Most bank accounts can’t hold more than one currency, and if you want to change currencies, you’ll have to pay a lot. But there is one big exception: multicurrency accounts.
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What’s A Multicurrency Account?
A multicurrency account, sometimes called a foreign currency account, lets people and businesses hold different currencies in one bank account. They can also send, receive, and take money out of the account, just like with a regular bank account, but they can do so in more than one currency.
Say you often do business abroad, but you do most of your banking in the U.S. Having a separate bank account in each country where you do business can be hard to manage because you have to keep track of multiple accounts and could end up paying a lot in fees for transfers and currency conversions.
Read more: See the best banks for international use…
Different banks offer different currencies for multicurrency accounts, such as:
- U.S. dollar
- Canadian dollar
- Euro
- Australian dollar
- British pound
- Hong Kong dollar
- Japanese yen
Some multicurrency accounts even come with a debit card, so you can easily shop abroad (in stores or online) and avoid paying high foreign transaction fees.
Multicurrency Account Pros And Cons
A multicurrency account has many benefits, such as:
- You can manage money in different currencies all in one place, which makes it easier to keep track of transactions in other countries.
- Since you can use the most competitive exchange rates, the cost of converting is less than what you’d pay with other types of accounts.
- Some accounts with more than one currency come with debit cards.
- You can have more than one local account number or code, like a European bank code and a U.S. bank account number, so that you can get paid in different countries.
Some bad things about multicurrency accounts are:
- There are often high minimum balance requirements for multicurrency accounts, sometimes $200,000 or more.
- There may be higher costs to keep it up.
- If it’s a savings account that pays interest, it’s likely to pay much less than a standard savings account or money market account.
- There may only be a few things you can do with the account. It might not have overdraft protection or a checkbook, for example.
How To Find The Best Multicurrency Account
Many accounts that can hold more than one currency are only available to businesses through private banking services. Many large U.S. banks, like Citibank, PNC Bank, and Wells Fargo, offer multicurrency account options for business owners.
A few banks and fintechs offer multicurrency accounts to the general public. These accounts might have lower minimum balance requirements, but they might also have more restrictions, like not letting you withdraw money in a different currency. Some multicurrency accounts that are open to the public are:
- TIAA Bank’s WorldCurrency Access Deposit account
- Wise Multi Currency account
- Revolut Multi Currency account
- Payoneer account
Before deciding on a multicurrency account, you should compare the account opening and closing fees, monthly maintenance fees, minimum balance requirements, and the currencies that can be converted with the account.
Other Ways To Send Money Abroad
Multicurrency accounts are best for people who do a lot of business in other countries or who live abroad and have expenses in other countries.
You don’t need to open a multicurrency account if you’re only going to make a one-time international transfer or change money when you go on a rare trip abroad. There are other ways to deal with different currencies, such as:
- International wire transfers: You can usually do an international wire transfer through your bank or a third-party money transfer service like Western Union. International wire transfers are fast and can be used to move large amounts of money, but they incur high fees.
- No foreign transaction fee debit and credit cards: With a credit card that doesn’t charge foreign transaction fees, you can make everyday purchases abroad at low exchange rates. With a debit card that doesn’t charge foreign transaction fees, you can get cash from ATMs at a low cost. The Charles Schwab checking account with debit card is a favorite of international travelers.
- Xoom is a peer-to-peer payment service that lets people send money to each other across borders. It is offered through PayPal and has a fixed conversion fee that varies by currency.
- Wise: Along with a multicurrency account, Wise also lets people make one-time international transfers. You can start a flat-fee foreign transfer by linking a bank account, debit card, or credit card and adding the details of the recipient’s bank account. The fee depends on the currency and type of payment (sending by bank account is typically cheapest). Most of the most common currencies can get the money sent through Wise in one business day.
Read more: See the best money transfer services here…
Bottom line
People who often do business in different currencies can benefit from having a multicurrency account. They let you handle all your international transactions in one place and give you access to better exchange rates. But there may be high minimum balance requirements and/or monthly fees for multicurrency accounts.
If you only need to make a one-time international transfer or convert currency for an occasional trip, you might want to look into other options, such as a credit card with no foreign transaction fees or money transfer services that are not affiliated with a bank.
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