Non Sterling Business current/savings Account

[mongle]

Hi,

Just wanted opinions/views on the below..

In addition to the low interest rates on current and savings business accounts, there is also the additional currency risk of keeping all money in Sterling, especially with a possible taper in US QE soon. Has anyone considered non-sterling saving accounts and if so what currency? USD, CHF?

Also, do we need to open/switch current account in order to open a savings business account with a bank different from your current bank.

Thanks..

[northernladuk]

Erm.. Like in Iceland maybe?

[mongle]

Erm.. Like in Iceland maybe?

Sure! it was maybe an option five years back but hopefully we have learnt

was looking at something like this - Euro or US Dollar Premium Account

[jamesbrown]

What exactly is the currency risk though? Unless you do a lot of buying and selling in different jurisdictions, the main risk to the average contractor is going to be getting paid in a currency other than Sterling. Hedging against Sterling depreciation by opening a business account in a foreign currency is pretty silly IMHO and it also complicates your accounting. By all means, open one if you regularly receive invoices in a foreign currency. As an aside, there's no guarantee that the end of QE in the US will have the effect you suggest; this is largely priced in already and UK fundamentals have been looking dramatically better recently. Sterling has been pretty range-bound against EUR and USD for the last 5 years and will probably stay that way, broadly. How about an account denominated in Rupees?