In today’s world multicurrency accounts are must-have tools for businesses that operate globally. If you operate only in domestic markets but you want to extend your business having a multi-currency bank account may help. These types of accounts facilitate international transactions so you can scale your business to international markets. In general if you want to manage a foreign currency, you need to open a foreign currency account just for that exact currency however this accounts generally comes with additional maintenance fees. Multicurrency accounts are also used for personal purposes, weather you live abroad or travel a lot you can benefit from multicurrency accounts.
Overall multicurrency accounts are benefit to your pocket. Let’s see what are multi-currency accounts, how a multicurrency account works and what are pros and cons of having a multicurrency account:
What is a multicurrency account?
It is a type of digital bank account that allows you or businesses to manage multiple currencies at the same time. Instead of dealing with currency conversion, you can keep all different currencies in one account without needing to convert. These accounts are ideal fo those who need to handle transactions without converting currencies all the time.
Multicurrency accounts enable to deposit money, withdraw cash with a linked debit card, send and receive payments in local currencies. It is also possible to receive interest on deposited money depending on the account.
Who can benefit from a multicurrency account?
Multicurrency Business Account
You can optimize your transaction costs by opening a multi-currency account if you have a global business. You can save the cost of exchange rates and fees as you don’t need to convert currencies frequently. Another advantage is that you can pay your business suppliers or vendors directly in their preferred local currency without spending extra money. This will not only ease your transactions but also help to build trust between you and your business associates.
Currency volatility is another important factor that creates some risks when it comes to international transactions. Operating through multicurrency accounts helps to deal with unexpected shifts in currency values. Another benefit for businesses that accept payments from different currencies is they can collect the payments in local currencies and keep them in their preferred currency without converting.
Multicurrency Accounts for Frequent Travellers or Expats
If you travel a lot then having a multicurrency account can be beneficial for you. Individuals who have multicurrency accounts can save money by avoiding currency conversation fees.
You can send and receive money to your family members or loved ones without dealing with additional currency exchange processes.
If you have a property abroad you can manage all transactions related to your property through a multicurrency account such as receiving rent from your tenant or paying related bills or taxes in local currency.
Or if your child studies abroad and you need to pay school fees and other costs, multicurrency accounts are very beneficial for avoiding currency exchange costs while you send money to your kid or pay their school fees and other relevant expenses.
Pros and Cons of Multicurrency Accounts
Advantages of having a multicurrency account
Multicurrency accounts can be equally beneficial to both businesses and individuals that frequently travel or live abroad.
Cost-effective: As you can save from exchange conversion rates and additional account management fees, multicurrency accounts optimize your budget. By using multicurrency accounts you don’t only avoid extra costs but also you can have transparency and predictability on the costs.
Flexibility: With multicurrency accounts, busineses that operates globally can make payments faster and in local currency to their associates.
Accessibility: It is easier to manage multiple assets for overseas transactions and operations with just single multicurrency account.
Less risks: Multicurrency account may be effective to avoid the fluctuation risks associated with currency values. Also assets can be moved more freely withou long waiting times.
More personalization: These accounts facilitates global investments without delays and additional fees. For those who live abroad multicurrency accounts enables to manage their funds in local currency like paying bills or other related responsibilities.
Multicurrency accounts are quite beneficial in multiple ways. However there are also some disadvantages that should be taken into account. Let’s break down what you need to know before opening a new multicurrency account.
Disadvantages of multicurrency accounts
Difficulty in management: If you are not familiar with this subject, tracking foreign exchange rates can be time consuming and complex. It is vital to be informed about financial responsibilities may arise from having multicurrency account such as different financial regulations or tax implications.
Fees and costs: Generally multicurrency accounts offer zero or very low exchange fees however there might be a maintenance or cahs withdrawal fee. Likewise interest rates are not the best in multicurrency accounts.
Restrictions: You may face with some limitations like transaction limits or maximum balance caps. In some cases there are also geographical restrictions due to integration problems of banking services. Some financial institutions only offer multicurrency accounts for residents of specific countries.
Integration problems: If your business use specific softwares for accounting services, they might not be compatible with your multicurrency account.
What is Jeton multicurrency accounts
If you are looking for secure and hustle free a multicurrency account, Jeton multicurrency account is available for you. Jeton is a global payment solution expert and offers the best digital multicurrency account for its customers.
Jeton offers broad range of currencies together with dedicated bank accounts. If your business operates in global markets then global payment solutions of Jeton is suitable for your business. Jeton provides digital currency-friendly banking solutions.
Jeton offers localised pricing adapted to different market conditions that will improve your customer experience to full satisfaction. Jeton multicurrency account facilitates global transactions with dynamic reporting and integration to various payment gateways such as SEPA Direct Debit in Europe. Jeton multicurrency accounts are also available for individual customers that travel frequently or need international transactions for personal purposes.
Applying for a Jeton multicurrency account is easy. Visit our website and click on Sign Up button. Once you complete all the necessary steps such as personal information including your name, date of birth, address and email address, photo ID, such as passport or driving licence and proof of address, recent utility bill or bank statement then you are ready.
Please visit our blog to find out more about how to open an account with Jeton.
