Think global and trade or invest all over the world with a multicurrency account that would keep all your finances in one place.
The world, as we know it, has changed quite significantly. Businesses now offer their services all over the world. They also often tend to register with different stock exchanges to trade on their shares outstanding requiring investors and consumers alike to juggle between different currencies like Euro, Dollar, Pound, and so on.
Therefore, living in the age of globalization, our need for bank accounts has changed quite significantly. While the ease of international or national money transfers is fundamental to any modern bank accounts, that alone isn’t enough. To remove the hassle of managing multiple accounts in different countries with different currencies, today’s banks often also offer a multicurrency account.
What is a Multicurrency Account?
A multicurrency account is a bank account that offers the ability to hold, transact, and check the financial reports of various different currencies – all within the exact same account. It’s certainly more versatile than the traditional, single currency account that usually holds only its national currency.
For example, if you open a normal account in the UK, the designated currency would be Pounds Sterling. Whenever you receive some euros or dollars in the account, the amount needs to be converted into Pounds incurring conversion fees and delays in the process. A multicurrency account, on the other hand, would allow you to receive funds in various currencies without conversion.
Features of a Multicurrency Account
Depending on your place of residence and the bank you choose to open your multicurrency account, the features may vary a lot. However, they must have a few common features that are fundamental to this kind of accounts. These are:
The ability to hold more than one currency such as the Euro, Dollar, Pound, etc. under the same account. It includes the ability to deposit, withdraw, transfer, payments, and such.
The benefit of paying a single amount for the management of your account, without needing to pay a conversion charge or something similar in case you receive or want to pay with a different currency. However, the currency in question needs to be allowed in your multicurrency account.
A single set of passwords, cards, and apps to manage all your banking needs – all within one bank and following the same guidelines. Some banks also offer the opportunity to trade in the forex markets, supported by an immaculate customer service team.
Do You Need a Multicurrency Account?
Predominantly offered to businesses, multicurrency accounts are now also available for individuals. However, you may be subject to a credit check based on various factors.
Anyways, having a multicurrency account can be greatly beneficial for e-commerce businesses selling goods and services worldwide. It can also be great for individual contractors and freelancers, ex-pats, people with foreign employees, etc. Traders and investors who trade different currencies or on different exchanges can also do with an account with multiple currencies.