A multi-currency account is a bank account that allows you to hold and transact in multiple currencies. This can be useful for businesses that operate internationally, or that need to make payments or receive payments in foreign currencies.
Multi-currency accounts work in a similar way to regular bank accounts. You can deposit money, make withdrawals, and transfer funds between accounts. However, with a multi-currency account, you can choose to hold your money in different currencies. This means that you can avoid paying foreign exchange fees when you make payments or transfers in a foreign currency.
How does a multi-currency account work?
When you open a multi-currency account, you will be given a unique account number for each currency that you want to hold. You can then deposit money into each account, and make payments or transfers in that currency.
When you make a payment or transfer in a foreign currency, the bank will convert your money into the currency required. The exchange rate that is used will be the prevailing exchange rate at the time of the transaction.
Benefits of a multi-currency account
There are a number of benefits to having a multi-currency account. These include:
Avoid foreign exchange fees: When you make payments or transfers in a foreign currency, you may be charged a foreign exchange fee. A multi-currency account can help you avoid these fees by allowing you to hold your money in the currency you need.
Convenience: A multi-currency account can make it easier to manage your finances when you operate internationally. You can access your money in multiple currencies from a single account, and you can make payments and transfers without having to worry about foreign exchange fees.
Flexibility: A multi-currency account can give you more flexibility when it comes to investing in foreign currencies. You can hold a variety of currencies in your account, and you can easily convert between currencies when the exchange rate is favourable.
How to choose the right multi-currency account
There are a number of factors to consider when choosing a multi-currency account. These include:
The currencies that you need to hold: Make sure that the account you choose offers the currencies that you need to hold. At Everpay, we have access to 30 currencies, in which you can hold, send and receive directly into a virtual IBAN in your name.
The fees that are charged: Compare the fees charged by different accounts before you make a decision.
The features that are offered: Some accounts offer additional features, such as debit cards or online banking in multiple languages. Make sure that the account you choose offers the features that you need.
Multi-currency accounts can be a convenient and flexible way to manage your finances when you operate internationally. However, it is important to compare different accounts before you open one, to make sure that you are getting the best possible deal.
If you have any questions, be sure to discuss them with us at Everpay.