Bankwest Foreign Currency Account: Fees and Rates

Anyone who frequently travels, has relatives abroad or does regular business overseas knows about the hassle it can be to convert money into different currencies on a regular basis. Plus, every time you exchange money into a different currency using a bank, you could be losing some of your hard-earned cash to marked up exchange rates. What if you didn’t have to? What if you could store and manage your money in foreign currencies, eliminating the need to regularly make exchanges? If this appeals to you, a foreign currency or multi-currency account may be for you. And if you’re a Bankwest customer, that might be an option for you. But there are also alternatives out there - like Wise- that can help you with the need to hold your money in different currencies, or make international payments.

Before we get started, a quick comparison between Bankwest’s foreign currency account and Wise’s Borderless multi-currency account

In order to learn all you need to know about the foreign currency account that Bankwest offers, please keep on reading.

What are the benefits of having a multi-currency account?

Multi-currency accounts can help you save money if you frequently have to do business or make transfers in currencies that are different from your home currency. With a multi-currency account, it’s possible to hold money in different currencies, avoiding the fees associated with exchanging it, and use it when it’s needed, in the currency it’s needed in.

Multi-currency accounts also make it possible to hold money in a stable currency, protecting it from any risk associated with exchange rate fluctuation. For this reason, many foreign currency account holders choose euro or dollar accounts, since those accounts allow them to hold their money in currencies that don’t tend to fluctuate to extremes. Customers can also hold their money in stable currencies until the exchange rates for their desired currencies are favorable, giving them more flexibility and ways to save on currency exchange.

A Bankwest foreign currency account² offers those benefits, as well as variable interest rates depending on the currency used in the account. Unfortunately Bankwest only offers foreign currency accounts to their business customers, and it’s not possible to open a foreign, or multi, currency account as a private customer¹.

What to do when you don’t have a business but would still like to be able to hold money in foreign currencies - perhaps you’re an expat living in Australia and you’re renting out your property in your home country - in this case Wisecan help you. With Wise you can not only make international payments, but they also have a borderless multi-currency account, where you can hold a balance in almost 40 different currencies. You can also get your own virtual - and local - account details in EUR, GBP, USD and AUD. This means that you can receive money in these 4 currencies via a local bank transfer. The borderless account is not only suitable for private customers, as a business customer you can also use it to save money on your international payments.

Which cards come with the Bankwest foreign currency account?

A Bankwest foreign currency account does not come with any cards associated with it. The minimum amount for a withdrawal from a foreign currency account is AUD $5,000 - or the equivalent in the currency in which the account operates - and it can only be transferred to a bank account or as a bank cheque³.

What types of foreign currency accounts does Bankwest offer?

Bankwest only offers a foreign currency account for business customers. The foreign currency account that Bankwest offers is an Australia-based deposit account for currencies other than Australian dollars. Bankwest foreign currency accounts do generate interest, with a variable rate that is based on the particular foreign currency the account holds. You can find the interest that is applicable to your account on the confirmation letter from Bankwest, although they do say in their Product Disclosure Statement: “The applicable interest rate is variable, set by Bankwest and is dependent on the market conditions relating to the foreign currency in which you conduct your account. The interest rate will, therefore, be subject to change without notice to you.”

Bankwest has foreign currency accounts available for most major global currencies, including³:

• US dollars
• Great Britain pounds
• Canadian dollars
• Danish kroner
• Euros
• Hong Kong dollars
• Japanese yen
• New Zealand dollars
• Norwegian kroner
• Singapore dollars
• Swiss Francs
• Other currencies will be considered based on the customer’s application

What are the fees for a multi currency account with Bankwest?

Unfortunately, very few bank accounts are without any fees, and Bankwest’s foreign currency account is no different. While there are no transaction or monthly service fees for having a foreign currency account through Bankwest, fees can still be incurred for some things, and according to Bankwest³, “Fees and charges are converted to the foreign currency of the FCA at a rate determined by Bankwest. They are charged to your FCA or another Bankwest branded bank account in the same currency.” That means the exchange rate applied to the fees you have to pay is likely to be marked up, costing you more money. But you can pay in Australian dollars and avoid that if you have another Bankwest account. According to Bankwest, “Alternatively, you may pay fees and charges separately in Australian dollars. These will be debited to an Australian dollar Bankwest-branded account in the same name as the FCA.”

Here’s what to expect when it comes to fees for using your Bankwest foreign currency account³.

How to apply for a Bankwest foreign currency account?

To apply for a Bankwest foreign currency account, you’ll need to visit any Bankwest branch in Australia. As a foreign currency account is only available for business customers, you will need to provide³:

• An Australian registered business name
• The address of your registered business office
• The full address of your principal place of business (if different from registered business address)
• The name of the legal entity the foreign currency account will be opened under
• Your Australian Business Number (ABN) and/or Australian Company Number (ACN)
• The names and residential addresses of all signatories on the account (if there are any)
• A copy of your business or company registration
• Details of all owners, directors and partners in the business
• Identification for all signatories for the foreign currency account

Your foreign currency account requires a minimum deposit of AU$20,000, and it can’t be deposited in foreign cash; it must come from an existing Bankwest account in the same name as the foreign currency account, a foreign currency draft or cheque, or a telegraphic transfer. If the initial deposit is made in Australian dollars, it will be converted into the foreign currency of the account “at a rate determined by Bankwest,” according to Bankwest’s website. That means if the initial deposit is made in Australian dollars, it will need to be more than AUD$20,000 to maintain the account’s minimum balance after the marked up exchange rate is applied.

Bankwest also offers options to open foreign currency accounts as joint accounts or trusts. Opening a joint account follows the same process outlined above. To open a foreign currency account held in trust, you will need³:

• The full name and business name (if any) of the trust
• The type of trust and the country where it was established
• The name of each trustee
• The name and address of each beneficiary
• The full name, address and date of birth of one trustee

How can I get in touch with Bankwest?

If you have any questions or concerns after reading this guide, Bankwest should be able to help. There are many different options for getting in touch with a Bankwest representative, so pick the one most convenient to you and a customer service representative should be able to answer whatever remaining questions you have⁴.

• Bankwest Help Desk and FAQ
• Bankwest phone for personal banking inquiries, available 8:00am – 8:00pm local time in your state, 7 days a week: 13 17 19
• Bankwest phone for business banking inquiries, available 6:00am – 6:00pm Perth time, Monday to Friday and 6:00am – 2:00pm Perth time Saturdays: 13 70 00
• Bankwest international phone, available 24 hours a day, 7 days a week: +61 8 9449 2840
• Bankwest Help Forum
• Bankwest branch locator
• Bankwest instant messaging available via online banking — sign in and click “Message us now.”
• You can send Bankwest a message via Facebook, Twitter or LinkedIn
• Bankwest email available via online banking — sign in and click “Message centre.”

Still not sure what’s the best foreign currency account for you? Or are you looking for a foreign currency account for personal use. Be sure to research all your options, and you’ll be able to make the right choice. Compare the available information about fees and exchange rates to the ones that Wiseoffers you, to make a well thought through decision.

Sources:

¹https://forum.bankwest.com.au/t5/Business-Banking/US-Dollar-Bank-account/m-p/6988#M171 (May 14, 2018)

²https://www.bankwest.com.au/business/international/foreign-currency-accounts (May 14, 2018)

³https://www.bankwest.com.au/library/pdf/pds_20040121-140735.pdf (May 14, 2018)

⁴https://www.bankwest.com.au/contact-us (May 14, 2018)

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