Every time you move money from the UK to any European country, you could be losing money. Opening a euro account could be the solution.
Maybe you live in the UK but travel to Spain a lot. Or you’ve got a daughter studying in Berlin who needs books and food. Or you’re starting a new business in Brussels. Or you’re an online seller using international marketplaces around Europe.
The bottom line is that you make or receive payments in euros so much, you might as well have a euro bank account. The major benefit of opening a euro account in UK is that you save a lot of money in exchange rate fluctuations and international transfer fees on GBP to EUR transfers. It would probably make your life a lot easier, and it would definitely help you save money.
In this guide, learn how can you open a euro bank account in the UK. Plus, alternatives such as the Wise multi-currency account could be a better fit for your needs.
Opening a Euro Bank Account in UK?
Open a Euro bank account with Wise Multi-Currency Account – at ZERO monthly fees (even as a non UK resident).
You can hold up to 50+ different currencies, all in one account. You also get a local Euro bank details in your own name, IBAN account number – And a linked Visa debit card!
Index
Can I Open a Euro Bank Account in the UK?
You can open a EURO account in the UK with either a traditional bank or using an alternative digital solution such as Wise.
Many high street banks now offer euro accounts to their customers. There are also “challenger” options from both newer banks and technology-focused finance and foreign exchange companies.
If you are looking for an account from a traditional bank, the best bet may be to go with your current bank, since many banks will only offer these accounts to existing customers. In addition, it’s worth knowing that some banks may insist on a minimum income threshold or a minimum amount held before you can open a euro account.
But nowadays, banks aren’t your only option. There are several new “fintech” (financial technology) companies that offer cheap, easy and fast ways to send and receive euros, and you can even open these types of accounts online.
The Best Euro Account for UK Residents in 2023
Make sure you understand the fees on the account that you are opening. These may include set monthly fees or fees for transfers and for receiving money. Some accounts may require you to carry out a certain level of transactions every year. Certain currency accounts may also allow you to hold several currencies, while others allow only one.
If you are opening a euro bank account in the UK, it is important to look at all the options available in the UK and check all the fee structures. Traditional banks generally have a high fee for international money transfers and on top of that offer very poor exchange rates.
Here is the overview of the best euro accounts for UK residents:
| Account | Monthly fee | Features |
|---|---|---|
| Wise multi-currency account | Free personal account One-time fee of 16 GBP for a business account | 50+ currencies Send money to 80+ currencies Local EUR account details |
| Barclays Euro Account | Fee: £0 Int’l transfer cost: 4% – 10% Card payment cost: 2.99% | Personal accounts can hold 12 currencies (including EUR) Hold 20+ currencies for business accounts |
| HSBC Currency Account | Fee: £0 Int’l transfer cost: 1.5% – 8% Int’l card payment cost: 2.75% | Personal accounts can hold 14 currencies (including EUR) |
| Lloyds | 8 EUR/month | Personal and Business accounts in EUR, GBP, and USD |
| Santander Gold Account | None €30 for Int’l SWIFT payments | Accounts available in euros and pounds |
Wise (Formerly TransferWise)
Wise (Formerly TransferWise) offers personal and business accounts and comes with bank account details for 10 different currencies, including EUR.
Wise Multi-Currency Account lets you hold up to 50+ different currencies, all in one account. When you convert one currency to another. It also gives you local bank details, even for your Euro account. That means that when people pay you, or you pay them, it will be as easy as a local transaction for both of you with local euro account details
You can instantly start using your account using a virtual card or order a physical Wise Card. The card can be used to make payments in 50+ currencies and ATM withdrawals at a very low, transparent fee.
- Fee: No monthly fee for Wise personal account, £16 one-time-fee to open a business account
- Currency Exchange: Hold and convert 54 currencies with the mid-market exchange rate
- International Money Transfers: Send to 80+ countries, receive payments from 30 countries
Barclays
The Barclays Euro Account is available for both personal and business customers that let you hold, send and receive payments in euros. Barclays lets you open personal accounts and can hold 12 currencies and 20+ currencies for business accounts, but you would have to open a new account for each currency you want to hold, send or receive.
In order to open a euro account in Barclays bank, you’ll need to open a Barclays current account in sterling first. And there is no unified multi-currency account with a unified debit card, therefore you may have to open and maintain separate accounts with separate debit cards
- Fee: £0
- International transfer cost: 4% – 10% (depending on the currency)
- International card payment cost: 2.99%
- Proof of UK residence required: Yes
HSBC
HSBC is UK’s largest bank by market value, which offers an international Currency Account that allows you to open and manage 14 major currencies, including the euro, for both personal and business customers. There are 4 different types of foreign currency business accounts available with HSBC.
