An Overview of Foreign Currency Accounts 

You could start a Dollar account or any other strong currency and place all or part of your money in there if you make an AED wage, but perceive a great probability that a dollar market will be boosting over the following 10 years. You may set aside a certain amount monthly so that your account will continue to grow. If the currency falls, your money in Dollars will probably be safe and worth considerably more. This also implies that the Dollar will not fall. 

How does Foreign Currency Account work? 

Generally, your normal bank account translates money from and to US dollars for foreign currency transactions. However, you may send and receive payments in other currencies using a foreign currency account. 

By eliminating excessive conversion costs, you save time with a simplified transaction and money. And you won't have to concern yourself with the swings in short-term currencies. 

The option to move between currencies allows you to use high exchange rates to send money abroad without any additional expenses for wire transfers or banking transactions. This is also possible. 

How to Select Bank for Foreign Currency Account? 

Find a foreign currency account that is flexible enough to meet your demands by comparing several banking accounts. Weighing considerations including: 

Currencies supported. 

Many banks support a few major currencies at least, but be sure that they are accepted. 

Minimum account. 

To open a foreign currency account, a minimum monthly account balance is required for certain banks. Find a cash flow match to prevent excessive charges and fines.

Charges for an account. 

Ask for a comprehensive list of charges, so you won't surprise your account with a large service charge every month. See also for handling or processing fees on certain currencies and transactions. 

Conversion fees for currency. 

Besides the exchange rate variations, each time you convert your money into another currency, your bank may impose a fee. 

Amounts of transfer. 

Transaction restrictions differ by the bank, but you will want to ensure that your account can handle normal company payment quantities – minimum and maximum amounts. Speed of rotation. Learn how long the usual transaction between your home banks and accounts in other countries takes before selecting an account. 

Support and flexibility. 

Foreign currency accounts can be selected for phone, online, or branches transferred, deposited, or withdrawn. Request costs for each option. 

Benefits of a Foreign Currency Account 

A foreign currency account might save time and money if you deal in different currencies on a regular basis. This sort of account allows you to handle various currencies, improve exchange rates and expedite the process of sending and getting money, whether for personal or commercial reasons. Many big banks provide foreign transaction accounts; be sure that you know all fees in advance of registration. 

No tax on income 

FC account deposits are not taxable! So you may get and deposit an adsense check on your FC account without paying any taxes! 

No withdrawals WHT: 

No withdrawals from FC accounts are subject to Holding Tax (WHT). AED25,000 or more withdrawn from AED accounts shall be WHT subject, however, WHT shall not be responsible for withdrawals from FC accounts! So even thousands of US dollars might be withdrawn, and not one hundred paid! 

Subsequent transfers from international wire: 

An FC account can send money to a foreign country via outbound SWIFT transfer. This technique allows you to pay hosting fees and other costs.

Conclusion 

Mashreq bank in UAE offers foreign currency accounts for its customers. Along with an Islamic business account now businesses can enjoy the perks of foreign currency accounts as well.