Standard Bank Foreign Currency Account: Complete Guide

If you need to manage your money in another currency, you might need a particular kind of bank account.

Foreign currency accounts are a popular choice among international freelancers, students, travellers and digital nomads. And of course, they’re used by people who have family or friends living in other countries.

In this guide, we’ll be taking a look at the Standard Bank foreign currency account, also known as the Optimum Bank Account. We’ll cover how it works and what features it offers, as well as fees, exchange rates, currencies and anything else you need to know.

We’ll also show you an alternative which could be a better fit for your needs. Open a Wise multi-currency account and you can hold money in 40+ currencies, as well as sending money worldwide for low fees and great exchange rates³.

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*Currently users in South Africa can only receive payments in ZAR. Support for other Wise products coming soon.

How does a foreign currency account work?

Standard Bank’s most accessible foreign currency account is called the Optimum Bank Account. It works in a similar way to an ordinary everyday bank account.

You select the currency you need, choosing from one of four major currencies. Once the account is open, you can manage your money through online and mobile banking. You can deposit your salary or savings, and make easy payments. The account offers unlimited deposits and withdrawals.¹

You can even opt in to get a Visa debit card, so you can spend the balance on the account.

Aside from the Optimum account, the bank also offers a couple of other foreign currency products, which may suit people in other circumstances.

For example, there’s the Platinum Optimum Bank Account for private banking clients (which is likely to have strict eligibility requirements). And there’s the Seafarer Bank Account which is designed exclusively for yacht crew who work all over the world and need to manage their money in different currencies.

Here’s an at-a-glance look at all the key features and facts of the Optimum Bank Account with Standard Bank:¹

USD account, Euro account, other currency account

You have four choices of currency with the Optimum account. One of the most popular choices is the Standard Bank USD account (also known as the Standard Bank dollar account).

But here’s the full list of available currencies:¹

• United States dollar (USD)
• British pound (GBP)
• Euro (EUR)
• Australian dollar (AUD).

It’s important to note that this is not a multi-currency account, so you can only open your account in one currency. If you need to manage your money in another, you need to open another account in a different currency.

Mid-market rates help you save with Wise’s multi currency account

Holding and sending foreign currencies in a single account can be tricky, expensive, and simply difficult to manage.

Wise is a money service business, which offers a multi-currency account, international money transfer services and a debit card, among other products⁶. Need to send money overseas? You can do it in just a few clicks with Wise, for low fees and the mid-market exchange rate³.

As a bank alternative, Wise makes it easy and cost effective, letting you hold, send and receive multiple currencies all in one place. You can manage your money in 40+ currencies at once, and convert between them whenever you need to.

You will find that it is also easy⁵ to open a Wise account(unlike with some banks) and you can do everything online.

Whether you’re a traveller, expat, freelancer or have family overseas, Wise could be your ideal solution! There’s even a handy Wise app, so you can track your transfers and manage your account on the move.

Join Wise!

*Currently users in South Africa can only receive payments in ZAR. Support for other Wise products coming soon.

How to open a Standard Bank foreign currency bank account?

To open a Standard Bank Optimum Bank Account, you’ll need to first check your eligibility. If you get the green light, you can start the process of applying for your account online.

Here’s the process, step-by-step:¹

1. Go to the Standard Bank website to read the details and terms and conditions of its Optimum account
2. Click the ‘Check Eligibility’ button and fill in a short online form.
3. A customer services representative will get in touch with you by phone or email within 72 hours. They’ll initiate the application process.
4. Complete the application form and submit your paperwork (we’ll cover what documents you need shortly). A Standard Bank representative will advise you on how to complete this process.
5. Fund your account with the minimum required deposit within 6 months of opening the account.

Standard Bank foreign currency account fees and charges

Like many bank accounts, the Standard Bank Optimum account does have some fees and charges.

The first you should know about is the quarterly maintenance fee. This is $90 USD (around 1,706 ZAR). However, you don’t have to pay it if you’re able to maintain the minimum account balance of $7,000 USD (around 132,718 ZAR) in your account. ²

Here are the other main fees on the account:²

When it comes to converting currency, Standard Bank uses its own exchange rates. You can see the latest rates here.

These rates are likely to include a mark-up on top of the mid-market exchange rate. The mid-market exchange rate is what banks use when trading currency with each other, and it’s believed to be one of the fairest rates you can get. By adding its own mark-up, the bank can make money from the transfer. But unfortunately, this makes it a little more expensive for you.

When you use Wise for international money transfers, you’ll always get the mid-market exchange rate with no margins or mark-ups³.

Debit/credit card features for foreign currencies

The Standard Bank Optimum account does offer a Visa debit card. It’s optional, and comes with a small annual fee.

The debit card lets you spend your currency balance, and you’ll use it in just the same way as a standard bank card. This includes withdrawing cash at an ATM, although there is a fee for this.

Standard Bank foreign currency account requirements

To apply for a Standard Bank foreign currency account, you’ll need to be at least 18 years old. You’ll also need to meet the following requirements:

• Be able to provide proof of address
• Be able to provide proof of identity
• Meet a minimum opening deposit of $7,000 (around 132,718 ZAR).

How to transfer funds to and from a Standard Bank foreign currency account

The Optimum Bank Account works just like an ordinary everyday transaction account. This means you can deposit, transfer and withdraw money as normal, using online or mobile banking.

You’ll also get unlimited deposits and withdrawals, with no fee for either service (although watch out for fees when you withdraw cash using your Visa debit card).

Interest on Standard Bank foreign currency account

The Standard Bank Optimum account doesn’t pay any interest on your balance. So if this is a feature you’re looking for, you might want to choose another provider or look into opening a savings account.

And that’s the Standard Bank Optimum account in a nutshell. We’ve covered everything from how the account works to how much it costs. So you should be all set to make a fully informed decision on whether this is the right account for your needs.

Just remember to compare all of the alternatives first. The Wise account could be a better fit for your needs. You can open it online, manage 40+ currencies at once and send money worldwide for low fees and great exchange rates³.

Join Wise!

Sources:

1. Standard Bank - International - Optimum Bank Account
2. Standard Bank - International - Charges for Banking Services
3. Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up to date pricing and fee information.
4. Transaction speed claimed depends on funds availability, approval by Wise’s proprietary verification system and systems availability of our partners’ banking system, and may not be available for all transactions.
5. Eligibility is subject to verification of customers identity. Wise may request additional documents to verify a customer's identity.
6. Please note that certain products or features may not be available in all regions. Please visit www.wise.com to check for availability and learn more about our offerings.

Sources last checked on date: 12-Sep-2023