The Advantages of International Multi-Currency Account

What is a multi-currency bank account?

A multi-currency bank account is a type of bank account, which allows you to receive, pay, and hold multiple currencies. With a multi-currency account, you may deposit and withdraw cash in different currencies. It enables you to do transactions involving various currencies through a single platform. You need not open separate accounts in respective countries for each currency you deal with.

Foreign currency account helps reduce fees for currency exchanges and is perfect for managing different international transactions in one place. It is especially useful for frequent travelers and businesses who often transact in multiple countries.

International multi-currency accounts have also become popular outside of India as investment options. Individuals and businesses keen to protect themselves from exchange rate volatility find it useful to save some money in foreign currency accounts, particularly US Dollars, and Euro accounts.

What are the features of a multi-currency bank account?

While the exact features of a multi-currency account differ between providers, certain basic features are common.

  • As the name suggests, a multi-currency bank account allows you to hold multiple currencies in the same account, such as USD, EUR, and GBP.
  • Having multiple currencies allows you to transact in each of the held currencies. The account makes it more convenient to manage transactions and maintain records through a single point of reference.
  • Ease of use, with different features such as standard login details, apps, and online banking features.
  • Many banks also offer a multi-currency debit card that allows you to spend in local currency while traveling, while getting the best exchange rates

How Does an International Multi-currency Bank Account Work?

A multi-currency bank account works similarly to an online bank account. You can send money, receive it, and withdraw cash as per your requirements. You can access funds via debit cards, electronic payments, and wire transfers. Most of the time, you do not have access to a physical branch, but customer support is offered online or over the phone.

Benefits of a multi-currency account

There are several benefits of a multi-currency account that distinguish it from a normal bank account. Some of them are:

a. Reduced Transaction Costs

If you open separate accounts in different countries and currencies, each bank may charge an account maintenance fee. Foreign banks often also have a large minimum balance required to make it worth their while to process account openings. There may also be transaction-level charges, especially for any foreign wire transfers.

A foreign currency account eliminates many of these extra charges, and you just need to pay a small single account fee. There is no minimum account balance requirement and FX conversion is at extremely competitive rates.

b. Manage Forex Easily

Forex or foreign exchange management is another feature to consider. With a multi-currency investment account, you can manage FX volatility by moving your balance to another currency. With a multi-currency account, you may accept payment in any currency and spend it in that currency without any exchange costs. As these accounts work like holding accounts, you can also wait for a favorable exchange rate before converting one currency into the other.

c. Simplicity and Convenience

Multi-currency accounts are easy to open and manage, as everything is in one place. Monthly accounting is less demanding and there is no juggling with different banks in different jurisdictions. Additionally, it’s easy to track your income and spending. Better housekeeping all around.

d. No More Waiting

International transactions are time-consuming – it’s the truth, and we all hate it.

With a multi-currency account, you can make or receive payments in local currencies and eliminate the waiting period with faster local settlements.

e. Digital banking experience

When you open a multi-currency bank account, you can access the bank account from any corner of the world, anytime. You can easily make & receive payments digitally without the need to visit a bank physically.

How can you get a multi-currency account in India?

Indian banks offer resident foreign currency accounts to the only NRIs who have returned to India. For other Indian residents, a few foreign banks like HSBC and Citi may offer international accounts, but those typically come with high minimum balance requirements and are reserved for premier clients.

Winvesta is the first and the only platform that can offer foreign currency accounts to Indian residents without the need for a minimum balance or heavy monthly charges. We have made it affordable and convenient for every Indian to own an international multi-currency account.

Conclusion

We are moving towards a new world. Multi-currency accounts represent today’s financial choices and benefits. These accounts are considered by some to be the wave of the future for financial transactions. 

Getting a multi-currency is no more as difficult or expensive as it used to be. With international neo-banks like Winvesta, you can get a multi-currency account in minutes, right from the comfort of your home.

Prateek Jain

Contributed by Swastik Nigam

Swastik is the Founder & CEO of Winvesta. Before Winvesta, Swastik was a Director at Deutsche Bank where he ran a multi-billion EUR global trading book on multi-asset products.

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