Many small businesses are already trading in euros or have set up a euro account. We show you who's offering what:
HSBC
HSBC has a range of euro current account offerings for small business use. The Euro Account has no minimum balance requirement, a cheque book facility is available and an overdraft can be negotiated. The bank says the account is designed for those businesses which trade with continental European companies, or UK subsidiaries of continental European companies on a regular basis, and want immediate access to their cash and to be able to deposit funds easily.
Charges: Account maintenance is £2.50 a month. Each cheque issued costs 60p. There is a commission charge of 1% for foreign currency banknotes paid into or withdrawn from a Euro current account.
HSBC also has a current account offering for businesses that trade in other international currencies as well as euro. This has all the benefits of the euro account. Charges: Cheques issued in any major currency: £1.20, Cheques issued in other currencies: £12 and an account charge of £35 per half year. There is also a commission charge of 1% for foreign currency banknotes paid into or withdrawn from a Euro current account.
If you don't need your funds for a given period of time and want to earn interest on your balance HSBC's Fixed term deposit account has guaranteed and tiered rates of interest and money can be deposited at one, two, three, six or 12 months.
Charges: A partial or full withdrawal of funds before agreed maturity date will incur an administration fee (minimum £50 or currency equivalent). A commission charge of 1% for foreign currency banknotes paid into or withdrawn from a fixed term deposit account at start of term or on maturity. Fixed deposits in euro are subject to a minimum balance equivalent of $10,000.
The Call/short-term notice account is for those who use US dollars, euro or any other major currency extensively and want to earn interest combined with immediate access. There is no account maintenance charges if you keep a minimum balance of euro2,800.
Charges: Account maintenance is £35 each half year if cleared balance falls below the required minimum. A commission charge of 1% is applied for foreign currency banknotes paid into or withdrawn from the account
And the Multicurrency cheque book account is for businesses which make regular low value payments in a variety of currencies, but receive income in only one currency and prefer to pay by cheque. Charges: Each cheque issued costs £7. The minimum account management charge is £35 each half year and there is a commission charge of 1% for foreign currency banknotes paid into or withdrawn.
Lloyds TSB
Lloyds TSB has two euro business accounts. The Euro current account allows businesses and sole traders to make and receive payments in euros. A cheque book is available, no minimum balance is required and an overdraft can be arranged. There are no interest payments on balances in credit.
Charges: There is a half-yearly management fee of £12. Euro cheques paid from your account are 59p, cheques paid in are 27p plus a further charge of 70p for credit. Euro BACs paid out are 59p and paid in are 15p. Euro cheques paid into your sterling bank account are charged at £5 each
The Euro call account is also available to those with a euro current account at Lloyds TSB. No minimum deposit is required, but customers get tiered rates of interest on their balances in credit, which is calculated daily and paid out quarterly. There is no cheque book facility and you can only make transfers between this account and your euro current account.
Charges: There is no account management fee.
Barclays
Barclays has two euro accounts, a current account and a reserve account which can earn interest on any balances in credit. The two accounts will work in conjunction.
Euro account: no minimum balance restrictions and customers do not have to have a Barclays sterling account. A cheque book is available. Electronic credits, cheques and drafts will be accepted in any currency and converted as necessary - eurozone currencies are converted at a fixed rate (until January when they will be replaced by the euro) while other currencies are converted at the current floating exchange rate. Cheques paid in which are drawn on euro accounts in the UK will be cleared as domestic items, those drawn on overseas euro accounts will be collected or negotiated as foreign cheques. Overdrafts are available on the account at the bank's discretion. Charges: Standard credit entry: 75p, automated credit entry: 15p, standard debit entry: 54p, automated debit entry: 15p.
Barclays Euro Business Premium Account: This account earns interest on any credit balances denominated in euros -interest is paid quarterly. Interest rates are tiered. There is easy access (through the Euro current account) to funds with no penalty or loss of interest. The minimum balance is EUR 100 and there are no restrictions on deposits or withdrawals.
Charges: No charges on the account itself. All deposits and payments must be made through a Barclays Euro Account and normal transaction charges will apply on that.
NatWest
The bank offers a range of accounts for foreign currency dealings, including a currency extra account and a reserve account for savings. The euro current account has no minimum balance requirement and is available to all businesses with a turnover up to £1m.
Cater Allen allows sterling and currency balances to be held within the same account number. However, it is possible to open a euro account without having a sterling account at the bank. Also small business banking customers of Abbey National who require a euro bank account will be dealt with through Cater Allen.
Cater Allen can convert most major currencies on a same-day basis. Customers can make payments anywhere in the world using Cater Allen's network of corresponding banks and similarly payment's can be credited to customers' accounts by quoting a reference number. A minimum deposit of £5,000 is required to open an account and interest is paid on all balances over this amount.
Charges: There is no account management charge. To pay in cheques costs £15 and for transfers abroad it costs £25. A Gold Visa card is available in sterling,US dollar and euro denominations. There is no fee and no foreign exchange conversion charges levied on the card for either purchases or cash withdrawals.
Alliance & Leicester Business Banking
A&L offers a foreign currency account for small business customers with a turnover of up to £1m. The account means customers get access to the Eurogiro network which is present in 15 countries. The transactions take four to five days and customers pay a flat fee of £5. Payments can also be made by SWIFT, foreign currency drafts and bills of exchange.
Charges: There is no charge to open an account and there are no account management charges. Paying cheques out costs £12.50, a SWIFT/Telex payment costs £15.00. For payments into the account - a Eurogiro costs £5, a SWIFT/Telex costs £5, a cheque deposit costs £12.50.
