(Posted at OOMF in a thread about Canadian Cashing in, but good advice for all)
Here are some thoughts about cashing-in, etc......(from my friend..emailed to me early this morn)
The thing to watch for and ask the bank is how much is their spread. If you look like you don't know anything about spread they might charge you for the biggest spread. You want a small spread. Be sure to ask about any other charges or fees. Just say, "If I give 100,000 dinars, how much in Cdn dollars will be in my bank account (or pocket)." If we are told the rate is 3.52 you should get close to $352,000 in your account. If the spread is 2¢ (acceptable), you should end up with 350,000. But if the spread is 20¢ (not good), you would end up with $332,000. Notice the difference. They just pocketed $20,000 of your money.
When you go into the bank to cash in, have it in your mind that if things don't go the way you had hoped or want them to go, that you will leave the bank and go think about any new info they have just given you. You put yourself at a disadvantage if you just have to cash it in TODAY. Just tell the person that you want to think about this. I'll come back tomorrow.
You can also bargain with the bank. If they seem to be taking advantage of you, you can say to them very nicely, "Do you want my business or not?" You can always deal with a different bank, you know.
If you are just cashing in one note, you won't be able to do much bargaining and you can choose to take what they give you ...for now. Or if you don't mind them knowing, you can say that when you cash-in your entire wad, you won't be a milllionaire but a MULTI milllionaire and that they should consider not charging you ANY spread. If they say they can't do that, you can simply say, there must be banks who would do that.
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You have to be prepared to leave without cashing in TODAY. If you want to cash in so bad you can taste it, you might get taken or you might make rash, impulsive and dumb
decisions. You should always go home and think about any new information. With some things, you can decide then and there. But if it merits more thought, go home and think about it. You've waited this long, one more day won't hurt you. You can alway negotiate things better if you don't have to do it TODAY.
Here's a little story about myself.....
I was working for a company for a while and they were slow in giving raises. So I thought about asking them to give me a raise. I felt that if they did not cooperate, I should walk off the job then and there. So finally, I made up my mind that that is exactly I would do if they refused me a reasonable raise. As luck would have it, they called me into the office and told me they were going to give me a raise ...a piddly
little raise. So I said, "You know, I have been thinking about a raise myself and what you are offering is not enough. I told them what I wanted. They said they would give it to me in two increments ...half now and the other half in 6 months ....so I took it. The point is if I had not been ready to walk off the job (quit), I would have ended up with a
much smaller raise. I wouldn't have negotiated as well. It's the same thing with the bank and other things.
I have also been in situations where I did not think about what I would do and when the tables were turned on me, I was not prepared to let go and come back the next day
or whatever. I'd get home and ask myself why didn't I just back away. It was because I had not prepared myself mentally.
Another thing, don't commit to leaving all your funds with them. You might be sorry down the road if a good deal arises.