You're right ucbmckee, it can vary from moment to moment, perhaps there was a big swing at one particular moment? Of course, it doesn't make it clear whether interbank at that time was $1.74 or $1.71 or whatever. Still, I can't imagine they'd give you such a tiny rate for £500 worth. I mean, they'd never even cover their costs, surely? Has all this nationalisation talk turned banks into charities? 
I looked up the daily charts and it -does- seem like things have been a bit wild, recently. =)
As to the rest, the bank isn't really being charitable, per se - rather, they just have an agreement with Barclays to treat each other's ATMs as their own. I believe, at one point, BofA was in talks to acquire Barclays. It's supposed to be just like using an ATM at your own bank. Most people probably don't (ab)use it like I have been recently and am suggesting. =) I suspect it's considered an attractive way to lure in (typically more well off) international business professionals. I know I'd never have joined BofA if they didn't have this program, at least, and they're certainly making money off the funds I have in their (non-interest bearing) checking account. I suppose for reasons like this, I wouldn't really say it's intended to compete with xtrade and some of the other forex services.
