5 Reasons to Open a Multi-Currency Account Before the End of the Year
Now that it’s the holiday season, it’s the perfect time to go on that overseas vacation you’ve been waiting all year for. But of course, you wait till the last minute to get foreign currency from the money changers. Or you plan to charge all your spending to your credit card, but you forget about the extra conversion fees and overseas charges you must pay. Here’s how a multi-currency account can save you both time and money both before and during your overseas vacation.
1. Money changers aren’t always reliable
Remember how the value of the Malaysian ringgit dropped drastically in 2015? Money changers across the island were taken by surprise and many of them were unable to sell ringgit due to the sudden difference in exchange rate.
Imagine if you wanted to buy some ringgit then – you’d either have to exchange at a higher rate, or go home empty-handed and hope that you have spare currency lying around.
Yes, they’re rare occasions, but it’s a reminder that there are times money changers may not be able to sell you the currency you need, when you need them.
Or let’s say you’re on the way to catch a red-eye flight, and you want to change currencies before you leave the country. Trying to find a money changer that’s still operating after 9pm is going to be a challenge.
This isn’t the case for a Multi-Currency Account. You can convert from one currency to another simply and conveniently online.
2. No more missing out on the best exchange rate
Ever been alerted to a really good exchange rate but were too busy to head down to a money changer? By the time you finally clear your schedule, that exchange rate is a distant memory and all you have are regrets.
Or what about the time when you weren’t sure if it made sense to buy US dollars when the exchange rate was favourable? Why? Because you didn’t know when you were going to the US next and didn’t want to have cash in different currencies lying around.
With a Multi-Currency Account, you can take advantage of any changes in foreign exchange rates. The Account allows you to lock in an exchange rate at any particular time.
3. Avoid extra conversion fees and overseas charges
Despite the convenience of online shopping and the benefits that come with using your credit card for overseas transactions, we tend to forget that there are additional charges. Depending on the transaction, these extra fees and charges can add another 5% to the cost price. That’s a big deal when you’re spending hundreds of dollars overseas.
With a Multi-Currency Account, you can remit, withdraw and even receive foreign currency funds directly from the account with no foreign exchange conversion fees. If you have a debit card linked to the Multi-Currency Account, you can even spend directly from the account, again with no foreign exchange conversion fees. That’s going to save you a lot.
4. You don’t have to have multiple accounts for multiple currencies
In the past, you needed a separate account for US dollars, and separate accounts for Australian dollars, for Euros, or Thai baht or Hong Kong dollars. It was very inconvenient and you sometimes had to ensure there was a minimum balance in each account to avoid fall-below fees.
The alternative? Keep several stores of various paper currencies, left behind from multiple trips overseas.
With the Multi-Currency Account, you just need one account with one account number that handles up to 12 different currencies, including the Singapore dollar. You just need to worry about one total minimum account balance. With the DBS Multi-Currency Account, or MCA, you don’t even have a minimum account balance if you are below the age of 29.
5. You can earn money from it!
From now till the end of the year, they are also running a promotion where if you charge the equivalent of S$1,500 in foreign currency to your DBS Visa Debit Card, you stand to win S$50 cashback. That’s 3.33% in rebates.
You can link your DBS Visa Debit Card to any DBS or POSB account of course, but if you link it to the DBS MCA, then you have even more reason to spend in foreign currency, because you get to save on foreign exchange conversion fees.
This spending requirement applies to both online and overseas transactions, as long as it’s in a foreign currency.
Are you interested in opening the DBS Multi-Currency Account? Come on down to Orchard Cineleisure this weekend from 11am to 7pm and go on a VR Travel adventure with DBS’s MCA!
This article is brought to you in collaboration with DBS.