Manage your transactions abroad with a foreign currency account

Keep track of worldwide financial obligations from one place.

Shirley Liu's headshot

By

Shirley Liu

Updated

Fact checked

If you often make payments abroad, today’s online money specialists can help you keep on top of your business overseas or take care of family members back home from one flexible account. These foreign currency accounts aren’t just about helping you manage your finances – you’ll also save time and money with streamlined transactions.

Reviews of cards you can hold multiple currencies on

Revolut Standard

Revolut Standard

8.9 Great
Minimum opening balance£0
Account fees£0
Interest (AER)0% AER
Go to site Read review

With the Revolut standard plan, customers can make international payments in more than 150 currencies (fees may apply), and exchange up to £1,000 per rolling month in multiple currencies, with no additional fees on weekdays. You can also spend on your Revolut card for free and withdraw up to £200 a month (or 5 withdrawals per month) with no charges. The account has no monthly fee, is easy to apply for via the app, and you can be up and running in a matter of minutes. A further benefit of the account includes the ability to earn RevPoints when booking accommodation with Revolut Stays. RevPoints are earned through everyday spending, turning card purchases into perks.

Starling Current Account

Starling Current Account

9.8 Excellent
Account fees£0
Interest (AER)0% AER
See dealRead review

Starling lets you hold a GBP account for free and enables you to send money overseas at competitive rates. But on top of this, you can choose to set up a euro account and hold, send and receive euros for free, making it ideal if you have family in Europe. You can also use a single debit card to manage both your EUR and GBP accounts. If you want your EUR card transactions to come from your EUR account, simply select the 'card and currency controls section' within the app and turn it on. There are no fees for using your debit card abroad or in the UK.

Representative example: If you use an arranged overdraft of £1,200, you'll be charged interest at 15% EAR variable.

Monzo Current Account

Monzo Current Account

9.3 Excellent
Minimum opening balance£0
Account fees£0
Interest (AER)0% AER
Go to site Read review

Monzo customers can receive money into their account in more than 40 different currencies. All you need to do is share your IBAN with the person or company that's paying you. Note that a 1% conversion fee applies and there's a cap of £1,000 per transaction. The bank has also partnered with Wise to give you an easy way to send money abroad (again, a fee applies). You can apply for a Monzo current account in just 15 minutes and there are 4 plans to choose from, one of which has no monthly fee. Your money will be protected up to £120,000 by the FSCS.

Representative example: If you use an arranged overdraft of £1,200, you'll be charged interest at 39% EAR variable.

iFAST Global Bank Multi-Currency Current Account

iFAST Global Bank Multi-Currency Current Account

7.5 Great
Account fees£0
Interest (AER)2.65% AER
Read review
Get up to £200 when you switch to iFAST Global Bank.

iFAST Global offers a multi-currency account that allows you to send, receive and hold funds in 9 major currencies. The account is an instant access account, so you can withdraw funds as needed, but you’ll also earn interest on your balance. How much you earn depends on the currency you hold. Additionally, there’s the option to open a fixed term deposit account, notice account or cash ISA with the bank if you wish to set aside extra cash for savings purposes. There are no fees for opening or maintaining any of iFAST Global’s accounts.

What is a foreign currency account?

A foreign currency account, also called a multicurrency or borderless account, is a type of account that lets you send and receive funds in multiple foreign currencies, potentially changing your current way of conducting international business. Through these borderless accounts, funds are either exchanged into pounds sterling or held in the currency of the transaction until you’re ready to exchange them.

You can use a foreign currency account for business and personal needs. And depending on the account, your balance may even earn you interest.

An international bank like HSBC or Barclays may allow you to deposit and withdraw money from your foreign currency account at a branch or online. Some only offer major currencies – pounds, euros and dollars, for example – for withdrawal at a branch.

For the more experienced investors, there are also forex trading tools that simplify buying and selling foreign currencies.

How does a foreign currency account work?

Your typical bank account generally converts money to and from pounds sterling for transactions in foreign currencies. However, a foreign currency account allows you to send and receive funds in multiple currencies. You save time with a streamlined transaction and money by avoiding the high fees that come with conversions. And you won’t need to worry about short-term currency fluctuations affecting your bottom line.

The ability to switch among currencies helps you to take advantage of strong exchange rates and send money overseas without the extra charges you’d typically pay for wire or bank-to-bank transfers.

Currencies typically accepted into a foreign currency account include:

  • Great Britain pounds sterling (GBP)
  • euros (EUR)
  • Hong Kong dollars (HKD)
  • US dollars (USD)
  • Australian dollars (AUD)
  • Canadian dollars (CAD)
  • Japanese yen (JPY)
  • New Zealand dollars (NZD)
  • Singapore dollars (SGD)
  • Renminbi (RMB), though currency restrictions often apply

What are the pros and cons of a foreign currency account?

Convenient borderless accounts can save you time and money, but they aren’t without risks. Protect yourself by watching out for these pros and cons:

Pros

  • Hold multiple currencies. Send and receive funds in different currencies while avoiding an exchange between them. If you deal in minor or exotic foreign currencies, look into international money transfer specialists that accept a wider range of less common transactions.
  • Leverage exchange rates. Most accounts let you switch among currencies to take advantage of strong exchange rates, which can keep a ton of money in your pocket if you conduct large transactions.
  • Earn interest on your currencies. Many foreign currency accounts pay you interest on select currencies. Interest is typically offered in tiers, with better rates going to larger balances.
  • Overdraft protection. If you're unsure of the timing of your foreign currency payments, many banks allow you to go into a temporary deficit on specific currencies – although you may be charged a fee.