There is no regular fee to open a personal euro account. However, to be eligible to open an account, you must be over 18 years of age and have an HSBC current account, but you can open a euro bank account online via HSBC internet banking.
- Fee: £0
- International transfer cost: 1.5% – 8% (depending on the currency)
- International card payment cost: 2.75%
- Proof of UK residence required: Yes
Lloyds Bank
The Lloyds Bank International Current Account comes with a monthly fee of 7.50 GBP or 8 EUR which gives you a choice of three currencies, EUR, GBP and USD. In order to be eligible for the Lloyds international account, you must have a gross income of a minimum of £50,000 (or the equivalent in euros).
You also have to make a deposit within 30 days of opening an account. If you have a GBP account, there is no additional monthly fee to open a USD or EUR account. You will also get a Visa debit card for spending in euros.
- Monthly fee: 7.50 GBP or 8 EUR
- International transfer cost: 3.5% – 8% (depending on the currency)
- International card payment cost: 2.99%
- Proof of UK residence required: Yes
Santander
Santander offers Gold Account that is primarily made for people who travel or work abroad, and regularly have to make international payments.
Santander Gold account is a personal account available in GBP, USD, and EUR that comes with a debit card that allows you to make payments and withdraw cash from ATMs (even in euros).
How to Open a Euro Account in the UK?
Steps to open a euro account for UK residents:
- Choose the best euro account for UK resident
- Check if you are eligible to create an account with the provider/bank
- Register to open a EUR account online, local branch, or digital provider app
- Give your personal information and ID to complete the verification process
- Add some funds to your EUR account – and your account is ready to go!
Remember, UK law asks banks and other similar financial services companies to collect personal information when opening personal or business bank accounts in the UK. This allows the banks to protect their customers and business clients from fraudulent activities.
Therefore, here are some additional documents required to open a euro account for a UK resident. It may vary depending on the bank or the provider and the type of account you want to open, but it includes
- A photo ID issued by the UK government to prove your identity
- Proof of address – for example, rent contract, utility bills, etc
- Business registration (for opening a business account)
Why Do I Need to Open a Bank Account in Euros?
A euro account does exactly what you would expect it to do. It allows you to bank in euros – to both transfer and receive money.
Opening a bank account in euros is useful because if you have income in multiple currencies, or often transfer money to friends or family abroad, you often end up losing value on the transfers.
Increasing numbers of providers now offer euro accounts, so getting started with them may be easier and cheaper than you think.
Benefits of Opening a EURO Account in the UK:
- Fee-free transfers to family and friends in the Eurozone
- No currency fluctuation
- Easier cross-border transactions
- Secure money transfers
- Separate local bank account numbers for the UK, US, and Europe (with the Wise Multi-currency Account)
- The ability to hold many different currencies in one account (in some cases)
- Helpful to people with international investment portfolios
Things to Remember When Opening a Euro Account in UK
Accounts with banks will give you the standard £85,000 per person, per institution protection if the bank goes bankrupt – but remember this will also include any other money you hold with the bank, so if you have large balances in several currencies you may need to spread this around different institutions.
If you hold an account with a non-banking institution, your money may not be covered under the Financial Services Compensation Scheme (FSCS). At a minimum, make sure you understand what compensation you would be entitled to and whether your cash is ring-fenced in a separate account from the money used for the day-to-day running of the business.
It’s also important to check the exchange rates you’re getting from your euro account. Some banks may artificially worsen this rate, adding a markup to their exchange rate while advertising low fees, so you aren’t sure what you are getting. Transferwise always offers the Reuters mid-market rate (the midpoint between demand and supply for a currency) with a small charge on top. They let you know exactly how much you’ll get before you start the transaction.
Opening a Euro Account in UK FAQs
Can I Open a Bank Account in Euros in UK?
It is definitely possible to open a bank account in euros. There are two ways you can do it, high-street banks or specialised online providers. Some euro account lets you hold and mange euro, while the multi currency account allows you to hold 50+ currencies with local bank details on major currencies.
How much does it cost to open a EUR account?
There are a broad range of options and cost involved to open a euro account for UK residents. Most banks offer a free account, but have high international fees and poor exchange rates. Some banks offer monthly fee to open and manage euro account. As an alternative, Wise multi-currency accounts let you hold and manage EUR with local bank details.
Sources used for this article:
- Barclays – Euro account
- HSBC – currency account
- Lloyds Bank – international current account
- Santander International – current account
- Barclays – euro account
- HSBC – fee information document
