What Is A Multicurrency Account, And Should You Get One?
What Is A Multicurrency Account, And Should You Get One?
Spencer Tierney Tue, February 15, 2022,
You might need a more global account for certain banking needs. That’s where a multicurrency account comes in. How it works, and other options that may work better for you
The minute you use your U.S. debit card or bank account abroad, your wallet may feel the impact. You may incur foreign transaction and ATM fees. Or your bank may decline debit card purchases if it doesn’t know you’re traveling. If you live or have close connections outside the U.S., you might need a more global account for certain banking needs. That’s where a multicurrency account comes in. Here’s how it works and how to know if one’s right for you.
What is a multicurrency account?
A multicurrency account is typically an account at a bank or financial tech firm that lets you spend, receive and hold multiple currencies. It can work like an international checking account with multiple subaccounts, each with a different currency. This lets you manage payments in a foreign currency instead of opening a new bank account overseas.
“Credit cards and multicurrency accounts allow you to spend as a local, but only multicurrency accounts allow you to quickly transfer and receive money,” says Leyla Beriker, product owner of U.S. payments at Revolut.
Most multicurrency accounts — also called foreign currency accounts — are reserved for businesses and high net worth individuals through international or private banking services at banks such as Citibank C, -0.07% and HSBC HSBC, -0.69%. Two notable exceptions are Wise WPLCF, -0.74% and Revolut, two fintech companies that offer multicurrency accounts for the general public and businesses.
When to choose a multicurrency account
1. You live or work outside the U.S.
A multicurrency account can be an easy way to avoid currency conversions every time you make a transaction. This removes the uncertainty in cost from constant exchange rate fluctuations.
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