A multi-currency account suits you when you pay, withdraw cash or receive payments in more than one currency and want fewer surprises on each. The choice comes down to a handful of checks. They cover card conversion, cash withdrawals, balances held in several currencies, and how fast a card can be frozen. Start with the payments you make most often, then compare providers on those points only.
Card spending abroad
Card spending is often the largest part of spending abroad, so this check carries the most weight for many travellers. Look at how a purchase in a foreign currency is converted. Some providers add a mark-up to the exchange rate, while others pass on a rate closer to the market rate. Learn how an FX mark-up works before you compare.
In a provider's own terms, look for the conversion method, the source of the rate, and whether anything extra applies to card use abroad beyond the conversion itself. When a card machine offers to bill you in your home currency, paying in the foreign currency instead usually lets your own provider convert, which tends to give the better rate.
Cash withdrawals abroad
Cash still matters in places where cards are refused or where small shops prefer notes. Withdrawal terms often differ from card spending terms, so they need their own check. Look at which machines count as part of the provider's network and whether frequent withdrawals are treated differently from occasional ones.
Read the cash withdrawal terms closely, including how a withdrawal in a foreign currency is converted and whether the provider adds anything on top. A provider's own terms should set out the network and the steps for withdrawing. As with card payments, if the machine offers to convert the withdrawal into your home currency, letting your own provider convert instead usually gives the better rate.
Holding balances in several currencies
Some accounts let you hold a balance in each of several currencies, so you can pay in the currency you were paid in. Others convert everything into a single base currency, which is simpler but gives less control.
Check which currencies the account holds and whether you can open local account details for them. Local details, such as an IBAN in countries that use that format, let people there pay you through the domestic transfer network. Confirm which local transfer networks the account accepts for each currency, since a local transfer is usually faster and simpler than an international one.
Some providers are not banks but e-money institutions, so balances may be protected differently. Check whether each currency balance falls under deposit protection and how that protection works for the provider's type.
Freezing and controlling a card
If a card is lost or used without your permission, speed matters. Look for a freeze option you can switch on and off from the account area, and check how quickly it takes effect. Also look at whether you can turn off overseas, online or contactless use on their own.
Check what happens to payments that are already pending when a card is frozen. A provider's own terms should explain the freeze and unfreeze steps, the types of use you can switch separately and how to report a card as lost.
Converting at a fair rate
A fair rate is generally close to the mid-market rate, the middle price between buying and selling a currency in wholesale markets. Many providers advertise a headline exchange rate that differs from the rate actually applied, so compare the two. Check whether the provider says where its rate comes from and whether it displays the final converted total before you confirm.
Look for these details in the conversion section of a provider's own terms, and compare them with the mid-market rate published by a reliable source on the same day.
Who should pick what
Match the account to the way you actually spend abroad.
- Frequent travellers who mostly pay by card should weigh conversion terms and card controls first.
- People who withdraw cash often in several countries should focus on cash withdrawal terms and the machine network.
- Freelancers and people paid in several currencies should check local account details and balance options before anything else.
- Couples sharing spending abroad should check whether a joint account offers separate cards for each holder.
Shortlist options through multi-currency account comparisons.
Common questions
- Can a multi-currency account replace a main account? It can, if it covers your regular bills and income, but confirm that it handles the direct debits and standing orders you depend on.
- Does holding several currencies add risk? Balances in other currencies move with exchange rates, so their worth in your home currency can rise or fall. Check the provider's own terms on protection before relying on it.
- Should travellers keep a second account? Some people keep a card-focused account alongside a separate account for local payments. Compare each against the checks in this guide.