What is a multi-currency account and what is it for?
19/06/2025
Do you work abroad, sell products in multiple currencies, or simply travel frequently? In these cases, a multi-currency account can be a useful tool to manage your money without losing so much in currency exchange fees. It is not a complex product, but also not suitable for a regular consumer.
A multi-currency account is a bank account that allows you to hold balances in different currencies (e.g. Euros, Dollars, Pounds, Yen...). Unlike a traditional checking account, it does not automatically convert money to euros, but keeps each currency separately in different sub-accounts or compartments. You decide when to make the conversion taking advantage of the market situation or according to your personal circumstances.
Among its advantages, it is worth highlighting:
- Savings in exchange fees: If you receive income or make payments in other currencies, you can avoid converting each time to euros and their commissions for it.
- Flexibility to operate internationally: You can pay or collect in the currency that suits you best.
- Exchange rate control: You can decide when to convert your funds, taking advantage of a more favorable exchange rate.
It also has its drawbacks:
- Foreign exchange risk: If you hold money in a currency that depreciates against the euro, you can lose value by converting it.
- Low offer: Banks traditionally offer accounts in specific currencies (such as dollars or pounds), but not a single multi-currency account for individuals.
- Fees and conditions: looks closely at whether maintenance, conversion or transfer fees apply.
- Taxation must be taken into account: if you buy or sell foreign currency, the capital gain or loss obtained must be declared.
Before hiring a multi-currency account, compare conditions between entities, ask for commissions and the exchange rate they apply and make sure you understand how the management of each currency within the account works.
“Disclaimer: Please note that this is a translation of the original in Spanish that has been obtained using eTranslation (the machine translation tool provided by the European Commission), with the intention of giving you a basic idea of the content in English until a human translation becomes available. The Banco de España accepts no liability whatsoever in connection with this translation.”
