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will the euro crash? Should I save in euros or pounds?

I have some savings in euros as Im paid in euros but I also have my bank account un UK.
Im worried about what may happen to the euro with the state of euro zone, should i transfer my savings from euros into pounds? Will I get more for my money now or will it not make any difference? If so what is the best way of doing this?

I will be returning to UK at some point.

Thanks for any tips/advice.

Comments

  • jimjames
    jimjames Posts: 18,884 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    If you are paid in euros and spend in euros then the rate doesn't matter much. If you are transferring money then you want a weak pound to get more of them per euro so now would look to be a good time in comparison to recent past rates.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • lvader
    lvader Posts: 2,579 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    You should look to move the money over a period of time to spread the risk.
  • Kia_Chia
    Kia_Chia Posts: 12 Forumite
    Part of the Furniture Combo Breaker
    Thanks for your responses.
    Should i just transfer from one bank to the other or is there a better way?
    And once I do transfer, how can I maximise on savings? I know interest rates are low now but what the best way to save? eg an ISA? (I just have an internet online savings account)
  • The crux of the matter is surely this:
    I will be returning to UK at some point.
    If by that you mean that your long term liabilities definitely lie in the UK ie in Sterling then unless you are an expert in arbitrage risks, and unless you don't really mean that you will definitely be returning, then you should surely already be converting as much into Sterling based assets as you can? What do you gain by waiting if you haven't a clue what the waiting will yield? Keeping Euros which you may never spend doesn't spread risk, it creates risk. If you convert now, then at least you know what you can spend in the UK, now or later.

    As for risk, the Euro might crash but Sterling might be urged to over the edge with it, especially if the Bank of England gives it a push - didn't Mervyn King say tonight that a weaker pound would aid growth (as if it wasn't weak enough already).
  • Kia_Chia
    Kia_Chia Posts: 12 Forumite
    Part of the Furniture Combo Breaker
    Yes youre right. I havent thought about it like that before. (Not called a moneysaving newbie for nothing) Having only just paid my last payment to the student loans company, watching my savings grow in my euro account was a new experience for me.
  • gozomark
    gozomark Posts: 2,069 Forumite
    Kia_Chia wrote: »
    And once I do transfer, how can I maximise on savings? I know interest rates are low now but what the best way to save? eg an ISA? (I just have an internet online savings account)

    As you are non UK resident, you cannot put money into an ISA
  • Voyager2002
    Voyager2002 Posts: 16,349 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Banks are likely to charge hefty commissions on Euro-sterling transfers. Investigate the currency brokers discussed on this site and elsewhere, who are likely to give you more pounds in your UK bank account for every 100 Euro that leaves your foreign account.
  • Kia_Chia
    Kia_Chia Posts: 12 Forumite
    Part of the Furniture Combo Breaker
    gozomark wrote: »
    As you are non UK resident, you cannot put money into an ISA

    so what are the options then - a savings account? and what if i applied to my uk bank that I alreday have an account with?
  • Kia_Chia
    Kia_Chia Posts: 12 Forumite
    Part of the Furniture Combo Breaker
    Banks are likely to charge hefty commissions on Euro-sterling transfers. Investigate the currency brokers discussed on this site and elsewhere, who are likely to give you more pounds in your UK bank account for every 100 Euro that leaves your foreign account.

    what are currency brokers?
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