Opening an Account with DKB in Germany?

freebeer

callum9999 wrote: »

I see - so your family give you more Euros than you ever spend while you're over there? Otherwise a fee-free GBP account from the UK is better value - these are only worthwhile if you receive more Euros than you can personally spend.

How is it better value since the DKB account is also free and also gives you a euro visa card that you can use anywhere without any charges? The only hassle is to open the account and manage it in German.

callum9999

freebeer wrote: »

How is it better value since the DKB account is also free and also gives you a euro visa card that you can use anywhere without any charges? The only hassle is to open the account and manage it in German.

Well as I said, it depends on you. If all your spending money is given to you in Euros while you're there, it's better. If you have to transfer across any money yourself then it isn't.

No matter how good your broker fees are, they are still more than the 0% charged by Metrobank and N&P on their UK GBP accounts.

If you withdraw €250 today with one of their debit cards you'll be charged £196.42. What does your broker offer?

As I said, it depends how you use it - it could well be cheaper for you. But it's not going to be cheaper for the vast majority (hedging your bets by pre-buying currency when you believe it's cheap etc. aside).

freebeer

callum9999 wrote: »

No matter how good your broker fees are, they are still more than the 0% charged by Metrobank and N&P on their UK GBP accounts.

Ah yes I see your point.

Indeed Metrobank and Norwich & Peterborough BS are better options if you just want to withdraw cash abroad at the best rate on the day with no fees, although from what I read, you have to apply physically in London for Metrobank and N&P has a few restrictions as well.

As I wrote earlier, DKB isn't really suitable for casual holidays. Most people who open an account with them probably have some family abroad or do it for business reasons.

callum9999

freebeer wrote: »

Ah yes I see your point.

Indeed Metrobank and Norwich & Peterborough BS are better options if you just want to withdraw cash abroad at the best rate on the day with no fees, although from what I read, you have to apply physically in London for Metrobank and N&P has a few restrictions as well.

As I wrote earlier, DKB isn't really suitable for casual holidays. Most people who open an account with them probably have some family abroad or do it for business reasons.

N&P do have restrictions, but they are easy. I applied online, and I personally fulfil all the restrictions by having 5 1p standing orders paid in every month from my other account. That fulfils their minimum 5 transactions per month.

I guess we just got our wires crossed somewhere though! I get the impression that several people on here (not just in this thread - it's been raised before) get the account for spending their GBP abroad. Not necessarily just casual holidays, but maybe they are going to live in France for a year etc. It seems a great account for business use and if you need to be able to receive Euros from people (looking back - it seems you and your family lend/gift money back and forth? I think I just assumed you meant you'd pay for dinner and they'd give you €50 to cover it later on etc.) - but no matter the amount, and no matter the reason for you being there, accessing your GBP in the Eurozone is going to be cheaper with a 0% GBP account than a 0% Euro account.

(I'm sure you know this - but I'm just clarifying for others who may be reading!).

freebeer

callum9999 wrote: »

It seems a great account for business use and if you need to be able to receive Euros from people (looking back - it seems you and your family lend/gift money back and forth? I think I just assumed you meant you'd pay for dinner and they'd give you €50 to cover it later on etc.) - but no matter the amount, and no matter the reason for you being there, accessing your GBP in the Eurozone is going to be cheaper with a 0% GBP account than a 0% Euro account.

Yes, thanks for clarifying this! It's really useful to receive bank payments in euros, not really just spending on it.

Also, nice tip about the 1p transactions for N&P

putout

callum9999 wrote: »

but no matter the amount, and no matter the reason for you being there, accessing your GBP in the Eurozone is going to be cheaper with a 0% GBP account than a 0% Euro account.

It seems you are using this as your main argument. I have two rebuttals for this:

1) The 0% only refers to 0% over the MasterCard/Visa rates, which is actually still slightly worse than the interbank rate (but not by very much). However with an online specialist it is possible to push very very close to the interbank rate, especially for large amounts.

2) Much greater advantages in rates can be gained through speculatively buying euros when the rate is good, rather than being entrapped to the time you go on holiday.

callum9999

putout wrote: »

It seems you are using this as your main argument. I have two rebuttals for this:

1) The 0% only refers to 0% over the MasterCard/Visa rates, which is actually still slightly worse than the interbank rate (but not by very much). However with an online specialist it is possible to push very very close to the interbank rate, especially for large amounts.

2) Much greater advantages in rates can be gained through speculatively buying euros when the rate is good, rather than being entrapped to the time you go on holiday.

1) Visa doesn't think so. The current interbank rate would give you €318.41 for £250, Visa currently claim to give you €320.01. Unless either website is lying to me (which they could well be - stuff goes out of date quickly in the currency markets!)?

2) Yes they could be, but if you're going down that road you're basically getting into currency trading, not just converting your money. Conversely, the rate could just as easily (assuming you are the average person using this website, and not a world-respected expert on the Euro) get even better after you've already converted it.

Incidently, currencyfair are currently quoting €313.56.

I'm not saying using N&P etc. instead would bring an enormous benefit to anyone - merely it makes the hassles of opening and operating a German account rather redundant for the average person.

putout

callum9999 wrote: »

1) Visa doesn't think so. The current interbank rate would give you €318.41 for £250, Visa currently claim to give you €320.01. Unless either website is lying to me (which they could well be - stuff goes out of date quickly in the currency markets!)?

1) It might be a daily average (which could actually be based on the previous day). Certainly they seem to have a constant rate for all transactions on a certain day.

callum9999 wrote: »

2) Yes they could be, but if you're going down that road you're basically getting into currency trading, not just converting your money. Conversely, the rate could just as easily (assuming you are the average person using this website, and not a world-respected expert on the Euro) get even better after you've already converted it.

2) That is certainly true, but it does give me the flexibility to buy Euros in advance if the rate seems irrestible - to hedge the risk I could buy say half of what I need and then leave the other half til the holiday.

callum9999 wrote: »

I'm not saying using N&P etc. instead would bring an enormous benefit to anyone - merely it makes the hassles of opening and operating a German account rather redundant for the average person.

I agree the hassle of opening and managing the account is probably not worth it for the average person not having an euro income. However for those that has an account anyway (say if the person had euro income in the past but doesn't anymore) it's still a nice account to keep open and I could see potential times for using it over my GBP account for a holiday.