Euro Bank account
 

I have a creative friend (US citizen and US domicile) who is happily going to receive royalties in euros in another month.

Since she travels regularly to Europe, it makes no sense to convert these royalties to USD, then back to euros.

Have any of you had experience with a bank that will open a legitimate euro account for a US citizen, preferably without her actually being in Europe?

We once had a sterling account, but we opened it while we were in the UK. It was a minor hassle at tax time (two additional forms to fill out) but was a convenience. A Canadian friend had a USD account at Bank of Montreal, so I know the idea is not unusual, but I could use some specifics on a euro account.

Are you really sure her own bank doesn't offer a euro account? Or that her nearest branch of Citibank or HSBC doesn't? In my tiny rural backwater, every bank offers accounts in dollars, euros or most other heavily-traded currencies.

HSBC most certainly will. All British mainstream banks operate services for non-residents allowing them to open an account in any major currency, often technically accounts in Jersey, Guernsey or the Isle of Man with significant tax advantages. Google "offshore" with Barclays, Lloyds or HSBC.

Do realise, though, that there are often heavy charges for this, which might outweigh the notional exchange savings. It's also possible non-residents, and holders of offshore accounts, may not qualify for deposit protection schemes in the event of banks failing, or being bailed out.

Whatever you do, find a euro account with ATM card facility. Some only deal in electronic transfers and checks. Also remember that even though you are withdrawing euro from a euro account, unless your account is in a euro country (not easily arranged for non-residents, non-EU citizens), you will be hit with ATM charges.
There are plenty of such accounts, usually with a tax-haven subsidiary of major banks, but watch out for minimum balance (often 5000 euro or more) plus account charges. They are intended for international executives and people with substantial assets in euro countries, like second homes or businesses.
So your friend, unless she will have substantial, regular payments in euro, may find the charges overweigh the advantage of avoiding currency exchange.

"unless your account is in a euro country (not easily arranged for non-residents, non-EU citizens), you will be hit with ATM charges"

Not necessarily - I don't know about the US, but in the UK accounts with free foreign ATM withdrawals are widely available.

Thanks for the HSBC offshore suggestion, FlannerUK. The HSBCUS website doesn't even mention it.

I had figured that it might be a Jersey or Isle of Man account in reality.

Charges aren't high, but you have to keep a whacking great balance.

Yes I know that. I have Nationwide Flex account. But I live in UK.
What I was saying was that for a US citizen and resident, it's very difficult (if not 100% impossible) to open an account in a euro zone bank. Thus they have to open one with a US or UK subsidiary in the Channel Islands or Isle of Man, and even if it's a euro account, it doesn't mean free cash withdrawal in a euro country. Nationwide, the only UK financial institution to offer completely free overseas cash withdrawals, don't offer equivalent account in euro offshore.

And US banks don't do foreign currency accounts ???

And there are other UK banks which do accounts with free overseas cash withdrawals - I have one myself.

But they - except Nationwide - still load exchange rate by 2.75 - 3%, but you can't see it as it's hidden in the conversion rates used. Free overseas withdrawals just means you don't pay a % charge (usually 2-3%) when you use an ATM within the same global alliance (such as Deutsche Bank or BNP Paribas for Barclays).
http://www.personal.barclays.co.uk/B...p;target=_self

Well yes - but in all retail cross-currency banking transactions, the exchange rate is going to be at least 2% above the official interbank exchange rate.

Still wondering why the OP's friend can't get a euro account with a US bank - don't US banks do foreign currency accounts ?

From the OP to Caroline_edinburgh:

I have not found a US bank that would do a foreign currency account for an individuals. Thus we had our sterling account at Bank of Scotland in Edinburgh.

This is truly bizarre because Royal Bank of Scotland _owns_ one of our larger regional banks, Citizens, and even they don't offer offshore accounts.

I have had an account at ABN-AMRO in Holland for decades. I use it when I travel in Europe. Usually I keep just a hundred euro in it but then transfer a bundle of cash at the beginning of a trip at a cost of $35. I have a chip ATM card. ATM fees throughout Europe are negligible. There is no foreign transaction charge when using it to buy things. Check it out.

Spaarne - did you open that account whilst living in the Netherlands?

Nowadays I think it would be quite difficult for a non-dom to open a bank account here.
Since ABN-AMRO is one of the banks especialy hard hit by the current crisis, being stuck in limbo after the takeover by Fortis got stuck when Fortis collapsed, I'm not sure I would advise anyone to open an account with them.

Hi Ackislander. Oh right - surprised to hear that.

<i>And US banks don't do foreign currency accounts ???</i>

Why would they? It simply isn't something that the average US resident would ever have any compelling need for.

If you really need it (business with Euro customers or suppliers, or wealthy) then I'm sure you will find it. If you are just an Average Joe off the street, I don't think this is something you are going to find. And even if you do, unless you have a lot of assets in Europe, or routine and sizeable payments, then I fail to see the need for a foreign currency account.

<i>This is truly bizarre because Royal Bank of Scotland _owns_ one of our larger regional banks, Citizens, and even they don't offer offshore accounts.</i>

It isn't bizarre at all. Retail banking is regulated at the national level and those regulations will impact your choices much, much more than the nationality of the parent company.

Well it still seems odd to me. Banks here offer foreign currency accounts so I assumed it would be the same in any developed country. Not everyone has the need for a lot of the products routinely offered by banks.

Actually a quick google seems to turn up various banks offering foreign currency accounts in the US.

Which banks? And under what terms? I don't doubt that one can get a foreign currency account. The question is the terms.

&lt;&lt;What I was saying was that for a US citizen and resident, it's very difficult (if not 100% impossible) to open an account in a euro zone bank.&gt;&gt;

Rubbish.

I've had an account in a French bank for 18 years. I could have opened it in five minutes at any bank in France. All you need is some money to deposit. Yes, I had property there, but that was completely irrelevant to the opening of an account.

I don't pay any fees other than those that any other checking account holder at my bank does. I have a French ATM card that does not incur withdrawal fees.

What I do pay (and any French national would, too) is a fee for depositing funds - whether it is a draft or a wire transfer from my US bank or a deposit of a check or draft already in euros. I thin it's about 18 euro per transaction. But that's not some fee I pay for not being a French citizen - everyone with a bank account pays that.

Your friend will have no problem opening a bank account in France. I can't speak to other European countries, but I'm guessing it's the same there.

Would it be possible for the OPs friend to open a euro account in one of the many European banks that have branches in the US?

StCirg

A non-resident account (compte non-r&eacute;sident) can be opened, but it's quite restrictive compared to a resident account (compte r&eacute;sident). After completinmg the application form (mandate), you need to provide several pieces of identity and banking reference and a utility bill etc (for resident account).