What Is a Multi-Currency Account And How Can You Get One

Nov 21, 2019 | BANKING

A multi-currency account allows you to hold multiple currencies in one account, sometimes via debit card, check, ACH, and wire transfer. Multi-currency accounts come in the form of Direct Deposit Accounts (DDA), money market accounts (MMA), and certificates of deposits (CD). Some multi-currency accounts are akin to a standard current account for day-to-day transactions, while others are designed for customers wishing to save in a foreign currency.

Multi-currency accounts enable you to simply send and receive money from abroad with ease. Perfect for travelers, this type of account can get you by as you live beyond borders. While multi-currency accounts are less common these days in the U.S., they are relatively common overseas, including in Great Britain and Australia.

But, be prepared. Experts say that multi-currency accounts do ask higher fees than some other accounts. There are transaction fees, fees on ATM withdrawals, etc. Some banks even charge annual account management fees and require you to deposit a minimum amount to open the account.

 

What are the Advantages of a Multi-currency Account?

There are many advantages of a multi-currency account, including favorable foreign exchange rate opportunities, but that’s not all. Multi-currency account holders enjoy risk reduction when it comes to losses and rate spread due to timing differences between incoming and outgoing multi-currency flows. Multi-currency accounts provide a better customer service experience as there’s less of a need to contact foreign customer service centers and more.

Multiple currencies accounts empower businesses to make and receive payments in local and foreign currencies without needing to convert as a result of each transaction. Even the bank account opening process can be simpler for a multi-currency arrangement, as you might not need to exchange the currency during sign up.

With some financial institutions, you can even receive a payment card tied to multi-currency accounts. Multi-currency accounts represent an elegant solution for managing cash flow in a global village. Multi-currency arrangements enable you to hold a balance in foreign currency-spend or switch between currencies as you please. That’s right. You can hold a balance in one foreign currency, and then switch back to your local currency as you please. (fees may apply)

As the world becomes more interconnected, banking clients want multi-currency accounts. Businesses and individuals can protect themselves from all manner of potential threats to personal, corporate wealth, from local disturbances to exchange rate fluctuations.

What are Some More Possible Benefits of a Multi-currency Account?

Managing your financial affairs in multiple currencies can make the lives of world citizens easier. Lone wolf entrepreneurs too, who work with global clients or suppliers, could benefit from a multi-currency account. Here are some of the benefits of multi-currency accounts listed out:

  • You can hold your money in multiple currencies all in one account
  • You can switch between multiple currencies and save on conversion fees
  • If your account is offered by a provider regulated by the Financial Conduct Authority (FCA) or the FDIC, for instance, you might enjoy insurance on certain deposits
  • Streamline your foreign currency cash flow management
  • Simplify collections and disbursement of funds without converting to U.S. dollars
  • Initiate wire transfers for your multi-currency account(s)

Why do I Need a Multi-currency Account?

Enterprises with global businesses often manage multiple currencies throughout the course of their operations. With a multi-currency account, they could instead receive payment in multiple currencies to one account instead of many. Multi-currency accounts are also useful in these instances:

  • Your business engages in international trade, including both exports and imports
  • You’re selling goods online across borders
  • You run an e-commerce store in many currencies
  • You employ staff abroad or work with freelancers in other countries
  • You’re a sole proprietor that works with international clients

Individuals and businesses will save on foreign currency transactions by reducing exposure to currency exchange rates.

Multi-Currency Accounts Offer Flexibility

Before you choose the multi-currency account right for you, you’ll need to consider what you need. Knowing all accounts, processing, and handling fees on specific currencies and transactions, for example, is important. Be sure to check out the following before deciding upon a multi-currency account:

  • Do the foreign currencies offered by the bank aligns with the currencies in which you do business.
  • Does the bank charge for currency conversion charges?
  • Are there any transaction limitations?
  • How long do transactions usually take from home bank and accounts overseas?
  • Can you transfer, deposit, and withdraw funds over the phone, online, or at a branch? What are the fees?

 

Is Reporting Multi-Currency for Accounts Easier?

Reporting on international assets might be easier with a multi-currency account, as you can hold more than one asset in single a location. Keeping track of deposits and withdrawals could be as easy as one monthly statement, regardless of the currency.

Multiple currencies accounting software could make managing your foreign assets and liabilities easier. Many small businesses might not even need foreign currency accounts, depending on their international transaction volume.

 

Where can I get a Multi-Currency Account?

Financial institutions offer accounts that enable businesses and individuals to hold money in multiple currencies.

EQIBank offers a multi-currency account from an offshore financial centre. This borderless account equipped with the features you enjoy in most other accounts.

It is regulated by the regulator in a leading Caribbean offshore financial centre, Dominica, and is regulated by the central bank there as well as the Eastern Caribbean Central Bank.

We offer you debit and credit cards that make it easy to spend and withdraw cash from ATMs from anywhere in the world.

Our innovative global banking platform can make your life easier and help you keep everything organized.

Here are some of the benefits of an EQIBank multiple currencies account:

  • Access your multi-currency account(s) online
  • Enjoy personalized service from a dedicated Personal Banker
  • Enjoy the tax neutrality that comes with an offshore financial centre
  • Fast transfers to 180 countries

Apply Now for EQIBank account

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