Here is What You Need yo Know About DBS’ Multi-currency Account and The Offer by Other Banks in Singapore
What are multi-currency accounts?
Just like the name suggests, a multicurrency account allows the account holder multiple currencies in one account. This ideal especially for investors who view foreign markets as their investment playground. DBS Singapore has a multicurrency account that allows customers to hold the Singapore Dollar and 12 other foreign currencies in a single account. This allows the account holder to easily spend their funds not only in the local market but also in foreign countries without the hassle of having to go through forex exchange.
The DBS Multicurrency account is linked to the client’s DBS Visa Debit Card allowing the bank customers to spend like locals in the countries whose currencies are supported. One of the other major benefits other than easier access to funds is the ability to spend their money without incurring foreign exchange fees.
Some of the benefits of multi-currency accounts
When customers have their Multicurrency accounts linked to their DBS Visa Debit Cards, they have access to direct withdrawal of foreign currencies at local ATMs. They can also transfer their foreign currencies with ease using their internet or mobile banking services. They can also engage in e-commerce with much more ease. Customers also have direct access to point-of-sale purchases in foreign currency. DBS Singapore also offers a variety of multicurrency accounts that are tailored to meet the needs of different customers. Here are some of the reasons why opening a multicurrency account is a good idea.
- One account to rule them all
Imagine a scenario where a trader or investor deals with property or goods from different countries and deals with multiple currencies. Opening multiple accounts to handle different currencies might turn out to be tedious. Instead, the investor or trader can choose the easier route by opening a multicurrency account.
- No conversion fees
Holders of multicurrency accounts are able to avoid extra charges when spending abroad, such as conversion fees and any other charges and this helps to save some cash.
- Account holders can take advantage of the best exchange rates
Multicurrency account holders are in a better position to take advantage of any exchange rate offers because of the instant access to their cash. There is no hassle of having to seek exchange rat services first.
- Exchanges may not always be reliable
Having a multicurrency might come in handy especially in instances where there is a sudden and massive change in the value of a cryptocurrency. In such instances, exchanges may be caught by surprise and find themselves not able to sell currency as a result of an exchange rate difference.
- Multicurrency accounts are ideal for expatriates
Foreigners in a country might choose to have a multicurrency account so that they can smoothly switch between the currencies when they are in their home country and when they are living in a foreign country.
The impact of interest rates on multicurrency accounts
Although one of the benefits of multicurrency accounts is not having to be charged exchange rate fees, it is worth noting that they are still affected when there are fluctuations in the exchange rates. A multicurrency account is also bound to be affected whenever any of the currencies held are subjected to exchange controls.
One example is when there is inflation and the cost of a property goes up in a country where a multicurrency account holder is buying a property. The higher price means the client will pay more for the property. In Singapore’s case, there has been slow economic growth following the decision by the U.S to impose tariffs. Such instances are usually characterized by price hikes and rates are affected and this trickles down to the buyer regardless of whether they are using multicurrency accounts.
You may be wondering whether multicurrency accounts are expensive based on the fact that they offer so much convenience. In the case of DBS Singapore, its offerings are rather affordable especially since they do not attract any monthly charge for its eMulti-Currency Autosave (eMCA) account. However, some of its other multicurrency account offerings have monthly payments of between $2 and $4 which is still very affordable.
Demerits of multicurrency accounts
Multicurrency accounts are subject to price movements and it is quite difficult to predict how the price of one currency will move in relation to another currency.
The banks offering multicurrency accounts might not necessarily offer the currencies that a client might be planning to put in their account. Additionally, not all banks offer multi-currency accounts.
Such accounts also require a bit more management since holders of multicurrency accounts have to make sure that balances are properly distributed for optimum returns while also managing the interest rate being offered by the bank.
Other banks that offer Multicurrency accounts available in Singapore
There are a few other banks other than DBS that offer multicurrency accounts in Singapore. Below are a few of the banks with multicurrency account offerings in the country.
Citibank is one of the biggest banks in the world with its presence in many countries including Singapore. Its multicurrency account service supports nine foreign currencies and customers get easy access through the Citibank Debit Mastercard which can be used at Citibank ATMs.
Its multicurrency account supports up to 11 foreign currencies. It also offers Online GetRate as one of its unique features which are designed to give users access to foreign exchange in real-time.
This is one of the local banks in Singapore which also offers multicurrency accounts. It offers access to nine global currencies.