A foreign currency account can be a great tool for optimizing your finances, but it's not worth it for everyone. Let's see when it's useful!
What is a Foreign Currency Account?
A foreign currency account is a bank account where you can keep your money in foreign currency (EUR, USD, GBP, etc.).
When is it Worth Opening a Foreign Currency Account?
- Regular foreign income: If you get paid in euros or dollars
- Frequent foreign purchases: Online shopping from foreign webshops
- Travel: For foreign holidays, business trips
- Investment: For investments denominated in foreign currency
Advantages
- Avoid multiple currency conversions
- Convert at more favorable rates
- Protection against exchange rate fluctuations
Disadvantages
- Account management fee
- Exchange rate risk