Foreign Currency Bank Accounts
Exchange charges can be pricy if you have a second home abroad, is a foreign currency bank account the answer?
More Brits than ever are buying a second home abroad. The ‘silver pound' generation have profited from the property boom and are making the most of their retirement. Second homes in places like Spain, France and Bulgaria are increasingly popular – locations that are a short hop from the UK, with cheap air links and a good standard of life. The sun, sea and sand however come at a price. And foreign currency exchange rates can often cost more then many homeowners budgeted for.
Foreign Currency Exchange Rates
It's estimated that 1 million Britons own a second home abroad, but what's the best way to avoid foreign currency exchange conversion charges? For some, a foreign currency bank account is a popular solution. Costa Brava is said to be the favourite location for second homers from the UK. As a result, banks are following suit launching new foreign currency savings accounts. These accounts are aimed at second homers who already have a foreign currency account and want to put some of their balance into a higher interest earning savings account.
Benefits of a Foreign Currency Account
One of the benefits of having a foreign currency bank account is that you can also transfer money on a regular basis from home. Using a specialist foreign exchange brokerage company is one way of ensuring you make the most out of the exchange rates, rather then get stung by them. It also means you can save yourself the time, bother and expense of using a bureau de change.
Transferring Foreign Currency
If you're earning money abroad, it's also helpful to be able to put the foreign currency – whether its euros or dollars – into your foreign currency bank account directly, without having to exchange it back into sterling. This means you can avoid the foreign currency exchange rates and costs. It's worth remembering however that if you do transfer your foreign currency bank account back into sterling to take it home to the UK, you will pay tax and a bank fee.
Foreign Currency Bank Accounts
It's thought foreign currency bank accounts are worth investing in if you're living away for large amounts of the year, or of course, retiring abroad lock, stock and barrel. If you're spending the majority of your time in the UK then it makes sense to keep your bank account in UK sterling. This is because the pound is still strong and having an account in a weaker currency could see your finances being slowly eroded.
Foreign Currency Exchange Ltd is a commercial currency brokerage based in the UK. We help thousands of clients move hundreds of million pounds across the globe every day. From large businesses to private individuals who wish to send regular payments abroad, you can save money with us by getting better currency exchange rates than with your bank. The Foreign Currency Exchange buys currency at wholesale rates and can help you save money with our fast secure service. For more information contact us now, telephone +44 (0) 20 7989 0000 or email info@fcexchange.co.uk