Money

It's always advisable to bring money in a variety of forms on a vacation: a mix of cash, credit cards, and traveler's checks. You should also exchange enough petty cash to cover airport incidentals, tipping, and transportation to your hotel before you leave home, or withdraw money upon arrival at an airport ATM.

In many international destinations, ATMs offer the best exchange rates. Avoid exchanging money at commercial exchange bureaus and hotels, which often have the highest transaction fees.

Currency

The currency is the Bahamian dollar (B$1), pegged to the U.S. dollar so that they're always equivalent. (In fact, U.S. dollars are accepted widely throughout The Bahamas.) There is no restriction on bringing foreign currency into The Bahamas. Most large hotels and stores accept traveler's checks, but you may have trouble using a personal check. It's a good idea to exchange enough money to cover airport incidentals and transportation to your hotel before you leave home.

You can change currencies at a local American Express (tel. 800/807-6233; www.americanexpress.com) or Thomas Cook (tel. 800/223-7373; www.thomascook.com), or at your bank.

Be sure to carry some small bills or loose change when traveling. Petty cash will come in handy for tipping and public transportation. Consider keeping the change separate from your larger bills so that it's readily accessible and you'll be less of a target for theft. In general, prices are about the same as in urban America, but they are less expensive than costs in the U.K. Food is often more expensive, however, since so much of it has to be imported.

ATMs

The easiest way to get cash away from home is from an ATM (automated teller machine). The Cirrus (tel. 800/424-7787; www.mastercard.com) and PLUS (tel. 800/843-7587; www.visa.com) networks span the globe; look at the back of your bank card to see which network you're on, then call or check online for ATM locations at your destination. Know your personal identification number (PIN) and your daily withdrawal limit. Ask your card carrier if your current PIN works in the Bahamas, particularly in the Out Islands. Every card is different, but some need a four-digit rather than a six-digit PIN to withdraw cash abroad.

Many banks impose a fee every time a card is used at a different bank's ATM, and that fee can be higher for international transactions (up to $5/£2.65 or more) than for domestic ones (rarely more than $1.50/80p). On top of this, the bank from which you withdraw cash may charge its own fee. To compare banks' ATM fees within the U.S., use www.bankrate.com. For international withdrawal fees, ask your bank.

You can also get cash advances on your credit card at an ATM. Credit card companies do try to protect themselves from theft by limiting the funds someone can withdraw outside their home country, so notify your credit card company before you leave home. And keep in mind that you'll pay interest from the moment of your withdrawal, even if you pay your monthly bills on time.

On New Providence Island and Paradise Island, there are plenty of ATMs, including one at the Nassau International Airport. There are far fewer ATMs on Grand Bahama Island (Freeport/Lucaya), but those that are here are strategically located -- including ones at the airport and the casino (of course).

Very few ATMs are in the Out Islands. If you must have cash on your Out Island trip, make arrangements before you leave Nassau or Freeport; outside of Freeport, we counted just seven ATMs in the entire remaining Out Islands, including the one at the post office in Marsh Harbour. This situation is fluid, however, and more ATMs may be added in the future.

Credit Cards

Credit cards are another safe way to carry money. They also provide a convenient record of all your expenses, and they generally offer relatively good exchange rates. You can withdraw cash advances from your credit cards at banks or ATMs, but high fees make credit-card cash advances a pricey way to get cash. Keep in mind that you'll pay interest from the moment of your withdrawal, even if you pay your monthly bills on time. Also note that many banks now assess a 1% to 3% "transaction fee" on all charges you incur abroad (whether you're using the local currency or your native currency).

Traveler's Checks

You can buy traveler's checks at most banks. They are offered in denominations of $20, $50, $100, $500, and sometimes $1,000. Generally, you'll pay a service charge ranging from 1% to 4%.

The most popular traveler's checks are offered by American Express (tel. 800/807-6233 or 800/221-7282 for card holders -- this number accepts collect calls, offers service in several foreign languages, and exempts Amex gold and platinum cardholders from the 1% fee.); Visa (tel. 800/732-1322) -- AAA members can obtain Visa checks for a $9.95 fee (for checks up to $1,500) at most AAA offices or by calling tel. 866/339-3378; and MasterCard (tel. 800/223-9920).

Be sure to keep a record of the traveler's checks' serial numbers separate from your checks in the event that they are stolen or lost. You'll get a refund faster if you know the numbers.

American Express, Thomas Cook, Visa, and MasterCard offer foreign currency traveler's checks, useful if you're traveling to one country or to the euro zone; they're accepted at locations where dollar checks may not be.

Another option is the new prepaid traveler's check cards, reloadable cards that work much like debit cards but aren't linked to your checking account. The American Express Travelers Cheque Card, for example, requires a minimum deposit, sets a maximum balance, and has a one-time issuance fee of $14.95. You can withdraw money from an ATM (for a fee of $2.50 per transaction, not including bank fees), and the funds can be purchased in dollars, euros, or pounds. If you lose the card, your available funds will be refunded within 24 hours.