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  • FIRST POST
    • cisko65
    • By cisko65 16th May 19, 6:50 PM
    • 47Posts
    • 1Thanks
    cisko65
    saving account in Euros
    • #1
    • 16th May 19, 6:50 PM
    saving account in Euros 16th May 19 at 6:50 PM
    I would like to open a saving account in Euros. I have a Euro account with Barclay but interest is 0%.
    Any suggestions?
    Thanks
Page 1
    • AnotherJoe
    • By AnotherJoe 16th May 19, 6:59 PM
    • 14,251 Posts
    • 16,959 Thanks
    AnotherJoe
    • #2
    • 16th May 19, 6:59 PM
    • #2
    • 16th May 19, 6:59 PM
    What sort of sums would you be saving ?
    • cisko65
    • By cisko65 17th May 19, 9:21 AM
    • 47 Posts
    • 1 Thanks
    cisko65
    • #3
    • 17th May 19, 9:21 AM
    • #3
    • 17th May 19, 9:21 AM
    40,000 euros
    Last edited by cisko65; 17-05-2019 at 4:03 PM. Reason: gave wrong info
    • Voyager2002
    • By Voyager2002 17th May 19, 2:24 PM
    • 13,025 Posts
    • 8,950 Thanks
    Voyager2002
    • #4
    • 17th May 19, 2:24 PM
    • #4
    • 17th May 19, 2:24 PM
    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
    • By cisko65 17th May 19, 3:56 PM
    • 47 Posts
    • 1 Thanks
    cisko65
    • #5
    • 17th May 19, 3:56 PM
    • #5
    • 17th May 19, 3:56 PM
    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.
    Originally posted by Voyager2002
    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
    • By cisko65 17th May 19, 4:05 PM
    • 47 Posts
    • 1 Thanks
    cisko65
    • #6
    • 17th May 19, 4:05 PM
    • #6
    • 17th May 19, 4:05 PM
    What sort of sums would you be saving ?
    Originally posted by AnotherJoe
    Pls see my new reply to your question. I amended it as gave the wrong details.
    • londoninvestor
    • By londoninvestor 17th May 19, 6:35 PM
    • 994 Posts
    • 894 Thanks
    londoninvestor
    • #7
    • 17th May 19, 6:35 PM
    • #7
    • 17th May 19, 6:35 PM
    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.
    Last edited by londoninvestor; 17-05-2019 at 7:47 PM.
    • Aidanmc
    • By Aidanmc 17th May 19, 7:06 PM
    • 71 Posts
    • 22 Thanks
    Aidanmc
    • #8
    • 17th May 19, 7:06 PM
    • #8
    • 17th May 19, 7:06 PM
    Irish bank 'Permnent TSB ' accounts are available to non-residents and as mentioned above KBC may also be available.
    • cisko65
    • By cisko65 17th May 19, 7:08 PM
    • 47 Posts
    • 1 Thanks
    cisko65
    • #9
    • 17th May 19, 7:08 PM
    • #9
    • 17th May 19, 7:08 PM
    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.
    Originally posted by londoninvestor
    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
    • By Aidanmc 17th May 19, 7:31 PM
    • 71 Posts
    • 22 Thanks
    Aidanmc
    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
    • By bd10 17th May 19, 7:56 PM
    • 95 Posts
    • 42 Thanks
    bd10
    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.
    • Thrugelmir
    • By Thrugelmir 17th May 19, 10:01 PM
    • 63,125 Posts
    • 56,028 Thanks
    Thrugelmir
    I wish exchange rates of Euro into pounds were better. It would be a big loss to change now.
    Originally posted by cisko65
    Current rate is about as good as it's ever been. The real risk is that the recovers against the Euro in the future.
    "'The mistakes we make as investors is when the market's going up, we think it's going to go up forever. When the market goes down, we think it's going to go down forever. Neither of those things actually happen. Doesn't do anything forever. It's by the moment.'" - John Bogle
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