Updated
GL-M-05
Glossary · Banks and finance
Multi-currency account - money in several currencies without needless conversions
01 / In 30 seconds
The short answer
- What it is
- One account holding money in several currencies at once
- Why it is needed
- Receive and pay in different currencies without forced conversion
- Where you gain
- On rates and fees for regular currency transactions
- Who it is relevant to
- On relocation, foreign property, income in different currencies
- What to look at
- The conversion rate and hidden fees, not just the list of currencies
02 / In plain words
What Multi-currency account means
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.
A case from practice
A family received income in one currency and bore its expenses in the new country in another. Every transaction went through a conversion with a mark-up. After switching to a multi-currency account and exchanging large sums at an agreed rate, their conversion costs fell noticeably.
When a multi-currency account comes in handy
- Relocating the family to another country
- Income in several currencies
- Paying for property abroad
- Spending on children’s education
- Regular transfers between countries
- Keeping a cushion in different currencies
03 / What it covers
What to look at when choosing
Rate
- Mark-up on the market rate
- Weekend rate
- Exchange limits
Fees
- Incoming payments
- Outgoing transfers
- Account maintenance
Currencies
- Those you need, not all of them
- Ability to hold a balance
- Details in each currency
Status
- Bank or EMI
- Deposit guarantee
- Acceptance of payments by counterparties
04 / How it works
How to choose and use it
Determine the currencies you need
Which currencies your income, expenses and investments are in.
Compare the rate and fees
Rate, markup, payment fees.
Check the institution’s status
Bank or EMI, licence and safeguarding of funds.
Open the account
KYC check and details issued for each currency.
Exchange currency when you decide
You convert when the rate suits you.
05 / Key facts
What you need to know
01How it works
Each currency is held separately
Euros arrive and stay euros, dollars arrive and stay dollars. You decide when to convert.
02The key parameter
The exchange rate
The markup on the market rate is often not shown separately. It matters more than the length of the currency list.
03Where to open
At a bank or an EMI
Non-bank services are handy for payments; it makes more sense to keep large capital in a bank.
04Payment details
May differ by currency
Different currencies can have their own details and payment channels. Check them before the first incoming payment.
Common mistakes
Choosing an account by the number of currencies
Compare the rate, markup and fees for the currencies you actually need.
Converting a large sum at the app's rate
Discuss large conversions with the bank separately: the rate can be improved.
Not checking fees on incoming payments
Check fees for incoming and outgoing transfers in each currency.
06 / Expert advice
How to prepare in advance
First determine which currencies you actually receive and spend money in — usually two or three, not twenty. Then compare not the tariff table but the total cost of a typical transaction: the rate with its mark-up plus the fees. For large exchanges the terms are almost always negotiated individually, and it is worth asking about this in advance.
What we do for you. We help set up the currency side of a move: which currencies to hold money in, where to exchange large sums and which account to pay the programme from. This is not about anything exotic, but about not losing on the exchange rate every month.
Robert HaasHead of Company Formation
07 / Questions
Frequently asked questions
An account in which money can be held in several currencies at once and exchanged when it suits you, not automatically.
Convenience: one app, one set of details and a clear picture across all currencies. But the key is the exchange terms, not the form itself.
The rate including the mark-up, the fees on incoming and outgoing payments, the institution’s status and whether it has the currencies you need.
Not necessarily. Such accounts are offered by both banks and EMIs. The status determines the protection of funds and whether a programme payment will be accepted.
Often yes: for large transactions the rate is negotiated individually. It is worth asking the manager before the exchange, not after.
If the account is at a bank and in the applicant’s name — as a rule, yes. With EMI accounts this is confirmed with the receiving party in advance.
INITIAL ASSESSMENT
Tell us what outcome your family needs
We will design a solution for your case, choose the country and the right status, and take the whole process through to the result.
