If you’re a UK resident, you might be used to conducting most of your transactions in GBP but there are many reasons why people need to send and receive funds in Euros. When UK businesses employ staff based in Europe, for example, being able to pay wages in the individual’s home currency can be advantageous.
Alternatively, you might make regular purchases from EU-based businesses or rely on suppliers in Europe to keep your operations running. Conversely, your business may attract customers or clients from throughout the UK and being able to receive funds in Euros could enable you to increase your revenue.
With so many reasons to have a Euro account in the UK, it’s easy to see why an increasing number of people and businesses are choosing to open these types of accounts. In this article, we examine how a Euro account in the UK works, whether you need one and what benefits it can offer.
What Is a Euro Account in the UK?
A Euro account in the UK is simply an account that enables you to send and receive funds in Euros. Often known as a multicurrency account, you can actually send and receive funds in 39 different currencies, including EUR and GBP, when you sign up for PayAlly’s Euro account in the UK.
As you may know, UK accounts have account numbers and sort codes that are used when making transactions to and from other UK accounts. When you make an international transfer to a European account, however, you typically need to use additional account information, such as an International Bank Account Number (IBAN) and Business Identifier Code (BIC).
If you don’t have a Euro account in the UK, sending money to a recipient in the EU means making an international transfer. If you do have a Euro account in the UK, however, you gain access to localised account data. Essentially, this simplifies the transaction and allows you to send and receive international transfers as easily as if you were transferring funds between UK-based accounts.
Why Do You Need a Euro Account in the UK?
If you’re situated in the UK, it’s easy to assume that a standard GBP account will be sufficient to meet your needs. However, the internet has enabled the majority of businesses to operate globally, which means there is an increasing need to make international transfers in different currencies.
Whether you own or manage a business or you’re regularly trading with companies based outside the UK, a Euro account in the UK gives you the flexibility to hold, send and receive funds in Euros, as well as GBP.
Even UK-based businesses that are currently operating nationally can benefit from opening a Euro account in the UK as it gives you the scope to globalise your brand in accordance with your growth strategies.
What Are the Benefits of a Euro Account in the UK?
If you’re still unsure whether a Euro account in the UK is right for you, take a look at some of the benefits this type of account can offer:
Reduced Transaction Fees
Making an international transfer from a standard UK account can incur notable fees. While some international transfers are free or low cost, accessing the fastest transfer methods often means paying a higher charge. Similarly, sending money to an EU-based account from a standard UK account can attract high fees if you’re making regular cross-border transactions or transferring large amounts.
With a multicurrency Euro account in the UK, however, you’re localising these international payments and can, therefore, avoid the fees that are typically associated with international transfers. As a result, you can reduce your expenditure and conserve funds simply by opening a Euro account in the UK.
Convenience and Speed
If you’re sending and receiving funds in more than one currency without a multicurrency account, then chances are you’re either making regular international transfers or using more than one account to facilitate these transactions. Both of these options can be time-consuming and having a variety of accounts can make it hard to keep track of your finances.
In contrast, a Euro account in the UK allows you to make transactions in Euros as easily as if you were sending or receiving GBP. Additionally, having a single account to hold multiple currencies means it’s easy to gain visibility over your finances.
Less Exchange Rate Volatility
When you’re sending or receiving funds in a foreign currency, it’s vital to monitor the exchange rate to determine the value of your original funds (GBP) against the foreign currency (in this case, EUR). When a transaction is time-critical, however, you may have no choice but to accept an unfavourable exchange rate when making an international transfer. This effectively reduces the value of your funds and ends up costing you more.
With a multicurrency account, it’s easy to set up forward contracts that ‘lock in’ the current exchange rate and enable you to plan future cross-border transactions at a pre-agreed rate. This minimises risk and ensures you can capitalise on attractive exchange rates as the market changes.
Being able to make transactions in both GBP and EUR (and other currencies) delivers enhanced flexibility and means you’re able to engage with people and companies globally. Whether you’re making a one-off purchase, receiving funds on a regular basis or paying a subscription to an EU-based company, a multicurrency account gives you the functionality you need.
Open a Euro Account in the UK with PayAlly
Our multicurrency account allows you to send, hold and receive funds in 39 currencies, so it’s easy to facilitate transactions in Euros at any time. Designed to deliver security, flexibility and convenience, PayAlly’s multicurrency account makes international finances easier than ever.
To find out more about opening a Euro account in the UK or to apply for a multicurrency account now, talk to our team today.