I'm thinking of opening a euro account at HSBC and moving my savings there, yeah I know the interest rate is 2% but I am convinced sterlings gona slide and devalue against the euro.

Am I mad, what's your opinion, is there an easier way to benefit from a devaluation.

Deano!

I do agree that the sterling is likely to devalue against the euro.
I think this is quite likely if the UK tries to align itself to the euro. It probably needs 10-15% (according to an analysis in the FT) drop.

An alternative way to profit, but with added risk, would be to invest in euro shares quoted on euro exchanges. I'm guessing here, but that could be something of a hedge: euro goes up, so exports become expensive for them, shares down; and vice versa. Gross simplification perhaps, but may worth doing some research on.

Unless you're planning to move to euro land, I wouldn't risk my savings in a foreign currency. Changing back & forth costs as well, and access to your saving in an emergency could cost you dearly because the FX rate may not be right when you need it.

Do any UK building societies have a Euro demoninated savings account(s)..

I checked with the main ones.. Abbey, Halifax.. no luck!

Any ideas?

The offshore outfits usually have Euro accounts.

Try citibank, fortis, HSBC

I've taken a look into this, and there's lots of small print like 'transactions attract our normal fees for foreign currency exchange' which turns me off the idea of using a cash Euro account.

Is there a way to get Euro exposure through the LSE? some kind of tradable fund that is a wrapper for something largly dependant on the value of the Euro? What about a Euro index trackers wrapper - do they exist?

Fingers.

I moved a shedload of sterling into a AngloIrish Isle of man Euro account, paying 2% when the euro hit what I deeded a low about 7 months back.
I used xe.com to wire funds into the account from one currecy to another.

To open an account you need a certified copy of passport, driving license etc.. which you can get someone to do from a high street bank for a small fee.

And yes - It was worth the hassle.

I asked abbey who have married Santander and was told it is coming, but no date!

There is a consensus that £ is overvalued somewhat against the Euro and will fall. The mid prediction I have heard is that the Euro will peak in 2006 at 76 cents to the £.

For what it's worth the same forecast looks for the $ to weaken to $2.10 to the pound again by 2006. Also the $ is expected to continue to weaken against the Euro.

BUT.... you can never tell what's going to happen. Esp as GW Bush spent about an hour yesterday telling us things like "Iran is the leading global state sponsoring terrorism"

You could buy the EuroTop100 iShare which would give you exposure to Euro denominated equities.

Hi Timmy,

Will Euro denominated equities necessarily increasing in value along with the Euro? If the Euro doubled in value over night, wouldn't some companies - e.g. those that relied on exports - be worth less? This fund sounds ideal if I can see a graph of it's value against Euro to convince myself it tracks within 10%

(Does EuroTop100 = ISHSEURO1ST 100 ISHARES FTSE EUROFIRST 100?)

Fingers

I eventually found Abbey International

But it seems that the charges are high.. I emailed to clarify a number of points (charges, branch network etc etc) the and will post their replies here if anyone is interested.

I rang them but spoke to a sales person who didnt seem very welll informed - to say the least.. e.g. she told me that the account has a sort-code/account number combination which could be used to transfer money BUT that this could not be used to pay in credits at a normal clearing bank (be that abbey national or otherwise) - she didnt know why that would be the case AND seemed to be confused between the facility to make payments (i.e. being part of the UK bank cleraing system) and the ability to use the Abbey branch network as if it were your own bank (which it is not! - as Abbey International is not the same as Abbey National). It could be that Abbey International is not directly connected to the UK clearing system and simply holds an account with another bank (as Abbey BSoc used to) and does not want to do the translation between external and internal bank account numbers - but she could neither confirm or deny this. In fact she didnt really understand it. In the end she offered to put me though to her Manager who would explain it to me.. I didnt have time and so emailed instead.

Questions follow,

1. What is the likely charge for deposits to the
Abbey Euro account (when accepted at normal Abbey
branches)?

2. It seems that there is no concept of a
passbook with the international savings accounts.
Is this correct?

3. What charges are there for transfers to and
from the account.

4. Do you have any branches in London?

5. It seems that your website assumes that an
account holder wanting your services is abroad.
Why is this? I expect to pay standard UK tax (at
the higher rate) on interest. Are there any
special rules wrt to this and your service? My
understand is that interest would be deducted at
the standard rate and I would have to add the
higher-rate differential to my tax returns.

6. I do not want a credit, debut or cash card on
this account. It is primarily intended for me to
save. Is this possible?

7. I dont not want Internet access. Is this
possible?

BUMP!
Reason: I've been thinking along similar lines of the OP and wondered how things have changed with regard Euro bank accounts for those residing on English turf. Has the scene changed to any great extent?
BB

opening a currency trading account would be easier... keep your savings in a uk bank, and make a trade that will cancel out any sterling falls...
http://www.oanda.com/

Free if you keep a min bal of £1000 lots of currencies available,onshore and only available if you have a sterling current ac.
HAve to apply in branch not available online.

Barclays Currency Account


http://www.personal.barclays.co.uk/BRC1/js...amp;value=12870

http://www.personal.barclays.co.uk/BRC1/js...amp;value=12870

Interesting in time since this mail started back in Jan 2005 the GBPEUR rate has hardly changed though (1.41-1.43). The GBPUSD has increased from 1.85 to 2.06.

Edit - not suggesting an account in dollars is better - the direction needs to be the other direction but just putting size of change in perspective.

Thanks for the help guys, I shall look into this further and possibly start looking for a way to minimise my exposure to any one particular currency.

I think you also could put a few bob into a currency fund. Or tader that deals in currencies.
have a look at www.amasiscapital.com.
There are a lot of others, but I have had good experience with this dealer.

You could just hedge your GBP using a covered warrant. Maybe a bit scary, but an alternative as long as you know what to hedge it against (same problem with transferring cash). See http://uk.warrants.com/services/education/ chapter 3 for information.