Euro vs Sterling- Managing my money in Europe

Libmeisterflex

I recently secured a job working on assignments around Europe- 4 different countries over 2 years. I will be paid in Sterling from the UK and will luckily get my living expenses paid for.

I have started in Ireland.

I have a UK bank account, credit card and savings account. I was told today that everytime I use these cards in a cash machine I am being charged, I was then asked in a shop if I wanted to pay in Sterling or Euros- Sterling with 'the shops exchange rate', this really confused me. I just chose Euros...

I don't know whether I should just open an Irish bank account and transfer a set amount into it each month- but then when I move countries open a local account in each place so that I mitigate charges and never use my credit card.

Everything is so much more expensive in shops in Ireland it seems to make sense to buy things online in Sterling and get them sent to the UK.

All very complicated and just need some advise from those who have been there/done that...

Thanks L :beer:

zagfles

If you're being paid in GBP then open an account with a bank which doesn't charge for forex transaction, eg MetroBank, N&P - see the article on the main site. I think N&P need you to pay a certain amount in each month so you could get your salarly paid in. You could also get a CC which doesn't charge eg Halifax Clarity - but pay off any cash advances ASAP to avoid interest. But if you're going to be abroad a lot using a fee free CC for purchases (eg Clarity) and a fee free bank account for cash withdrawals (eg MetroBank) is probably best.

Always pay in the local currency (Euros etc) otherwise you'll get ripped off on the exchange rate. Some unscrupulous retailers will put the transaction through in GBP without asking you - this violates VISA/MasterCard T&C's - if this ever happens don't sign/enter your PIN or demand a chargeback, and threaten to report them if you're feeling stroppy. I now take the precaution of always telling them to charge in Euros (/local currency) whenever I pay by CC. Cashpoints may also ask you - again always choose the local currency not GBP.

Voyager2002

If all four foreign countries use the Euro, then it would be worth your while to open a Euro account. I doubt whether an Irish bank would charge you fees for Euro transactions in other countries, but do check this. If so, then open Euro and Sterling accounts with Citibank in London: they give you an ATM card linked to the Euro account and there are absolutely no fees for using it.

zagfles

Voyager2002 wrote: »

If all four foreign countries use the Euro, then it would be worth your while to open a Euro account. I doubt whether an Irish bank would charge you fees for Euro transactions in other countries, but do check this. If so, then open Euro and Sterling accounts with Citibank in London: they give you an ATM card linked to the Euro account and there are absolutely no fees for using it.

As the OP is getting paid in GBP I can't really see the need for a EUR account - unless he needs to write EUR cheques or do EUR bank transfers. If all he needs are cash and CC spending then a GBP bank account and CC which don't charge forex fees (MetroBank, Clarity etc), should suffice.

Unless CitiBank offer better rates than wholesale VISA/MasterCard rates for transfers between their GBP and EUR accounts? Which I doubt as the VISA/MC rates are pretty much interbank.

Doshwaster

There may be some advantages in having a Euro account as well as a Sterling one. For example, it would allow you to have a Euro denominated debit/credit card or cheque book.

Have a look at banks which allow you to have parallel Euro and Sterling accounts like Citi Bank (http://www.citibank.co.uk/personal/banking/?merchant=citi) which are designed for people with international lifestyles. That way you can be paid in Sterling then switch spending money into the Euro account depending on what the exchange rate is.

benjus

A current account that's free to use overseas (such as Metro Bank, as mentioned above) would be the cheapest option, as if you open a Euro account you will have to pay the transfer fees to get your salary converted from GBP to EUR. Also remember that in many European countries current accounts (even basic ones) are not free like they are here.

On the other hand, if you want to be able to pay utility bills by direct debit, write and receive Euro cheques, etc. you will need a local account. That doesn't mean you have to use it as your main account, and you could top it up by withdrawing cash from your UK account and paying it into your local account.

ponymad_3

Depending on where you currently bank I would look at a Euro ac with that Bank... Depending on what bill you will be settlin it should work out better value, also your UK debit and CC are likely to get security checks and this can be a pain. I have a Euro ac and get it free , and when I need money for Euroland I just call up to trf across to that ac. I can then transfer back again if I need to. I do need to keep in 2500 in sterling to get free tho.

You will save usually as you will know what rate you re getttin .

HTH

knightstyle

Trouble is that you are only spending a short time in each country so by the time you have set up a bank account it will be time to move on. In France it took 4 months to get our current account set up and we needed utility bills etc. in our name.
So as you are being paid in UK get a Halifax Clarity card, use it for everything, pay in local currency, €, pay in full each month. If you need cash draw it from a machine and pay slightly more into the account immediately.
This is in my experience the cheapest way at the moment to spend in europe with a UK bank account.