saving account in Euros

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cisko65
cisko65 Posts: 233 Forumite
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in Savings & investments
I would like to open a saving account in Euros. I have a Euro account with Barclay but interest is 0%.
Any suggestions?
Thanks
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  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    What sort of sums would you be saving ?
  • cisko65
    cisko65 Posts: 233 Forumite
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    edited 17 May 2019 at 5:03PM
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    40,000 euros
  • Voyager2002
    Voyager2002 Posts: 15,284 Forumite
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    Euro interest rates are currently even lower than sterling interest rates. In practice it is highly unlikely that any Euro-denominated account will pay interest above the rate of inflation. So your plan is an excellent way to lose money: unless the Euro goes up against Sterling or whatever other currencies are relevant to you.
  • cisko65
    cisko65 Posts: 233 Forumite
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    Voyager2002 wrote: »
    Euro interest rates are currently even lower than sterling interest rates. In practice it is highly unlikely that any Euro-denominated account will pay interest above the rate of inflation. So your plan is an excellent way to lose money: unless the Euro goes up against Sterling or whatever other currencies are relevant to you.

    I already have Euros in the UK and I don't want to exchange them into sterlings (I might need fundings in euro in the future). A low interest rate is better than the 0% I have with Barclays. Cannot find banks offering some interests for euros, even if low.
    Thanks
  • cisko65
    cisko65 Posts: 233 Forumite
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    AnotherJoe wrote: »
    What sort of sums would you be saving ?

    Pls see my new reply to your question. I amended it as gave the wrong details.
  • londoninvestor
    londoninvestor Posts: 1,350 Forumite
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    edited 17 May 2019 at 8:47PM
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    First thing to bear in mind is the negative interest rate policy of the ECB. So in a sense, you're already ahead since your euro balance sits in your account without losing anything. Institutional EUR depositors get a negative interest rate, i.e. they're charged for holding euros.

    And investors in high-quality EUR bonds see a negative rate for any maturity shorter than about 10 years - have a look at the yield curve here:
    https://www.ecb.europa.eu/stats/financial_markets_and_interest_rates/euro_area_yield_curves/html/index.en.html

    I haven't looked for a while, but previously I haven't found a EUR account that pays interest and that someone who's a UK citizen and resident can open.

    If you're a citizen of another eurozone country, you may be able to find accounts with that country's banks that pay a small amount of interest and are available to non-resident citizens. (KBC offer some accounts if you're an Irish citizen, for example.)

    raisin.com (not .co.uk) is a decent place to look as it aggregates offers from various European banks.
  • Aidanmc
    Aidanmc Posts: 733 Forumite
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    Irish bank 'Permnent TSB ' accounts are available to non-residents and as mentioned above KBC may also be available.
  • cisko65
    cisko65 Posts: 233 Forumite
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    londoninvestor wrote: »
    First thing to bear in mind is that the interest rate policy of the ECB. So in a sense, you're already ahead since your euro balance sits in your account without losing anything. Institutional EUR depositors get a negative interest rate, i.e. they're charged for holding euros.

    And investors in high-quality EUR bonds see a negative rate for any maturity shorter than about 10 years - have a look at the yield curve here:
    https://www.ecb.europa.eu/stats/financial_markets_and_interest_rates/euro_area_yield_curves/html/index.en.html

    I haven't looked for a while, but previously I haven't found a EUR account that pays interest and that someone who's a UK citizen and resident can open.

    If you're a citizen of another eurozone country, you may be able to find accounts with that country's banks that pay a small amount of interest and are available to non-resident citizens. (KBC offer some accounts if you're an Irish citizen, for example.)
    raisin.com (not .co.uk) is a decent place to look as it aggregates offers from various European banks.

    Thanks.
    I am a UK resident, but a citizen of another Euro zone country.
    I wish exchange rates of Euro into pounds were better. It would be a big loss to change now.
    I heard that investment in euros or dollars are possible. A bit complicated for me. I would need to find a broker.
  • Aidanmc
    Aidanmc Posts: 733 Forumite
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    Fineco bank has multi currency accounts but pay no interest. They seem to have quite a comprehensive investment platform though of shares and ETFs .
  • bd10
    bd10 Posts: 347 Forumite
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    As it was previously mentioned, interest rates in Euroland are next to nothing for 10 years out (see German bunds). If the objective is to protect savings in EUR in case Sterling were to severely depreciate thanks to the political uncertainty, then you can always keep your EUR invested in EUR assets, be they bonds, low-risk equities or alike. Check the prospectuses of global bond funds how much they hold in EUR bonds. Just an idea.
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