Exchange Rates Basics: Spreads, Fees, and Why Your Bank Rate Differs

Headline rate vs the rate you get

Banks and providers usually apply a spread and may add fees. That’s why your effective rate differs from a mid-market headline rate.

How to plan

1. Pick a reference rate
2. Add a spread estimate (1–3%) plus fees
3. Use the manual FX tool with your all-in rate
4. Compare providers for large amounts

Bottom line

The all-in cost matters more than the headline rate.

Quick recap

• Compare scenarios side-by-side using tools.
• Build buffers to survive rate and cost shocks.
• Confirm exact numbers and rules with official sources.

Suggested next step

Open Rate-Change Impact and run a +1% and +2% scenario. Then use Budget Buffer to set a buffer target that fits your income.