates

Bank of America determines its exchange rates based on factors like the exchange rates charged by other parties, desired rates of return, market risk, credit risk and other market and economic factors.

The components that determine the Bank of America foreign exchange rates for a currency are:

  • The currency in question.
  • What you want to do with the currency – buy or sell.
  • Option chosen (cash or wire transfer).

The table below lists Bank of America foreign exchange rates of a few selected currencies against the US dollar as of 17th July 2018. You can use this table to understand their exchange rates.


 

Currency

If you are travelling to the UK, you’ll need GBP, and if travelling to Japan, you’ll need JPY. Once you know which foreign currency you need to buy or sell, you will have to check the rates relevant to that currency. So, if you are travelling to the UK, check the row showing rates of GBP and if travelling to Japan, check the rates of JPY only.

Bank of America Foreign Exchange rates are available online throughout the day.

Type of transaction

Once you’ve decided upon the foreign currency you need, the next step is to decide what you want to do with it. So do you want to buy or sell it?

If you’re looking to convert from USD to any other foreign currency, check the Bank of America exchange rates for buying foreign currency found under the column – ‘Today’s exchange rate’.

If you have surplus foreign currency with you that you need to convert it back to USD, you’ll have to refer to the rates under the column ‘Today’s exchange rate to order currency’.

Please note that the conversion from USD to a foreign currency or vice versa will be at different cross currency rates. That is, for 1 USD, you get GBP at one rate, and when converting back from, you get USD at another rate.

Option chosen

Another factor that determines exchange rates is the option that you chose to meet your foreign currency needs. If you have a checking or savings account with Bank of America and order up to $1,000 in foreign currency, the cash will be delivered to your home address. You can order up to a maximum of $10,000 in foreign currency over 30 days.

Bank of America also offers the flexibility to do a wire transfer in the local currency of your destination along with an option to lock in the exchange rate in advance.

How much currency will my money buy?

The following formula can be used to calculate how much foreign currency you will receive:

US Dollars with you*exchange rate = Currency you will receive

For example, if you have 1,000 USD and you wish to buy GBP at a rate of 0.76 then the amount of GBP you will receive is 76 (100*0.76 = 76).

How much USD would you require to buy a certain amount of foreign currency?

In a situation where you know the exact amount of foreign currency you need, you can find the cost in USD by using the following formula:

USD required = Amount of foreign currency you need/exchange rate

If it’s GBP you need and the requirement is 1,000 GBP and the exchange rate is 0.76, then the amount of USD you’ll have to pay is 1,315.7 USD (1000/0.76 = 1315.7).

If you want to send a specific amount of currency aboard, the situation is the same as buying travel money.

The formula for calculation would be:

USD required = Amount of foreign currency you need/exchange rate

How to calculate the value of currency received from overseas?

You can use this formula to calculate how much you will receive in USD while receiving foreign currency from overseas:

Amount of foreign currency received/exchange rate = USD received

If you’ve received 1,000 GBP through bank transfer while the exchange rate was 0.76, you’ll receive 1,315.7 USD (1000/0.0.76 = 1315.7).

Are there any hidden costs?

There is a cost attached to money transfers that is dependent on the type of transfer.

  • A fee of $30 for outbound domestic wire transfers.
  • A fee of $35 for outbound international wire sent in foreign currency.
  • A fee of $45 for outbound international wire sent in US dollars.

Additional fees may be imposed by an intermediary or recipient bank who handles the transaction along the way. Also for any amendments, cancellation or for tracing a payment, a fee may be charged.

A delivery fee of $7.50 is charged on all foreign currency orders less than $1,000; this fee is waived on orders of $1,000 or more.

Time taken to do an international wire transfer through Bank of America

The turnaround time for an international money transfer depends on the country of the target account. The credit to the beneficiary can happen in anything from one to two business days.

Using your Bank of America ATM card, Bank of America Credit/Debit cards abroad

You can use your Bank of America ATM or Debit card in a foreign ATM or use your credit card with a foreign merchant. However, an international transaction fee applies. For more details, contact Bank of America Customer Service.

The exchange rate for international purchases and foreign ATM transactions is set by Visa® or MasterCard® (depending on your card) and is set as per the wholesale market rate or a government-mandated rate on the day before the date the transaction is processed.

 

Bank of America Reviews

Most customers rate Bank of America highly for their foreign exchange services.  Their highly competitive exchange rates for a number of major currencies along with the professional approach of the customer service team were appreciated by many. Another important aspect highlighted by many customers was their secure and convenient international wire transfer to more than 200 countries.

For more information on Bank of America exchange rates and international money transfer services, click here.

 
Please note that the opinions of our authors are their own and do not reflect the opinion of Best Exchange Rates and should not be taken as a reference to buy or sell any financial product.