Final Information to Multi-Foreign money Digital Accounts (2021), Cash Information

Digital multi-currency accounts disrupt the currency exchange room and give the term “light baggage” a whole new meaning.

As more and more multi-currency digital accounts come to Singapore, the days of monitoring exchange rates, deciding exactly how much money to change, and physically visiting a money changer may be a thing of the past.

A mobile app now gives you the option of exchanging, holding and spending foreign currencies without additional bank charges (in the truest sense of the word!).

Not to mention that if you enjoy shopping on sites like ASOS, TaoBao, or eBay (like us) you can save quite a bit by simply trading in their home currency.

What is a multi-currency account?

In general, there are two types: traditional multi-currency accounts and digital multi-currency accounts.

Traditional multi-currency accounts are offered by commercial banks such as DBS, UOB and HSBC. These accounts, which work much like a regular savings account, allow you to hold and trade up to 12 currencies at a time, with some offering interest rates.

Multi-currency digital accounts are offered by hybrid digital banking solution companies such as Wise, YouTrip, Nium (formerly InstaRem), Revolut and Wirex. These accounts, which function similarly to a debit card account, allow you to exchange up to 40 currencies, make transactions in over 150 currencies and withdraw cash from any foreign ATM.

ALSO READ: Multicurrency Travel & Wire Transfer Digital Accounts: What’s the Best Multicurrency Account?

How does a digital multi-currency account work?

Think of it as a debit card account that you need to deposit money into before you spend it. The difference lies in the possibility of exchanging foreign currencies at the interbank rate, holding them and issuing them in several foreign currencies. All of this via a dedicated mobile app that doubles as a digital wallet.

With a digital multi-currency account, you also have the option of applying for a physical card with which you can pay for items at the counter and withdraw cash from any ATM worldwide.

This would be extremely handy if you need cash to do your shopping in markets or smaller stores where cashless transactions are not widely accepted.

Multi-currency digital accounts available in Singapore

wise

The UK-based fintech company enables travelers in Asia to avoid high exchange rate fees when spending money overseas. Wise’s USP lies in its promise of low conversion fees based on mid-range rates and the ability for users to save the maximum number of currencies (among existing market participants).

You can withdraw up to $ 350 every 30 days abroad from any ATM abroad, wherever MasterCard is accepted. The downside is that there are registration, retirement, and annual fees. Typically, you will be charged a 0.34% to 3% fee based on the amount transferred and the current exchange rate.

Wise also allows you to store and exchange 54 currencies including Singapore Dollars (SGD), Malaysian Ringgit (MYR), Hong Kong Dollars (HKD), US Dollars (USD), Euro (EUR), British Pound (GBP), Japanese yen (JPY), Thai Baht (THB), among others.

advantages

• You can spend in over 150 currencies worldwide with no international transaction fees.
• For cards issued in Singapore, you can withdraw cash free of charge from foreign ATMs twice a month. If the total exceeds $ 350, a fee will be charged.
• Bonus points for transparency as you can check the exchange rates in real time in the app.
• Save up to 12 percent on Booking.com when you pay with Wise.
• Currently, you can only receive payments in nine currencies (GBP, AUD, USD, CAF, HUF, SGD, NZD, EUR and TRY).

disadvantage

• The setup can take several minutes.
• Applying for a physical card costs $ 10.

ALSO READ: The Differences Between Bank Account Types You Need To Know

Your journey

With YouTrip you can convert up to 10 foreign currencies and make payments in over 150 currencies without transaction fees. It is also available as a physical card from Mastercard that you can use for counter purchases or cash withdrawals abroad.

With their dedicated mobile app, you can monitor, convert and hold up to 10 currencies with real-time updated rates. Plus, you can easily top up your YouTrip wallet with any Singapore credit or debit card (up to $ 3,000) with no banking or signing required.

advantages

• Swap, hold and pay in over 150 currencies.
• No withdrawal limit at a foreign ATM.

disadvantage

• No way to exchange excess foreign currency back into Singapore dollars.
• Cash withdrawals from ATMs abroad cost $ 5 per transaction.
• Only supports 10 currencies.

Nium (formerly Instarem)

Renamed Nium, Instarem is a Singapore-based digital cross-border payments company with a presence in the Asia Pacific, North America and Europe. Nium enables money transfers to over 60 countries, including South Korea, Thailand and India, at significantly lower costs.

Interestingly, it is the first non-bank to offer money transfers from India. While registration is free, Instarem charges a nominal fee of between 0.25 percent and 1 percent to cover the costs of processing a transaction.

