How to open a Lloyds euro account

If you often send money between countries or convert it into different currencies, you could be losing a lot on transfer fees and marked-up exchange rates. Providers like Wise are one way to save money - Wise moves money at the exact mid-market exchange rate with no markups or hidden fees, just a small transfer fee that’s spelled out upfront. Another option for reducing currency costs is to open a euro account. Here’s what you need to know about opening a euro account at Lloyds Bank.

Need to manage money in multiple currencies or countries? Wise could help

Before you get started, a word.

Banks often charge hefty fees for foreign and multi-currency accounts. And if you’ve already tried managing multiple accounts in multiple countries, you know it’s rarely simple.

Wise could help. With Wise, it’s free to open a borderless multi-currency account with no monthly fees. There, you can manage and send dozens of different currencies all from the same account. All around the world. (Likely, for a lot cheaper than your bank.)

Give it a try. Check out Wise today.

Now, back to what you came here to read.

What is a Lloyds euro bank account?

A Lloyds euro account is one, of 3, international currency accounts offered by Lloyds Bank. These accounts are international bank accounts that offer special benefits like free international transfers for people who frequently send money overseas. Although they don’t charge you an upfront transfer fee when you send or receive money, Lloyds does state that there can be fees charged by correspondent or recipient banks¹.

Before you make a payment, though, it’s also a good idea to compare the exchange rate you’re being offered to the mid-market rate with an online currency converter, or by doing a quick Google search for your currency pair. You might find that the exchange rate you see on Google or the currency converter isn’t the same as the one that the bank offers you. This is because most banks, and payment providers, add a markup to the exchange rate, which is essentially a hidden fee they charge you.

Can I open Lloyds euro bank account in the UK?

In order to be eligible to open a Lloyds euro bank account in the UK, you need to have a gross annual income, this is the income you earn before tax, of at least £50,000 or the equivalent of that in one of the supported currencies.¹ For joint accounts, at least one applicant needs to have a sole gross annual income that meets that requirement. Alternatively, you need to have £25,000 (or the equivalent in another currency) to put into a savings or investment account with Lloyds Bank. You also need to make your first deposit into the account within 30 days of opening it.¹

Benefits of a UK Euro bank account: Who is it for?

If you frequently transfer money between different countries with different currencies or in the eurozone, a euro account may be for you. Holding money in a euro account can help protect it from currency fluctuations and exchange rate risk — it allows you to convert it to different currencies only when the exchange rate is right for you and it can help you save money on international transfers that way.

Another option is a Wise borderless euro account, which comes with a few additional benefits. Even though it isn’t a bank account, a Wise euro account gets you your own Euro bank account details, a European IBAN. You can also hold money in more than 40 global currencies other than euros, and - for a small fixed fee - you can make euro transfers to family and friends in the eurozone.

How much does it cost?

At Lloyds Bank, a euro account costs €8 per month.¹ Sending and receiving money internationally with a Lloyds euro account doesn’t cost any upfront fees, but that doesn’t mean they’re completely free. Lloyds does note online¹:

”We won't charge you for sending or receiving money transfers. However, correspondent and recipient bank charges may apply.”

You should also check the exchange rate that the bank will use. Compare it to the mid-market exchange rate, which is the only real rate, to make sure that you’re not losing out when you want to send or receive money in a currency other than euros.

A Wise euro borderless account, on the other hand, is free to set up and doesn’t cost any monthly fee. There’s also no cost for adding money to your account via a bank transfer - in any currency. There are no receiving fees when you get paid internationally in EUR, GBP, AUD or USD. Euro transfers to friends and family in the eurozone are free, and transfers to other parts of the world cost only a small, fair transfer fee depending on the destination country - with no hidden fees or exchange rate markups, because Wise only uses the mid-market exchange rate, guaranteed.

How to open a Lloyds euro account in the UK

To open a Lloyds Bank euro account, you can go to a branch or request assistance by phone.³ But it’s likely the easiest way to apply for an international current account at Lloyds Bank online. To do this, simply go to the international current account landing page and click on the “Apply Now” button.¹ Then follow the online steps.

Once your application is approved, you must make an initial deposit into the account within 30 days, or your account may be closed by Lloyds Bank.¹

Opening a Wise euro borderless account is also quick and easy. All you have to do is enter your personal information, verify your account via your mobile phone, choose your currency, and then have your account details verified by Wise.

For anyone who travels frequently between countries or does business across international borders, opening a euro account can be a cost-saving move. But is it better to go through a bank? Or to open an account with a money transfer service like Wise? Hopefully, this guide helped you weigh all the options and decide whether an international current account at Lloyds Bank is right for you — or if you might be better off going a different route.

Sources:
1.https://international.lloydsbank.com/products-and-services/current-accounts/international-account/ (May 16, 2018)
2.https://international.lloydsbank.com/products-and-services/money-transfers/ (May 16, 2018)
3.https://international.lloydsbank.com/contact-us/?WT.ac=header_Contacus (May 16 2018)

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