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If you go into a high street bank to change money, you will find that the charge for a currency which is not in 'Euroland' costs slightly more. Most banks do not offer preferential rates for their own clients to change money.
The Berliner Bank charges a flat DM10, Deutsche Bank has a variable rate, as does the Dresdner Bank - around 250 sterling will set you back € 2. The Sparkasse takes a minimum of € 10 from clients and € 14 from non-clients, and the Volksbank charges € 5 to everyone.
Basically it is worth shopping around for larger amounts - it may be that banks which charge more actually offer a better exchange rate, and vice-versa.
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