In this article we are not going to tell you how to avoid currency rates altogether nor are we going to advise you to buy months in advance. This article is going to reveal how you can save hundreds to thousands a year with the online, borderless bank, Transferwise for any foreign currency purchases you make, be them for business or for pleasure.
Since 2011, people all over the world have been saving hundreds and thousands of pounds on foreign, currency, exchange rates using the multi currency account from Transferwise.
Transferwise is a London based, online bank that trades in over 700 different currencies, giving anyone from the general public, simple, online, multi currency account. This is pure gold dust for anyone that works online today because this one online bank currently smashes ALL the the currency exchange rates of other high street banks. What’s really interesting about this bank is that you don’t have to be a British resident, living in London to open one of these accounts. People from all around the world are profiting from the extremely low, foreign currency exchange rates that Transferwise gives with it’s multi currency account.
What is a multi-currency account?
A multi currency account is a bank account that lets you keep your money in different currencies within the same account. Why Transferwise is just such a great bank for freelancers or online business owners is that you actually save money by having a multi currency account instead of it costing you an arm and a leg each time you want to exchange currencies. Here is an example of what one small freelancer saved in 2020 alone.
How much does it cost?
Unlike high street banks that charge you a monthly subscription fee to use your own bank account which they gloriously adorn with high exchange rates, overdraft fees and the late payment fee if you miss a credit card payment; Transferwise do not charge you a monthly fee to use your account and unlike high street banks, they are hiding more hidden costs in the services that they offer you.
How does the Transferwise, multi currency account work?
In one word, simply! There is none of this booking an appointment to go into a high street bank where you have to queue and wait, buying months in advance. No planning on when the best times are to exchange.
You can do it all from your phone with the Transferwise app or via an iPad, laptop or other device connected to the internet.
You simply login to your Transferwise account and choose which currency you are paying in, and pay! Transactions are completed in seconds and there is not a single high street bank that can top the Transferwise rates. Look at the table below as an example.
Why is Transferwise able to offer much cheaper rates than high street banks?
Transferwise use the ‘real, mid market exchange rate’ but most high street banks do this then add their mark up to this, making the exchange rate higher than what it is. In fact, you can compare how much other high street banks add in this infograph below. As you can see, Transferwise are the leaders in offering the lowest rates and have been for a number of years.
How quick is it to open an account with Transferwise?
Opening an account with Transfwerwise is simple and quick. Opening an multi currency account with them can take up to 2 days as they need to validate your documents. But often it is quicker than that.
You can go straight to the Transferwise site here and open your account.