A multi-currency account lets you send, receive, and hold payments in multiple currencies. It lets you avoid fluctuating conversion rates, which can sometimes be costly. A standard bank account automatically converts international currencies into local ones, which depending on the conversion rate at that time, may cause you to lose money. You can hold foreign currency in your account and convert it with multiple currency accounts when the conversion rates are in your favor.
How Do Multi-Currency Accounts Work?
A multi-currency account acts as an international checking account with multiple sub-accounts for different currencies. It allows an account number for each coin, so you send and receive payments in that account. Your details, such as name and SWIFT code, remain the same for all currencies you hold. It supports regular banking actions such as money withdrawal, sending and receiving payments, accessing funds with cheques or e-wallets, and earning interest. A multi-currency account saves time, money, and sanity on international fees, which brings many benefits to a business.
Benefits Of Opening Multi-Currency Accounts In Singapore:
Business owners can open multiple currency accounts in Singapore that supports their preferred currencies like USD, EUR, GBP, AUD, IDR, and many more. The number of currencies depends on their service provider across the globe. Moreover, these bank accounts also help convert one currency into another, like SGD to USD.
- A multi-currency business account is beneficial if your business sends or receives payments internationally, buys or sells goods in multiple locations across borders, or has a global workforce, vendors, or consultants. It enables you to send and receive payments hassle-free under one account.
- A multi-currency account allows you to create sub-accounts for different currencies. You can share the unique account number for each currency and send or receive payments quickly, which is very convenient. Some businesses open multiple bank accounts in different countries to send and receive payments in local currencies. But it adds the burden of maintaining a minimum balance in each of them and is inconvenient too.
- Saving currency conversion costs is the chief benefit of a multi-currency account. When you receive an international payment, banks must convert them into your local currency. They deduct money as per the ever-changing foreign exchange rates. Moreover, A multi-currency account allows you to receive the payment in foreign currency and hold it till the conversion rate is favorable. It eliminates market uncertainty, so you never lose money due to high conversion rates.
- Merchants often hold receivables because the conversion rates are not in their favor. But with a multi-currency account, you can send or receive money anytime and convert it later. Therefore, one can accept payments in your client or customer’s local currency and pay vendors in their preferred currencies with a multi-currency account.
Business owners can compare multiple service providers to choose the best multi-currency account in Singapore, but the process and requirements differ for each. You can enjoy more than sixty different currencies depending on your chosen provider. There will be additional benefits and charges for each of them. For instance, banks charge a percentage or fixed amount for various account actions such as service charges and withdrawal charges.