Last editedJan 20222 min read
A multicurrency bank account allows you to receive, pay, and hold multiple currencies. Customers can deposit and withdraw cash in various currencies, and transact in different currencies via a single platform.
A multicurrency account like GoCardless is convenient if your business operates in several countries, since there’s no need to open separate bank accounts in each of the countries you deal with. Having a multicurrency bank account helps to reduce currency exchange fees, making it useful for people who travel frequently.
In this post, we’ll examine the features and benefits of opening a multicurrency bank account in the UK.
Multicurrency bank account in the UK features
The exact features of a multicurrency account will vary between providers, however there are some features that are generally apply:
The ability to hold multiple currencies in one account, for example, US dollars, euros, and GBP. GoCardless, for example, allows you to receive international payments from more than 30 countries with real exchange rates.
The option to transact in each of the held currencies, making it simpler to manage transactions and keep accurate records from one central point.
Various useful functionalities, including apps and online banking features.
A multicurrency debit card to enable spend in local currencies at competitive exchange rates.
Multicurrency bank account benefits
There are several advantages to having a multicurrency bank account including:
Lower transaction costs: Having separate accounts in each country and currency usually incurs a fee for maintaining each account. Foreign banks may also require account holders to maintain a large minimum balance in the account, and may apply charges per transaction, in particular for wire transfers. With a multicurrency account, customers pay just one small account management fee, and there’s no requirement to hold a minimum balance. Foreign exchange conversions are also performed at highly competitive rates.
Easy Forex management: Forex (foreign exchange management) is easy to manage in a multicurrency account in the UK. Forex volatility can be addressed by accepting payment in any currency and spending it in that same currency – avoiding exchange costs. A multicurrency bank account is like a holding account so customers can wait until there’s a favourable exchange rate before converting one currency into another.
Simple and convenient: Multicurrency bank accounts are easy to open and manage from one place. With no need to juggle several banks in different countries, accounting procedures are easier, and it’s easy to track income and spend.
Saves time: With a UK multicurrency bank account you can make and receive payments in local currencies so there’s no downtime.
Digital banking: It’s possible to access a multicurrency bank account from anywhere at any time and make digital payments online.
Which multicurrency account should you choose?
When you’re looking for a foreign currency processing platform you’ll want to look for one that supports the countries you deal with, as well as the currencies you operate in. You’ll also need to ensure your provider can convert funds into your home country’s currency and settle it in your primary bank account.
When it comes to fees you should compare conversion rates and transaction fees before committing. GoCardless offers transparent and competitive pricing and uses real exchange rates, so you’re assured of the best value for your international payments.
Why consider a multicurrency account in the UK
If you travel a lot or do business in different currencies you should consider opening a multicurrency account. In uncertain economic climates a multicurrency bank account can help protect you from extreme exchange rate fluctuations, saves you time on reconciliation and accounting, and cuts costs on foreign exchange fees.
We can help
GoCardless helps you automate payment collection, cutting down on the amount of admin your team needs to deal with when chasing invoices. Find out how GoCardless can help you with ad hoc payments or recurring payments.