Get paid in Euros - Should I open a Euro account?

m4rk44

Hi

I have recently started working regular for a company who pays me in Euros.

This is my sole salary income at the moment so I am contemplating opening a Euro account. I have had 4 payments from my company now and just had them paid to my sterling account with Lloyds. I know you don't exactly get the best rate doing this.

I have had advice from people who believe continuing what I am doing is the best thing to do and advice from people who believe opening a Euro account is best. So I am a bit lost and not so knowledgable on the subject. The reason I have started to think about opening one is because last time I was paid in Euros, the rate was approx 1.1 and now its approx 1.35, so I am "losing out" in comparison - which makes a big difference on my net income.

I understand that when you have Euros sitting in an account the rate can go up as well as down but I can afford to have them sitting in an account for a little while (about 3/4 months) and use my saving to live for that time - but then the worry is if the rate is worse for me and i'll kick myself for opening a Euro account, bringing myself full circle back to thinking that I should continue having them paid in my current account!

I hope this all makes sense and any advice would be greatly appreciated.

Thanks, Mark.

benjus

Well no-one can tell you if the EUR/GBP rate will go up or down. But leaving that aside for a minute you're likely to be better off being paid into a Euro account and immediately transferring it into your GBP account using a service like TransferWise rather than being paid directly into your GBP account.

Are you living in the UK? If so I'm not aware of any free Euro accounts that you can open from here (there used to be a couple of German banks that would open accounts for UK residents but it seems that they no longer do this).

I have a Euro account with http://britline.com/ (based in France) which costs about €0.70 a month to run (without a debit card) so would possibly fit the bill for you as a place to store Euros or transfer to your GBP account.

Alternatively, if you do intend to keep a fairly large balance you may find that some Euro accounts with UK banks are free as long as the balance stays above a certain level.

grumbler

benjus wrote: »

...you're likely to be better off being paid into a Euro account and immediately transferring it into your GBP account using a service like TransferWise rather than being paid directly into your GBP account.

Are you living in the UK?
...
Alternatively, if you do intend to keep a fairly large balance you may find that some Euro accounts with UK banks are free as long as the balance stays above a certain level.

This is a big question as in UK a transfer from a € account can cost up to ~£20.

Ballard

benjus wrote: »

Alternatively, if you do intend to keep a fairly large balance you may find that some Euro accounts with UK banks are free as long as the balance stays above a certain level.

With Euro interest rates currently negative I would expect to be charged interest for funds to be left in an account.

m4rk44

Thank you for the replies.

Yes I do live in the UK. That was partly my concern - it can cost a fair bit to change money over and Im not so sure the best way to do so. I'd maybe get a better rate but wold the charges etc. be worth it in the long run?

Thanks - I'll have a look at Britain and Trasferwise.

m4rk44

Its probably also worth noting that they pay for all the fees for the transfer, so i'm only left battling getting a better rate rather than accepting the set rate by my bank (Lloyds).

grumbler

m4rk44 wrote: »

Its probably also worth noting that they pay for all the fees for the transfer, so i'm only left battling getting a better rate rather than accepting the set rate by my bank (Lloyds).

Does not Lloyds charge £7 as well for incoming international transfers £100+?
If they do you can save by changing the bank.

m4rk44

grumbler wrote: »

Does not Lloyds charge £7 as well for incoming international transfers £100+?
If they do you can save by changing the bank.

Possibly they do, I honestly couldn't say off the top of my head - but I get that covered by the other side (my company) covering a faster payment plus charges. So on my statement I see that they sent me €X at 1.38 exchange rate and receive the equivalent in £.

Ive had a look at Transferwise and from what I have learned on the site they offer the middle market rate and I'm better off for up to £200 per month going that route. I will however look at Lloyds international banking and also other banks and charges. But one transaction alone (amount saved) covers the monthly fee.

Really appreciate both of your help so far - thank you.

grumbler

m4rk44 wrote: »

Possibly they do, I honestly couldn't say off the top of my head

Banking charges guide (PDF, 184 kB)
"Electronic payments received from abroad.
Receiving a payment up to £100 – £2 fee
Receiving a payment of £100 or over – £7 "

- but I get that covered by the other side (my company) covering a faster payment plus charges.

How can they know about this charge?