Funds Insider - Opening the door to funds

Welcome to the Citywire Funds Insider Forums, where members share investment ideas and discuss everything to do with their money.

You'll need to log in or set up an account to start new discussions or reply to existing ones. See you inside!

Notification

Icon
Error
Forex - Euros to £Stg - 7 figures
+ Reply to discussion
Options
William P
Posted: 12 February 2023 20:41:32(UTC)
#1

Joined: 18/09/2018(UTC)
Posts: 295
Hello All

I have a seven figure sum of Euros in a business bank account.

The bank is now offering me 4% for 1 year fixed term £Stg deposit, but only 0.5% for Euros irrespective of duration.

So I think I should consider converting the Euros to £Stg to avail of the higher interest rate, but also the Euros to £Stg exchange rate, relative to the past few years, is reasonably favourable at the moment at £/€1.13 (it was £/€1.11 at 03/02/23)

I would not be convinced that my bank would offer me the optimum exchange rate / transaction fees.

Does anyone know where the best deal would be on this value of exchange?

Many thanks.
Back to top Quote
MarkSp
Posted: 13 February 2023 06:42:38(UTC)
#2

Joined: 02/02/2020(UTC)
Posts: 2,199

Thanks: 285 times
Was thanked: 5843 time(s) in 1734 post(s)
William P;257393 wrote:
Hello All

I have a seven figure sum of Euros in a business bank account.

The bank is now offering me 4% for 1 year fixed term £Stg deposit, but only 0.5% for Euros irrespective of duration.

So I think I should consider converting the Euros to £Stg to avail of the higher interest rate, but also the Euros to £Stg exchange rate, relative to the past few years, is reasonably favourable at the moment at £/€1.13 (it was £/€1.11 at 03/02/23)

I would not be convinced that my bank would offer me the optimum exchange rate / transaction fees.

Does anyone know where the best deal would be on this value of exchange?

Many thanks.


There are lots of places that will do big conversions but I wouldn't give up on your bank (unless it is LLoyds :( ).

I would ask them for their best offer and it will go to the forex desk - that will show you what they could achieve. Barclays as an example..... smaller transactions are done by Barclays Bank Limited. Larger TRX by Barclays International - two very different orgs with different fee structures.

Compare what they offer you with revolut they have cracking rates and it will give you a feel for what is in the market
Back to top Quote
2 users thanked MarkSp for this post.
William P on 13/02/2023(UTC), You have to change your life on 13/02/2023(UTC)
Thrugelmir
Posted: 13 February 2023 17:31:26(UTC)
#3

Joined: 01/06/2012(UTC)
Posts: 5,333

Thanks: 3258 times
Was thanked: 7899 time(s) in 3272 post(s)
Dithering seems to have more downsides.

Loss of interest everyday

Interest rate offered on GDP fixed term falls

Exchange rate moves against you.Personally I'd say the £ is at the lower end of the scale currently.

Back to top Quote
1 user thanked Thrugelmir for this post.
William P on 14/02/2023(UTC)
Homarus
Posted: 18 February 2023 17:22:15(UTC)
#4

Joined: 31/03/2020(UTC)
Posts: 10

Thanks: 15 times
Was thanked: 10 time(s) in 5 post(s)
William P;257393 wrote:
Hello All

I have a seven figure sum of Euros in a business bank account.

The bank is now offering me 4% for 1 year fixed term £Stg deposit, but only 0.5% for Euros irrespective of duration.

So I think I should consider converting the Euros to £Stg to avail of the higher interest rate, but also the Euros to £Stg exchange rate, relative to the past few years, is reasonably favourable at the moment at £/€1.13 (it was £/€1.11 at 03/02/23)

I would not be convinced that my bank would offer me the optimum exchange rate / transaction fees.

Does anyone know where the best deal would be on this value of exchange?

Many thanks.


You would be hard pressed to find a tighter spread than on Revolut, and you also have transparency and control on the timing of your forex trade. Just be aware that they widen their spreads when markets are closed, so don't trade at the weekend !

If you are a higher rate tax paper and these funds don't sit in a tax wrapper you would be much better off buying the current low coupon 1 year gilt yield at around 3.9 %. rather than a bank deposit of 4%. Most of the proceeds would be from the (tax free) capital gain.
Back to top Quote
1 user thanked Homarus for this post.
ANDREW FOSTER on 18/02/2023(UTC)
+ Reply to discussion

Markets

Other markets