euro saving

JustForThisOne

Goodmorning
first of all pls bear in mind that I am a total ignorant when it comes to understanding financial issues... :-)
I have some savings in euro in an italian bank which I plan to use for deposit on buying a flat. I am really concerned with what is going on in europe at the moment and I do not know if I should get it transferred to the uk asap.
This is the only money I am ever going to get as inheritance so I cannot make mistake.
Any thoughts and word of advice?
Thank you!

RetiredInThailand

Is it more or less than 100,000 Euros?

If less it is covered by the European bank deposit guarantee. If it is more then at least you should split it up over several banks.

There is a German bank that will open Euro accounts for non-residents. It pays 2% and is covered by a similar guarantee, though German. Someone posted the name on here the other day.

Of course if it all really goes belly-up, no one will honour the guarantees anyway, including in the UK. That probably wont happen.

JustForThisOne

Thanx
I am an uk resident actually. My question (sorry it was not clear) was more it is better to convert it now into pounds? or does not matter? by the way its <100

Masomnia

JustForThisOne wrote: »

Thanx
I am an uk resident actually. My question (sorry it was not clear) was more it is better to convert it now into pounds? or does not matter? by the way its <100

Doubt it's worth converting to pounds, if you're buying the property in Euros then you're just exposing yourself to currency risks.

I'd keep a very close eye on the Italian banking system, though.

JustForThisOne

Thanx
I am an uk resident actually. My question (sorry it was not clear) was more it is better to convert it now into pounds? or does not matter? by the way its <100

Sill worthy to check the german bank as the savings are just sitting there and it is actually expensive to keep it as italian banks to still charge ridiculous amount

Masomnia

JustForThisOne wrote: »

Thanx
I am an uk resident actually. My question (sorry it was not clear) was more it is better to convert it now into pounds? or does not matter? by the way its <100

Sill worthy to check the german bank as the savings are just sitting there and it is actually expensive to keep it as italian banks to still charge ridiculous amount

What I mean is, if you're buying the property in Euros then there's probably no point converting. If you're buying in pounds, then it's anyone's guess as to when would be a good time to change.

If it's less than the 100k Euros then I shouldn't worry too much, but bear in mind that a claim from the deposit scheme will take time to go through, and if you're looking to buy it could make it tricky.

JustForThisOne

Ok I hear what you are saying.
So in light of recent events the troubles in the economy in the eurozone do not necessarily mean at this stage that the euro is due to drammaticaly loose value...? (just having nightmare thinking to wake up one day and find the lira back!)

RetiredInThailand

JustForThisOne wrote: »

Thanx
I am an uk resident actually. My question (sorry it was not clear) was more it is better to convert it now into pounds? or does not matter? by the way its <100

I still dont understand where the property you are going to buy is situated. Is it Italy or the UK? Also when are you going to need it: next month, next year, 2020?

No point changing Euros to GBP if you will be needing them in Euros again soon, and the Euro could easily go up in value in the meantime if the politicians sort their mess out.

If the property is in the UK then at least if you change it now you will know exactly how much you have, and you should get a bit more interest on your GBP deposit than you would for Euros.

Thrugelmir

If the Eurozone was to collapse or the printing presses start to roll. Then the exchange rate will weaken meaning that you will receive less £'s for your Euro's.

Wasn't so long ago that the rate was over 1.40 - £1.

missile

The pound is at an 8 month high against the euro. Who know whether this trend will continue. Personaly I don't think it will. Over the last 10 years the £ has steadily declined in value against the euro.

FYI: I have 100,000+ euros and no intention of converting them any time soon.

atush

HSBC does good euro accts with internet banking. Mine is french based.

Barclays has a euro acct based in Ireland.