If you manage overseas investments, conduct international business, or simply have family or friends abroad, a foreign currency account might be just what you need. These accounts are beneficial for frequent travelers and anyone who needs to handle finances across multiple countries.
What is a Foreign Currency Account?
Simply put, a bank account in a currency other than your local one. It can be held with a bank in your home country (onshore) or in another country (offshore).
Why Open a Foreign Currency Account?
There are various advantages to opening a foreign currency account, but the main benefit is often the convenience of avoiding constant currency conversions. By holding funds in your desired currency, you reduce exposure to fluctuating exchange rates, which can save both time and money. Many people choose a foreign currency deposit account for this reason — it allows them to keep their funds in a stable currency while avoiding the hassle of frequent conversions. And now, digital financial platforms offering foreign currency accounts or global accounts with similar benefits give you more options to choose from.
Choosing Between Digital Financial Platforms and Traditional Banks
When selecting where to open your foreign currency account, you have options: traditional banks or digital financial platforms.
- Brick-and-Mortar Banks: Many traditional banks offer foreign currency non-resident accounts but may have specific requirements. For instance, you might need to maintain an existing account with the bank for a certain period before you’re eligible to open a foreign currency deposit account. There might also be a required minimum deposit amount as well as monthly fees that vary according to the policies of the specific institution.
- Digital Platforms: Some digital services may offer multi-currency accounts. Plus, there’s always the Remitly Circle alternative, which allows you to store money in USD while your loved one, who shares the sub-account with you, decides when to convert it into local currency—helping protect the funds from devaluation. Contrary to some concerns, digital platforms can be as secure as traditional banks, provided they comply with regulatory standards. When considering a digital option, verify that the platform is properly licensed; this information should be readily available on their website.
Let’s walk through the steps of opening a foreign currency non-resident account alternative using a digital option like Remitly Circle.
How to Open a Remitly Circle Account: Step-by-Step
- If You’re Already a Remitly User: Simply download the Remitly Circle app from Google Play or the App Store. Log in with your existing Remitly credentials, and you’re set to go.
- For New Remitly Circle Users: All you’ll need to do is download the Remitly Circle app and set up a new account. It’s up to you whether or not to share the account or keep it personal.
Key Features of Remitly Circle
One standout feature of Remitly Circle is that it offers a worthy alternative that protects your money from currency fluctuations. You can open up to five accounts, each with a balance in USD, and choose to share any of them with loved ones or keep them for your personal use.
When you share an account, the person you invite has access to a USD balance within the same app. They’ll have the ability to withdraw money in their local currency at exclusive rates and without fees - transferring to banks, digital wallets, and cash pickup - all directly within Remitly Circle. This means they can access funds without needing additional details from you.
For added privacy, any shared account is limited in scope: the person you share with will only see the specific account they have access to, ensuring that your other accounts remain private. Moreover, Remitly Circle prioritizes security with features like two-factor authentication, real-time notifications, and secure storage of your money in a U.S. bank.
Ready to Open Your Foreign Currency Account?
Opening a foreign currency account can be a smart move for anyone managing or regularly sending finances across borders. Whether you go with a traditional bank or a digital platform alternative like Remitly Circle, the process is becoming more accessible and convenient than ever before. With benefits like reduced currency conversion costs and the flexibility to share accounts with loved ones, foreign currency accounts are well-suited for today’s global world. Take the time to choose the right provider for your needs, and enjoy the financial ease and peace of mind that comes with a well-managed, multi-currency foreign currency deposit account.