Sending or receiving payments from other countries often comes with a high transfer and FX conversion cost. If you make international transactions frequently, chances are you might have heard of a multi-currency account. If not, this post is especially for you.

In this blog, we'll take a closer look at what a multi-currency account is, its benefits, how to open one, and how to use it effectively.

What is a Multi-currency Account?

A multi-currency account as the name suggests is a bank account that allows you to manage your funds in multiple currencies in a single account, globally. This means you can make international transactions without the need to open a separate account in each currency or go through the hassle of currency conversion.

Depending on the provider, you can hold currencies such as US dollars, Euros, British pounds, and more. You can also make deposits and withdrawals in these currencies, as well as convert currencies at competitive rates.

Benefits of a Multi-currency Account

A multi-currency account allows the account holder to transact in different countries like a local entity. So, the main benefit of a multi-currency account is the convenience it provides for international transactions.

1. Less hassle: You can make and receive payments in different currencies without the need to open separate accounts or go through the hassle of currency conversion. This can save you time and money, especially if you frequently engage in international transactions.
2. Low conversion costs: A multi-currency account can also help you save money on currency conversion fees. If you make international transactions frequently, currency conversion fees can add up quickly. With a multi-currency account, you can convert currencies at competitive rates, which can help you save money on fees.
3. Convenience: A multi-currency account makes it convenient to make international transactions without the need to open multiple accounts or go through the hassle of currency conversion every time you make a transaction.
4. Accessibility: A multi-currency account can be accessed from anywhere in the world, making it a convenient option for anyone who travels frequently or has a global business.

Do you need a multi-currency account?

Multi-currency account can be of great benefit to:

1. International business owners
2. Frequent travelers
3. Expats
4. Import, export owners
5. Freelancers
6. Travel agents and agencies

It is not advisable to get a multi-currency account for the following use cases:

1. Occasional traveling
2. Rarely making international transactions

Drawbacks of multicurrency accounts

1. Minimum Balances: Some providers may require a minimum deposit or balance to open and maintain a multicurrency account, which can be a drawback for some users.
2. Exchange Rate Risks: On rare occasions, exchange rates may fluctuate and impact the value of your holdings.

So, it is important to evaluate the need for a multicurrency account before opening one.

Conclusion

A multicurrency account can be a convenient means to transact internationally and in different currencies. With competitive rates, currency management features, and transparency, using a multicurrency account is simple and straightforward.

Before opening a multicurrency account, be sure to research different providers and their fees and requirements to find the best option for your needs. Payment enablers like PayGlocal can help you set up your multicurrency account quickly and without hassle. PayGlocal’s dashboard also helps you track your currency holdings and transactions. You can talk to our team to see it in action.