Euro bank account

[Guest]

I'm having real difficulties working out how to get cash out whilst away without paying the 1% charge incurred by Visa. I need it to be internet based, leave cash in sterling and transfer from sterling account into a Euro account (with no charges for changing), then be able to take it out with a normal Switch type card. Has anyone found this holy grail cos I'm sick of talking to banks!

 

[Boatman]

?with no charges for changing? if they don?t charge they will give you an awful exchange rate, you will end up paying anyway. Even if your account is sterling, an Eurocard will work giving you Euros anywhere you want don?t know what the UK banks charge if anything, but my experience is that they are amongst the worst in the world.

 

[chrisc]

Worst way of changing money is in small amounts .
much better to open account in euros with card on
those little islands to SWof england and negotiate a
rate on say 20,000 pounds into euros.
seems the easiest thing to do these days after all you
can use euro for most of the med these days.
and if you stay in the west you will use nothing else.

 

[Guest]

If you are referring to the little Isles off SW England as the Channel Islands, then the following will put you right, as a Jersey resident. Individuals are not permitted to have Euro € accounts, only companies, and they are CONTROLLED by strict Due Dilligence regulations (I am an MD off such a company. It is easier for you to open an account in any of the EU countries that are part of the EURO. This is your right as a member of the EU, although the UK is not in Euroland. We have personal accounts in France, thus leaving the problems of credit card charges and the UK behind.

I trust that this is of assistance to you and others thinking the same.

 

[chrisc]

i take your poin on this and will bear it in mind

I am sure that this is of assistance to myself and others doing this.

 

[billskip]

Welcome to the forum and thank you for the info..

Bill
www.aegeansailing.co.uk

www.macsyachting.com

 

[bedouin]

Try Citibank - they tend to have the best facilities for internet-based and multi-currency accounts. I don't know the details.

 

[david_e]

Thanks and welcome, would you know the best way to buy a boat in France in Euro, say £45k's worth.

 

[Guest]

Also try First Direct (they're a division of Midland). They have been excellent, and specialise in not only telephone but also internet banking. My impression is that generally their exchange rates/charges tend to compare very favourably with other banks.

When I mentioned to them that I was buying a flat in Moscow, they even wanted to offer me a Russian mortgage in roubles. In the end they couldn't, but that was the fault of the Russian Central Bank, not their lack of keeness!

 

[Guest]

Depends on how your are approaching it.

Assuming you have found the vessel, and know what flag it is flying, and if you want to register it through Cardiff. Is the seller a company or private individual and are you sure of the legal ownership. The Cardiff registry will supply what you need, if it is to be taken off a foreign registry. If you do not have a Euro account, you can ask your bank for a banker's draft in the currency of your choice, and this is exchanged at the same time as the Bill of Sale is signed by both parties, including any caveats on both sides.

 

[summerwind]

You might well be sick of banks and you might have tried Lloyds TSB but they have a Euro denominated account. You will have to insist to the branch staff that it is available because many of them simply don't know.

I understand that there is an annual standing charge for the account of about £30.00 equivalent. I also understand that a debit card and full service internet banking are available.

 

[MedMan]

There is no way of making the transfer without any charges - Banks are not in business to be benevolent! However, some charge very much more than others. I was first put wise to the pit-falls in this particular jungle by an excellent Which? Magazine report I read some 4 years ago. It has saved me £100’s of pounds!

When you take cash out of an ATM abroad there are four factors that can affect how much is debited from your UK a/c for a given amount of foreign cash in your wallet:

1. The exchange rate used on the day by Visa or MasterCard or which ever other credit exchange company is used by your card issuer.

2. The ‘exchange rate loading’ added to the above by your card issuer.

3. The ‘handling charge’ made for using the ATM machine.

4. If you are using a Credit card, the Interest charged – both how much and from when.

It is extremely hard to find out some of this information as many banks keep it hidden away in the small print and I have not come across one yet that shows a full breakdown of the charges they have made on your statement. The most illusive is the ‘exchange rate loading’. All banks charge it, but it is often hidden within the exchange rate quoted and not shown as a separate charge. This practice is unsatisfactory at best and downright dishonest at worst.

To give an example: Let us suppose that you and I queue up at the same ATM in France and that, within minutes of one another, we both take out 200 Euros in cash. Let us also suppose that we both use a Visa Debit Card, but from different banks. Will we both have the same amount deducted from our account? Almost certainly not. The exchange rate used by Visa will be the same for both of us and it will be the ‘commercial inter-bank rate’ for the day, not the much less favourable ‘tourist rate’ quoted in the Newspapers. However, the ‘exchange rate loading’ applied by our respective banks could be very different. Most of the ‘High Street’ banks apply a loading of around 2.7% whereas more competitive banks can charge as little as 1.25%. On top of this will come the ‘ATM handling charge’, which is fairly typically 1.5% with a minimum of £1.50 but can be as much as 2%. Thus, the total charge could be as little as 2.75% or as much as 4.7%. On a typical two-week holiday this may not matter, but for those of us living abroad for much of the year it is very significant.

If we were using Credit Cards we would also have to worry about interest. Some issuers charge interest from the day you take the cash out, others from the date of your next statement. Some charge interest whether or not you pay your account in full, others only if you don’t. The best advice here is never, never take cash out with a credit card – it is much too expensive.

So what do I do? Having spent many hours researching the issue I have opened an account with the Internet Bank ‘Cahoot’. They pay one of the highest interest rates available on current account balances, charge an exchange rate loading of only 1.25% and an ATM fee of 1.5%. Their card is a Visa Debit card that makes keeping track of expenditure whilst abroad very simple – everything is done through one account. Their Internet access is also fairly fast and easy to use. I also have a Credit Card to make purchases at, for example, the London Boat Show as purchasing on a credit card gives some protection if there is a problem with delivery – debit cards give none.

I hope this helps,

David

 

[cynthia]

Citibank

We have dealt with them in the past - seem to meet all the criteria - very efficient too. If you need a building to visit rather than just internet, they have branches in several European countries e.g. Barcelona.

 

[Robin2]

Why not ask that nice Mr Blair to get UK to join the Euro

 

[ToMo]

Yeah that ud be really good, then we can all kiss good bye to a pension!

 

[david_e]

Thanks.

 

[Guest]

Could always get intouch with one of my fathers company.

He does offshore companys and euro bank accounts. For full details go to www.avoidpayingtax.com.

Sorry sites a bit of a mess but havent had a chance to tidy it up recently.



Tim Eades
http://www.btinternet.com/~tim.eades/

 

[Chris_Robb]

Re: Not in euro yet!

You will always be charged and exchange commission from Sterling to Euros as we are not in the euro. British banks offer a euro account, but will require you to keep some £5000 in it as a minimum balance.

Overseas banks will offer this - but you have still got the problem of transfering money from one account to the other.

 

[oldgit]

Are we talking Enron or robert Maxwell here.?

 

[Guest]

Liverpool victoria do a credit Card which gives bank rate for euro transactions and does not charge ffor european use other than 1.5% cash withdrawal.