Imagine that you are a small business owner or an individual who requires foreign transactions quite often. In such cases, you will be dealing in foreign currencies. So, what do you expect from the transactions?
You see, the first thing that will come to your mind is the exchange and transaction fees. But, if I tell you that you can limit the costs just by opening a multi-currency account? Sounds great, right? Today, we will be exploring the features of multi-currency accounts and try to discuss the benefits.
So, what are you waiting for? Take a pen and a paper and start taking notes. Trust me, this can make your life a whole lot easier.
What is a Multi-Currency Account?
The name speaks for itself. Multi-Currency Accounts are just like regular bank accounts.
Yes, you can perform all the banking solutions in multiple currencies. This feature will give you an extra advantage. If you are dealing with foreign clients and payments, this will save you big bucks. Now, the big question is, does the account changes for every transaction?
The answer is yes, it will charge a transaction fee for every transaction. However, you will be able to save the exchange fees which you had to pay to exchange currencies. On top of that, taking payments directly in your bank account is hustle-free.
Features of Multi-Currency Accounts
The features of Multi-Currency accounts are pretty much the same as a regular bank account. That means you can easily deposit or withdraw money, apply for loans, save money and do a bunch of other kinds of stuff same as the regular bank accounts.
However, we will have to discuss the features to have a clear understanding. So, here are the features of multi-currency accounts.
Deposits & Savings: You can deposit and withdraw money whenever you want in these accounts. You can also save money as savings. For that, you will be able to get interest from the bank. The interest rates differ from bank to bank. You can talk to your agent to learn more about the interest rates.
Foreign Exchange: The never-ending hustle of exchanging foreign currencies will potentially end once you have a multi-currency account. However, in such cases, you might save the exchange rates by a fair margin. You still have to pay the transaction fees though.
Send & Receive Payments: You can send and receive payments from all around the globe. Multi-currency accounts allow you to deal with foreign currencies. So, if you have a business that requires payment gateways from your local currency to AUD, CAD, or any other foreign currencies, you can do it in minutes.
However, in such cases, there is a catch. If you are doing these sorts of transactions on a regular basis, the fees might be a hiccup for you. Some banks do give a certain level of flexibility in terms of multiple transactions a day, but still, you should look into it before opening an account.
3 Benefits of Having a Multi-Currency Account
You see, among all the benefits, we have narrowed the discussion down to the 3 most essential benefits of having a multi-currency account. These are described as follows:
Save Big Bucks: You will be able to save a good amount of money which you might have paid in terms of exchange fees. Once you have a Multi-Currency account, you will be able to deal with foreign currencies just like your regular currency. So, the process of deposits and withdrawal remains the same.
Exchange Faster, Save Time: You will be able to exchange foreign currencies with better exchange rates just by clicking some buttons or requesting your agent. This will save a huge amount of time as well as effort.
Do Business around the Globe: If you are receiving payments from different countries, or you hire a freelancer to do your business, a multi-currency account will be beneficial for you. You can receive payments or send paychecks to your clients and employees in different currencies.
Disadvantages of Having a Multi-Currency Account
Here are the major disadvantages of having Multi-Currency Accounts.
Fees Might Strangle You: You might not have to pay the exchange fees while receiving or sending foreign currencies. But, multi-currency accounts will certainly charge you with other fees. These fees might not seem to be too high in the beginning. But, it can become a hiccup.
Transaction Limitations: If you are running a business that supplies products around the globe, then you will be receiving payments in foreign currencies. You might have to pay your foreign employees as well. Either way, you may conduct multiple transactions a day.
So, the transaction fees might add up and become a huge amount. On top of that, many banks have transaction limitations. Check on it with your banking agent to know more.
Do You Need a Multi-Currency Account?
This question can be answered by checking upon a checklist. So, before heading into the question, let us make a check list.
- Do you shop online from foreign sites?
- Do you own a business that requires to send products abroad?
- Do you receive remittance on a regular basis?
- Do you have to send money to foreign countries?
- Do you travel overseas a lot?
- Do you need to pay foreign college or other fees?
If either of the above is proven to be true for you, then you will be needing a multi-currency account. However, you can still manage some of the tasks from a regular bank account. But, having a multi-currency account will save you quite a bit of extra work.
Final Thoughts
In short, multi-currency accounts can be life-saving if you are more into foreign currency dealing and exchanges. But, if you are not involved in any, issuing a multi-currency account won’t be a wise thing to do.
So, do your maths first, make sure that you have covered all the tangibles all by yourself. And then make a decision.