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Like Wise, Instarem mainly focuses on digital money transfer services. But it’s designed for people and businesses that consider the challenges of paying freelancers, salespeople, and employees overseas.

The Visa-enabled Amaze card was only launched in December 2019. What makes them a potential winner is their advantage as a go-to card that allows you to link up to five debit or credit cards to the account. Plus, you’ll benefit from a 1 percent cashback accumulation rate on top of the Reward Points or Cashback your linked credit card (s) would earn.

This is capped at $ 100 per quarter, which equates to $ 400 per year. This is not shoddy at all as it will stack on top of your own credit card’s earning rate.

You can also take advantage of the Amaze World Mastercard if you do not currently have a credit card of this level. Finally, you can track your expenses for each of the five cards that you linked to Amaze through the Instarem app.

advantages

• Allows you to earn bonus InstaPoints when you join, refer members, and transfer funds.
• Companies can pay multiple beneficiaries at once in their local currency.
• It allows payments to China in both CNY and USD in support of the Belt & Road initiative.
• Transfers are quick, within two working days.

disadvantage

• There is a minimum transfer amount. For Singapore, you need to transfer at least $ 200.
• There is also a maximum amount you can make when sending money from countries like India, Malaysia, and the United States.

Revol

With Revolut, you can exchange money, make payments, withdraw, transfer and receive cash on the go with no interbank transaction fees. To take full advantage of Revolut’s features, request a physical Revolut card. This can be used for over-the-counter purchases and cash withdrawals up to $ 350 from ATMs around the world with no transaction fees (maximum of $ 350 per month)!

However, if you plan to spend, convert, or withdraw cash frequently and in significant amounts overseas, you should sign up for one of Revolut’s paid accounts at a cost of $ 9.99 and $ 19.99 per month. These accounts give you access to higher exchange and cash withdrawal limits; among other additional functions.

advantages

• Full control of your digital account and your physical card through the dedicated app.
• For an additional level of security, Revolut offers the option of enabling location-based security to protect against fraud.
• Withdraw up to $ 350 per month in cash from overseas ATMs with no transaction fees on a standard account.
• Supports up to 28 currencies in Singapore.

disadvantage

• A flat-rate surcharge is levied for certain currency exchanges at the weekend.
• A flat fee of 0.5 percent applies to any currency exchange of more than $ 9,000 per month (applies to holders of a standard account only).

Wirex

Like the other digital multi-currency accounts listed here, Wirex offers the ability to trade in 150 traditional currencies and exchange up to 12 traditional currencies.

But what makes Wirex so special? It offers the ability to exchange, hold and spend in 8 cryptocurrencies, namely Bitcoin, Ethereum, Litecoin, XRP, Wirex Token, Dai, Nano and Stellar Lumens.

You can convert traditional currencies and cryptocurrencies to your heart’s content via the Wirex app or website – currency in cryptocurrency, cryptocurrency in currency or cryptocurrency in cryptocurrency. Not to mention, you earn actual rewards when you transact cryptocurrency!

Save, spend and earn up to 1.5 percent on your Bitcoin account when you transact with the Wirex Travelcard.

advantages

• Easily exchange, hold and spend traditional currencies or cryptocurrencies (and earn rewards) all in one app.
• Withdraw up to $ 300 (approximately $ 406) in cash per day from any overseas ATM with no transaction fees.
• No cap or additional fees on the traditional currency amount exchanged.

disadvantage

• Limited number of traditional currencies – only 12.
• If you have funds on your account and have not made a transaction for more than nine months, Wirex will charge you a dormant fee of $ 5.

Conclusion

Although these multi-currency digital accounts serve a similar primary purpose, they are not constructed in exactly the same way. Some of these accounts offer more currency exchange options while others have a higher cash withdrawal limit. So before you decide on one, we recommend that you consider how often you travel, where your trips are taking you, and how you will be spending when traveling.

If you travel less than 3 times a year, one of the multi-currency digital accounts mentioned above is a good choice. Be sure to read the fine print, and most importantly, request the physical card at least two months in advance (quite a long wait, but definitely worth it).

ALSO READ: A Avid Investor’s Guide to Cryptocurrency (2021)

For those who travel frequently, Wise or Wirex might be worth considering, and Revolut if you’re considering subscribing to one of their paid accounts. Wise offers a large number of foreign currencies and the ability to transfer money (even without a Wise account) with no additional fees, making it a good choice for those who are seriously wanderlust or frequently on business.

Wirex, on the other hand, allows you to receive cash up to $ 300 per day on request and with no transaction fees.

This article was first published on SingSaver.com.sg.