Having a Euro account means that you can smoothly, swiftly and easily make euro payments; receive funds in euro and manage your account online. With a Euro account, you can hold multiple currencies in the same account; this is why it is also called a “borderless account” or a “multi-currency account.”
European Bank Account Online Fees and Rates
Transfers in and out of a euro account all use the mid-market exchange rate. The transaction fees are transparent and low. For this reason an Euro account is preferable to a regular bank account or money exchange service where the mid-market rate is not always used; exchange rates are exaggerated and transaction rates are high.
Who should have an Euro bank Account?
- Those traveling frequently in the Eurozone (get a debit card to use for direct euro payments and make euro ATM withdrawals while in the Eurozone).
- Freelancers that are paid in euro or make payments to suppliers in euro
- Entrepreneurs that receive funds in euro or make payments in euro
- Expats living in a country where the currency is Euro
- Those who want to hold multiple currencies in one account, including Euro
- Businesses that make regular Euro payments to staff, office suppliers, utilities etc.
- Those wanting to make transfers in euro to friends and family within the Eurozone
- Businesses located outside the Eurozone that have customers and suppliers in the EU.
- Any business that receives and sends Euro to and from Europe.
Questions to Ask When Opening a European bank account
Choosing whether to open an account with a traditional bank or a digital bank can depend largely on a comparison of the charges and fees. To make an informed decision you should find out the cost of transferring funds in different currencies or countries. If you make regular or large transfers in euro then the optimum solution is often a euro account. The most important thing you need to find out before opening a new account at any bank is the charges and fees for your specific account. Fees and charges differ from bank to bank and can include a monthly set fee, fees for transfers, and fees for receiving and sending money. The charges may depend on the number of transactions you make within the month or year. Another important point is whether your account allows you to hold several currencies simultaneously.
Choosing a Euro Account in the UK
Today many regular brick-and-mortar banks in the UK offer euro accounts. There are newer banks, foreign exchange companies and FinTech companies that now compete with traditional banks. These “challenger” options may offer a more attractive alternative to your high street bank with lower fees and charges.
If you opt to stick with a traditional bank then enquire at your local bank where you have an existing account. Many of the traditional banks will only offer Euro accounts to preexisting customers. Other banks may have certain conditions that you have to meet in order to open a euro account. For example you may be required to maintain a minimum balance or show proof of a steady income above a minimum income threshold.
Advantages of a Euro Bank Account Online
- Maintain an account with a euro balance
- Keep multiple currencies in your euro account
- Send and receive euro
- Save on the exchange rate if you are transferring funds from your euro account in euro
- If you regularly receive funds in multiple currencies you can save on the exchange rate
- Now is the time to open a euro account while more and more providers are making it easier and cheaper to open Euro accounts.
Last but not L east – Better Safe than Sorry
Remember that in the event of a bank or financial institution going bankrupt only the first £85,000 of your money held by that bank is protected. However, this covers all of your holdings at the bank. So if you had a large amount of money held in several accounts at the same bank and that bank went bust you would only be covered for £85,000 overall and not £85,000 for each account. For this reason, it is often recommended that if you have a large amount of money in multiple currencies you should spread your funds across several financial institutions. Consider these points as well:
- European business bank accounts are usually difficult for foreign companies to open, especially online. Each bank or fintech company has its own requirements and compliance procedures. Your success in opening a European business account online depends on where your company is registered, the industry you work in, and the country where the bank is located. Most importantly it depends on whether you can provide all the documents for the online onboarding process. By selecting the right bank, in the right country, and having all your ducks in a row you can avoid having your account application rejected. We can recommend the best European online business bank account for your business needs.
- Opening a European business bank account online is often challenging due to tough compliance procedures and changing regulations. Opening a European business bank account online is the best option for non-location-specific businesses, independent international businesses, and businesses that are registered in a country where the owners are not full-time residents. Often the easiest option for opening a business account online is to go with a fintech solution, challenger, or neo bank. Popular choices include TransferWise Borderless Business Account; Payoneer; the Finnish challenger bank, Holvi; N26 Business and Tide, a UK-based banking solution that accepts UK companies with foreign owners/directors living abroad.
- Companies with a European virtual bank account IBAN can make instant payments within the SEPA zone. Transfers within the 35 SEPA European countries are treated as domestic transfers and are free of charges. Non-EU companies with a virtual bank account in Europe don’t have to rely on the payer’s bank to set the exchange rate and this can save them money on each transaction. Virtual bank account providers in Europe include TransferWise Borderless; the German-based virtual bank N26 (doesn’t operate in the UK since 15th April 2020); Dutch-based virtual bank bunq and the UK-based virtual banks Monzo and Revolut. There is also Dukascopy, B2B Pay and Starling Bank.
open euro account online: Having a Euro account is extremely useful for businesses paying suppliers in Europe; accepting payments from EU customers or investing in the Euro market. Having a Euro account will also cut costs as you can make SEPA transfers within the Eurozone with low transaction fees and reduce exchange rate risk. Most traditional European banks require a visit to a bank branch to open an account and/or proof of an EU address. If you are not in Europe the easiest solution is to open a Euro account online with a respected European virtual bank, payment provider or EMI.
business bank account europe: The requirements for setting up a business bank account in Europe vary between different banks and different countries. With a business bank account in Europe, you can send and receive payments in Euro, save on transaction fees with SEPA transfers and save on exchange rates. Traditional European banks make it difficult for non-EU residents to open a business account. So it is advisable to have an agent represent you who is familiar with the process. The simpler option is to open a business account with a virtual bank, EMI, or payment processor. They offer most of the bank services that a traditional European bank offers, including a European IBAN with more convenience. Top remote business bank accounts in Europe include Holvi, N26 and Bunq.