For large amounts of bitcoin (USD 1000 or more), you probably would get the best rate if you withdraw funds via ACH or via Liberty Reserve into a major exchange. The following exchanges are currently available that offer withdrawals into the banking system.
For smaller amounts conversion fees are usually too expensive. Thus other methods are usually a better choice. The following exchanges will enable you to redeem smaller amounts of bitcoins at reasonable rates:
- CoinCard sell bitcoins and receive payment through PayPal or purchase virtual prepaid cards with bitcoins
- bitcoin.local arranges for exchanging currencies in person with someone nearby.
- Bitcoin 2 Credit Card purchase virtual VISA prepaid cards with bitcoins
- Bitcoin Morpheus purchase reloadable debit cards with bitcoins
- bitcoin-otc IRC trading marketplace will usually have people willing to deal for small and larger amounts using various payment methods, including PayPal, Dwolla, Linden Dollars, etc.