This content is sourced and brought to you by The Money Cloud – comparing the best rates for sending money overseas offered by hand-picked, regulated brokers and money transfer agencies.
Expats living in the Eurozone, businesses trading in the region and Europeans holding excess Sterling may be intrigued to hear that MoneyCorp have just launched a savings account which supports both pounds and euros.
The MoneyCorp account, which requires 90-day notice for all withdrawals, offers a handsome interest rate of 1.3% too – provided you are depositing Sterling – the rate on Euro deposits is just 0.05%.
Customers or businesses applying for the account – it’s open to both – should also be aware that they will only be able to pay funds in by making an online transfer from another Moneycorp account. All withdrawals will be credited to the same MoneyCorp deposit account.
Customers will be able to add money to their accounts – up to a value of £1 million pounds and €1 million euros, with a minimum of £10,00 (or €10,000) initial deposit, for as long as the issue remains open.
When the issue is withdrawn from sale no further deposits can be made until such a time as the issue begins accepting funds again. Or, customers can apply to open another account if another issue is open. There is no limit to the number of accounts customers can hold, but only one issue available at anytime.
90-day notice must be given ahead of a withdrawal, and it should also be noted that 0% interest applies once the balance on the account drops below 10,000 in either currency. The money is credited to your MoneyCorp checking account.
Typically, with a multi-currency account, there is a designated primary currency, in this case Sterling.
Another thing to note is that is that the account is not regulated by the Financial Conduct Authority (FCA), but it is regulated by the Gibraltar Deposit Guarantee Scheme (GDGS). The GDGS pledges to pay compensation up to a value of €100,000 to depositors if a bank is unable to meet its financial obligations.
Who is this multi-currency account for?
The account is most likely to be of interest to those living or doing business overseas. The interest rate is competitive at 1.3% but falls somewhere between a fixed term account – of which there are many paying better rates if you can hold your money for up to one year – and an instant access account – much lower rates but with the benefit of instant accessibility.
It could be useful for those who need to make payments in more than one currency however. People who live overseas, for example, businesses paying for goods, services or staff in 2 locations, and those who make regular payments overseas. Another good reason to hold a multi-currency account would be to hedge against currency fluctuations. In these uncertain times with Brexit looming, holding some of your funds in Euros may prove to be very advantageous.
From a business perspective, imagine you are buying stock from one country, and selling it to another. Whenever you receive payments in one currency you are being exposed to currency risk, and, of course, fees for converting the money.
MoneyCorp are by no means the only bank offering dual currency accounts – many major banks, e.g. HSBC or Citibank, will offer a similar service usually targeted at expats.
The Money Cloud View
Provided you are organised about your payments, and remember to give the required notice, there’s no reason MoneyCorp’s account couldn’t work for you. 1.3% is a competitive rate, believe it or not, in today’s financially depressed market, although for how long, with interest rates in the UK likely to climb in 2018, remains to be seen.
A niche account, but may suit some very well.