HSBC
HSBC has a range of euro current account offerings for small business use. The Euro Account has no minimum balance requirement, a cheque book facility is available and an overdraft can be negotiated. The bank says the account is designed for those businesses which trade with continental European companies, or UK subsidiaries of continental European companies on a regular basis, and want immediate access to their cash and to be able to deposit funds easily.
Charges: Account maintenance is £2.50 a month. Each cheque issued costs 60p. There is a commission charge of 1% for foreign currency banknotes paid into or withdrawn from a Euro current account.
HSBC also has a current account offering for businesses that trade in other international currencies as well as euro. This has all the benefits of the euro account. Charges: Cheques issued in any major currency: £1.20, Cheques issued in other currencies: £12 and an account charge of £35 per half year. There is also a commission charge of 1% for foreign currency banknotes paid into or withdrawn from a Euro current account.
If you don't need your funds for a given period of time and want to earn interest on your balance HSBC's Fixed term deposit account has guaranteed and tiered rates of interest and money can be deposited at one, two, three, six or 12 months.
Charges: A partial or full withdrawal of funds before agreed maturity date will incur an administration fee (minimum £50 or currency equivalent). A commission charge of 1% for foreign currency banknotes paid into or withdrawn from a fixed term deposit account at start of term or on maturity. Fixed deposits in euro are subject to a minimum balance equivalent of $10,000.
The Call/short-term notice account is for those who use US dollars, euro or any other major currency extensively and want to earn interest combined with immediate access. There is no account maintenance charges if you keep a minimum balance of euro2,800.
Charges: Account maintenance is £35 each half year if cleared balance falls below the required minimum. A commission charge of 1% is applied for foreign currency banknotes paid into or withdrawn from the account
And the Multicurrency cheque book account is for businesses which make regular low value payments in a variety of currencies, but receive income in only one currency and prefer to pay by cheque. Charges: Each cheque issued costs £7. The minimum account management charge is £35 each half year and there is a commission charge of 1% for foreign currency banknotes paid into or withdrawn.
Lloyds TSB
Lloyds TSB has two euro business accounts. The Euro current account allows businesses and sole traders to make and receive payments in euros. A cheque book is available, no minimum balance is required and an overdraft can be arranged. There are no interest payments on balances in credit.
Charges: There is a half-yearly management fee of £12. Euro cheques paid from your account are 59p, cheques paid in are 27p plus a further charge of 70p for credit. Euro BACs paid out are 59p and paid in are 15p. Euro cheques paid into your sterling bank account are charged at £5 each
The Euro call account is also available to those with a euro current account at Lloyds TSB. No minimum deposit is required, but customers get tiered rates of interest on their balances in credit, which is calculated daily and paid out quarterly. There is no cheque book facility and you can only make transfers between this account and your euro current account.
Charges: There is no account management fee.
Barclays
Barclays has two euro accounts, a current account and a reserve account which can earn interest on any balances in credit. The two accounts will work in conjunction.
Euro account: no minimum balance restrictions and customers do not have to have a Barclays sterling account. A cheque book is available. Electronic credits, cheques and drafts will be accepted in any currency and converted as necessary - eurozone currencies are converted at a fixed rate (until January when they will be replaced by the euro) while other currencies are converted at the current floating exchange rate. Cheques paid in which are drawn on euro accounts in the UK will be cleared as domestic items, those drawn on overseas euro accounts will be collected or negotiated as foreign cheques. Overdrafts are available on the account at the bank's discretion. Charges: Standard credit entry: 75p, automated credit entry: 15p, standard debit entry: 54p, automated debit entry: 15p.
Barclays Euro Business Premium Account: This account earns interest on any credit balances denominated in euros -interest is paid quarterly. Interest rates are tiered. There is easy access (through the Euro current account) to funds with no penalty or loss of interest. The minimum balance is EUR 100 and there are no restrictions on deposits or withdrawals.
Charges: No charges on the account itself. All deposits and payments must be made through a Barclays Euro Account and normal transaction charges will apply on that.
NatWest
The bank offers a range of accounts for foreign currency dealings, including a currency extra account and a reserve account for savings. The euro current account has no minimum balance requirement and is available to all businesses with a turnover up to £1m.
Charges: There are no management charges and basic banking transactions are free. Cheque clearing costs £14 for transactions up to £10,000 and £26 over that amount. Foreign drafts cost £8 up to £100, £16 up to £5,000, £24 up to £10,000 and £40 over that amount. Customers can also use NatWest Relay which guarantees to get money to its destination in a week for just £10.
Cater AllenCater Allen allows sterling and currency balances to be held within the same account number. However, it is possible to open a euro account without having a sterling account at the bank. Also small business banking customers of Abbey National who require a euro bank account will be dealt with through Cater Allen.
Cater Allen can convert most major currencies on a same-day basis. Customers can make payments anywhere in the world using Cater Allen's network of corresponding banks and similarly payment's can be credited to customers' accounts by quoting a reference number. A minimum deposit of £5,000 is required to open an account and interest is paid on all balances over this amount.
Charges: There is no account management charge. To pay in cheques costs £15 and for transfers abroad it costs £25. A Gold Visa card is available in sterling,US dollar and euro denominations. There is no fee and no foreign exchange conversion charges levied on the card for either purchases or cash withdrawals.
Alliance & Leicester Business Banking
A&L offers a foreign currency account for small business customers with a turnover of up to £1m. The account means customers get access to the Eurogiro network which is present in 15 countries. The transactions take four to five days and customers pay a flat fee of £5. Payments can also be made by SWIFT, foreign currency drafts and bills of exchange.
Charges: There is no charge to open an account and there are no account management charges. Paying cheques out costs £12.50, a SWIFT/Telex payment costs £15.00. For payments into the account - a Eurogiro costs £5, a SWIFT/Telex costs £5, a cheque deposit costs £12.50.
