Having an 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 an 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 an 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.