Cons

  • Miscellaneous fees. You can expect to be charged special cash handling and overdraft fees on some of your transactions. Find the lowest fees you're eligible for when deciding on an account.
  • High minimum balances. Your bank may require a daily minimum balance before hitting you with high fees. HSBC and other international banks don't require minimums, however.
  • Low interest. If your account offers interest, don't expect the rate to be as high as your standard savings account. Foreign currency accounts are notorious for low interest rates.
  • Currency value changes. The value of your money fluctuates constantly. A sudden rise or fall affects the total balance of your foreign currency account.

How do I compare foreign currency accounts?

Find a foreign currency account that’s flexible enough for your needs by comparing accounts across multiple banks. Weigh factors among them that include:

  • Supported currencies. Many banks support at least a handful of major currencies, but make sure those you frequently conduct business in are accepted.
  • Account minimum. Some banks require a minimum monthly account balance. Find one that matches your cash flow to avoid high fees and penalties.
  • Account fees. Ask for a complete list of fees to avoid the surprise of a high maintenance fee on your account each month. Look also for processing or handling fees on specific currencies and transactions.
  • Currency conversion charges. In addition to exchange rate differences, your bank might charge a fee each time you convert your money into another currency.
  • Transfer amounts. Transaction limitations vary by bank, so you’ll want to make sure your account can handle payment amounts typical for your business – minimums and maximums.
  • Turnaround speed. Before choosing an account, learn how long the typical transaction takes between your home bank and accounts overseas.
  • Flexibility and support. Some foreign currency accounts allow for transfers, deposits and withdrawals over the phone, online or at a branch. Ask about fees related to each option.

Can I only get a foreign currency account from a high street bank?

No, there are a selection of digital-only and app-based financial services providers that offer competitive foreign currency transfer services, as well as accounts you can use while travelling. These include:

  • Starling Bank. The digital challenger bank not only offers fee-free overseas spending with its debit card, making it one of the most-pain-free ways to access and spend your money abroad, but it also offers existing current account holders the option to open a second Euro-denominated account. Transfers between the two accounts don’t incur any fees, while the currency exchange will be made at the interbank exchange rate. You can use a single debit card to manage both your existing GBP account and the EUR account, by switching a setting in the Starling Bank app.
  • Revolut. The digital-only banking app offers several accounts which include an array of useful features for frequent travellers. These include no conversion or bank fees on spending overseas, alongside fee-free cash withdrawals up to £800 a month, depending on your account.
  • Wise. This money transfer service offers a low-cost way to send cash internationally in a range of popular currencies. The firm also offers a multi-currency account that supports more than 40 currencies. Wise doesn’t charge multi-currency account holders any fees when spending in any of the currencies held in the account.

What fees can I expect?

A borderless account can come with monthly, maintenance and transaction fees that could quickly eat into your balance. Shop around for a bank and account that minimises charges such as:

  • Deposit or withdrawal fees. Many banks offer unlimited deposits or allow a set number of fee-free withdrawals monthly.
  • Monthly service charges. If you can’t find an account with no service fees, look for one that waives fees with high balances. And make sure you can meet this requirement.
  • Transaction fees. Many international banks have worldwide partnerships that can minimise how much you’re charged for each transaction.
  • Cash-handling fees. Some banks limit how much you can deposit to your account within a specified period. If you exceed this limit, you’re charged a fee to process future deposits.
  • Overdraft fees. Like typical bank accounts, you could pay overdraft fees if your account balance dips below zero.

When comparing accounts, know roughly how many transactions you expect to conduct through your account. Many accounts offer free unlimited deposits for high numbers of transactions monthly.

How do I open a foreign currency account?

Signing up for a foreign currency account isn’t much different from opening any other type of bank account. You’ll need your basic personal and financial information, along with the standard forms of government-issued ID.

Focus on banks that offer foreign currency accounts, like:

  • HSBC
  • Barclays
  • Santander
  • Metro Bank
  • Citibank
  • Halifax

You may be able to start the process of opening an account online. If not, call a representative to get started.

Bottom line

If you make transactions in other currencies on a regular basis, a borderless account can help save time and money. Whether it’s for personal or business purposes, this type of account can allow you to manage multiple currencies, get better exchange rates and streamline the process of sending and receiving money. Foreign transaction accounts are available from many large banks; just make sure to be aware of any fees before you sign up.

Frequently asked questions

Our “Best for” picks highlight top options in specific categories based on our independent evaluation (see our full methodology), while “Promoted” tags indicate sponsored placements. Selected products may not suit everyone. We track selected market offers, which may not cover every product. Products are listed in no particular order unless specified, and inclusion or ordering may be influenced by popularity or commercial agreements. Most comparison table data is provided by Defaqto or sourced directly from providers. Always evaluate your own circumstances and consider independent advice before making major financial decisions.
Shirley Liu's headshot
Written by

Publisher
Add to Preferred Sources

Shirley Liu is Finder's global program manager. She was previously the publisher for banking and investments and has also written comparisons for energy, money transfers, Uber Eats and many other topics. Shirley has a Master of Commerce and a Bachelor of Media, Journalism and Communications from the University of New South Wales. She is passionate about helping people find the best deal for their needs. See full bio

More resources on Finder

More guides on Finder

Go to site