Multi-currencyaccount

In plain words

A multi-currency account is an account in which money can be held in several currencies at once. Put simply: euro that arrive stay in euro, dollars that arrive stay in dollars, and no one converts them automatically at an unfavourable rate.

The practical benefit is that you decide when and at what rate to exchange currency. On relocation this is noticeable: income may arrive in one currency, rent and school are paid in another, and the programme investment in a third. Without a multi-currency account each such transaction turns into a conversion with losses.

When choosing such an account, look not at the length of the list of currencies but at the terms: what rate the exchange is done at, whether there is a mark-up on the market rate, what the fees are for incoming and outgoing payments, whether the payment channels you need are supported. An impressive list of thirty currencies is irrelevant if the exchange rate eats up the benefit.

When a multi-currency account comes in handy

What to look at when choosing

How to choose and use it

1. 01Determine the currencies you need
2. 02Compare the rate and fees
3. 03Check the institution’s status
4. 04Open the account
5. 05Exchange currency when you decide

What you need to know

• The main criterion is the exchange rate, not the number of currencies
• The mark-up on the rate is often not shown separately
• Both banks and EMIs offer multi-currency accounts
• The payment details in different currencies may differ
• A large exchange is worth discussing with the bank separately

Common mistakes

• ✕Choosing an account by the length of its list of currencies
• ✕Not calculating the mark-up on the market rate
• ✕Keeping large capital in a non-bank service
• ✕Exchanging a large sum at the app’s standard rate
• ✕Not checking the fees on incoming payments

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