Managing foreign bank accounts can be complex, unless you choose the right bank and the right type of account. The recommended and mostly efficient options would be to hold either one multi currency bank account or several bank accounts but in one bank. Benefits and differences of both options are discussed below.
When you open an offshore bank account you most probably look to be able to operate in several currencies. The latter often results in holding separate accounts in different currencies. Many banks oriented to international clientele will certainly provide you with the necessary currency facilities, but not all of them secure the most efficient way for you to handle your transactions through these facilities. Your banking flexibility and maintenance expenses are not the last items to contribute to your commercial success.
Advantages to Holding Multiple Currency Bank Accounts in One Bank
Once you operate in several currencies and have to hold separate accounts for each currency, holding all of them in one bank would be a perfect solution by a number of reasons:
- it makes your life easier in terms of the paperwork you have to prepare to open each new account comparing to opening them in different banks. One set of documents opens you several bank accounts;
- it simplifies foreign exchange conversion and minimizes foreign exchange risks. You get extra flexibility to switch from currency to currency and employ any currency diversification strategy to the best of your economic interests;
- as a rule, you can manage all your accounts within one Internet-banking session. Once you logged in, you have access to all of them, instead of keeping separate passwords and login details, which might be inconvenient and insecure.
Still, you should remember that holding separate accounts multiplies your banking expenses. Each account may involve a separate initial deposit requirement or a minimum account balance thereafter, plus extra bank fees for account maintenance, being charged monthly, quarterly or annually, depending on or regardless of the volume of transactions on the account.
From this point of view, holding one multi currency bank account might be even a better solution.
Multi Currency Accounts
With a multi currency bank account you can have a combination of foreign currency accounts under one account number. It gives you all the benefits of foreign exchange flexibility as with multiple currency accounts. Herewith, you have balances in different currencies on one and the same account and can wire money in and out in any currency including international SWIFT transfers with no restrictions or limitations.
Your expenses for maintenance of a multi currency account are normally more favorable comparing to keeping multiple currency accounts. One account – one service fee, one minimum deposit to keep on it. The latter is especially actual for current commercial accounts.
With one multi currency bank account you can normally handle as much currencies as you need, including USD, EUR, GBP, other major currencies and more. Just make sure your bank has a corresponding account in the needed currency.
For those who are looking to diversify from one main currency, for example, the US Dollar, but not sure at that particular moment, which other currencies he might want to have in a while, opening a multi currency bank account is the most logical choice.
How to Open a Multi Currency Account
Opening of a multi currency account is not something really different from a regular offshore bank account. Some banks open you an account in multiple currencies by default, once you open an account with them.
You can always visit the bank in person. Quite often it is possible to open an account by mail.
Some banks do not open namely multi currency accounts as described above. However, you are welcome to open a currency account in one currency of your choice, for the start, and you can add more currency accounts at any time later at your convenience with no extra paperwork involved.
Information on specific banks offering this service is available on the Internet, as well as from our consultants. Professional recommendation is never extra. We can consider your personal situation and introduce you to decent banks where we have long-term working relationship as business introducers.