Are you sending money internationally? If yes, then you must feel like you are giving away your lunch money and sometimes even more to that hidden fees and unpredictable exchange rates. On top of that, you have to wait like forever to get your transaction approved and processed.
This is where multi-currency accounts come in handy. Hidden fees on cross-border transactions and unfavorable exchange rates can eat a significant chunk of the money you send or receive, which is why many people who often make international transactions switch to multi-currency accounts.
But how much can you actually save? Is it worth the transition? Well, you can save a lot of money, and the transition process isn’t really that complicated.
Let’s learn more about multi-currency accounts and how they can help keep most of your money in one place.
What is a Multi-Currency Account?
First, the important question is, what are actually multi-currency accounts? Well, to put it simply, they are accounts that act as digital wallets capable of holding multiple currencies on the same account.
So, if you are a freelancer, someone working a remote job in a different country, an expat, or an entrepreneur with frequent cross-border transactions, then a multi-currency account is perfect for you.
Let’s say that you are paid in EUR, but you live in the United States. With traditional banks, you have to convert the amount of money received into the local currency (in this case USD), which is all good since you’ll probably use it there, but this comes with hidden costs for cross-border transactions that can eat as much as 5% of the amount of money received.
On top of that, the exchange rates (which are in most cases hidden) are quite bad! Yes, banks want to earn money on that too! So, you’re not only paying the bank unnecessary fees to process your cross-border transaction, but you are also forced to exchange your currency into USD at an unfavorable rate.
So, on a $5,000 income, you might have to pay anywhere from $150 - $250 to the bank for processing the transaction and that unfavorable exchange rate.
But why would you do that when you have multi-currency accounts? These accounts are designed to store multiple currencies at once, so, if you are paid in EUR, you can keep the amount in EUR until you are ready to use that money. And when you do, the exchange rates are usually quite favorable, which means you are getting more out of your money.
That’s why many people are transitioning to multi-currency accounts, to save money.
Remember, never underestimate the low percentage of the hidden fees on traditional banks. Even if they are as low as 1%, if you receive frequent payments, you’ll end up paying a lot of money to the bank.
The worst part? Remembering that this was easily avoidable by using multi-currency accounts.
So, no matter if you are a freelancer or a business that does international business, it is worth checking some of the offers from the best multi-currency bank account providers.
Why Use a Multi-Currency Account for International Transfers?
1. Say Goodbye to Hidden Fees
Traditional banks often charge steep fees for international transfers. For example, high street banks in the UK may demand transfer fees of up to £40 per transaction, plus unfavorable exchange rates. Most virtual banks that offer multi-currency accounts offer rates close to the mid-market rate, with transparent fees ranging from 0.3% to 1%.
2. Hold Multiple Currencies Like a Pro
Freelancers and businesses love these platforms for a couple of reasons. It allows you to hold balances in major currencies like USD, EUR, and GBP and pay contractors or suppliers without conversion losses.
Need to exchange currencies? Some even simplify the process with low conversion fees and support for over 200 countries.
3. Speed and Accessibility
Forget waiting days for a transaction to go through. Multi-currency accounts often process transfers within hours, making them ideal for time-sensitive payments.
How Do You Save?
Lower Exchange Rates
Ever noticed how banks set their exchange rates a notch higher than what you see on Google? That’s how they profit. Remember these platforms often use mid-market rates—the real rates you'd find on forex exchanges—saving you up to 4-5% per transfer.
No Maintenance Fees (Mostly)
While traditional banks might charge account maintenance fees, providers like Genome offer free basic accounts. Some premium features may cost extra, but even these can be worth it if you’re handling large sums.
Better Control Over Your Money
On top of that, these platforms let you freeze/unfreeze cards, set spending limits, and get instant notifications. This level of control is a game-changer for budgeting and financial security.
When Should You Get a Multi-Currency Account?
Are You...
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A Digital Nomad? Save on transaction and ATM withdrawal fees.
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A Small Business Owner? Streamline payments to international suppliers.
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A Freelancer? Receive payments from clients worldwide in their currency.
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A Frequent Traveler? Spend abroad without crazy conversion fees.
So, if you are into saving money (which we all are), make sure you do your own research and switch to multi-currency accounts. You’ll be amazed on how much money you can save.
