Yes, you can hold euros in a US bank account, but most banks charge fees and offer poor exchange rates

Most major US banks will let you open a foreign currency account or multi-currency account that holds euros alongside dollars. However, the bank does not treat euros the same way it treats dollars. You will pay conversion fees when you deposit euros, fees when you withdraw them, and ongoing maintenance fees on some accounts. The exchange rate the bank offers you is typically 1 to 3 percent worse than the mid-market rate you would see on financial news sites.

Some banks make this easier than others. Large banks like Bank of America, Chase, and Citibank offer foreign currency accounts, but they are designed for customers moving money internationally or holding currency for business reasons, not for everyday savings. Smaller regional banks and online banks often do not offer this service at all. If you need to hold euros regularly, a specialist money transfer service or a multi-currency fintech account may cost you less.

Key Takeaways

  • US banks can hold euros for you, but they charge conversion fees on deposits and withdrawals, plus monthly or annual account maintenance fees on some accounts.
  • The exchange rate a bank offers is typically worse than the mid-market rate by 1 to 3 percent, which means you lose money on every conversion.
  • Large banks like Chase and Bank of America offer foreign currency accounts, but online banks and credit unions often do not.
  • If you move money to euros frequently, a multi-currency fintech account or money transfer service may cost less than a traditional bank account.

How US banks handle euro deposits and withdrawals

When you deposit euros into a US bank account, the bank converts them to dollars at its own exchange rate, not the rate you see on the news. That rate is called the mid-market rate, and it is the true cost of converting one currency to another. Banks add a markup to that rate—typically 1 to 3 percent—and pocket the difference. On a €1,000 deposit, that markup can cost you $10 to $30.

When you withdraw euros from your account, the bank converts dollars back to euros and charges you again. You pay the markup twice: once on the way in, once on the way out. Some banks also charge a flat fee per transaction—$15 to $50—on top of the exchange rate markup. A few banks waive the flat fee if you maintain a high balance in the account, but the exchange rate markup remains.

The account itself may carry a monthly or annual fee. Some banks charge $10 to $25 per month just to keep a foreign currency account open. Others waive the fee if you maintain a minimum balance, which can range from $2,500 to $25,000 depending on the bank.

Which US banks offer foreign currency accounts

Chase offers a Multi-Currency Account that holds euros, British pounds, Canadian dollars, Japanese yen, and Swiss francs. There is no monthly fee, but you pay the exchange rate markup on conversions. Chase also charges a $15 flat fee per wire transfer in or out of the account.

Bank of America offers foreign currency accounts through its International Services division. The account holds euros and other major currencies. Bank of America charges a monthly maintenance fee (typically $10 to $15) and the exchange rate markup on conversions. The flat fee per transaction varies by account type.

Citibank offers a Citigold Foreign Exchange Account for customers who maintain a Citigold relationship (usually $200,000 or more in deposits). The account holds euros and other currencies, but the fees and exchange rates depend on your account tier.

Most regional banks, credit unions, and online banks do not offer foreign currency accounts. If your bank does not, you have two alternatives: use a money transfer service like Wise or OFX, or open an account with a multi-currency fintech company like Revolut or Wise (which also offers a bank-like account in some countries).

Exchange rates and the real cost of holding euros

The difference between the mid-market rate and the bank's rate is called the spread. On a typical day, the mid-market rate for euros to dollars might be 1.10 (meaning €1 = $1.10). A bank might offer you 1.07 or 1.08 instead. That 2 to 3 percent difference is how the bank makes money on your conversion.

Over time, this adds up. If you convert €10,000 at a 2 percent spread, you lose $200. If you do this twice a year, you lose $400 annually just to the spread, before any flat fees. Add a $15 monthly maintenance fee, and you are paying $180 per year in fees alone.

Money transfer services like Wise charge a smaller spread (usually 0.5 to 1 percent) and lower flat fees ($0 to $5 per transfer). If you move money between euros and dollars more than a few times per year, a money transfer service will cost you significantly less than a bank account.

Tax reporting and FBAR requirements

If you hold more than $10,000 in foreign currency accounts at any point during the year, you must report the account to the US government on Form FinCEN 114, also called the Foreign Bank Account Report (FBAR). This applies even if the account is with a US bank. The deadline is April 15 (or October 15 if you file an extension).

You must also report the account on your tax return if the total value of all your foreign accounts exceeds $10,000. The IRS uses this information to track whether you owe taxes on interest or gains from the account.

A US bank account that holds euros is still a US account, so the bank reports it to the IRS like any other account. You do not face additional scrutiny just because the account holds euros instead of dollars. However, if you fail to report a foreign account over $10,000, the penalties are steep: $10,000 per violation, or 50 percent of the account balance, whichever is larger.

Alternatives to holding euros in a US bank

If you move money between euros and dollars regularly, a multi-currency money transfer service is usually cheaper than a bank. Wise (formerly TransferWise) offers a multi-currency account that holds euros, pounds, and other currencies. You can convert between them at the mid-market rate plus a small fee (usually 0.5 to 1.5 percent). Wise does not charge monthly fees, and you can withdraw euros to a European bank account or spend them with a Wise debit card.

OFX and Remitly are similar services. They charge per transaction rather than per month, and their exchange rates are better than traditional banks. The tradeoff is that they are not FDIC-insured like a bank account, so your money is not protected if the company fails. However, both services hold customer money in segregated accounts, which provides some protection.

If you live in the US but spend time in Europe, a European bank account might make more sense. You can open an account with a European bank (or a fintech like Revolut or N26) and hold euros there. You avoid the conversion fees and the US reporting requirements. The tradeoff is that you cannot access the account as easily from the US, and you may face higher fees if you wire money back to the US.

When holding euros in a US bank makes sense

A US bank euro account is most useful if you receive euros regularly (from a European employer, client, or investment) and want to hold them without converting to dollars immediately. If the euro is weak and you expect it to strengthen, holding euros lets you time your conversion. If you convert only once or twice a year, the bank's fees may be acceptable.

A euro account is less useful if you convert frequently or move small amounts. Each conversion costs you money, so if you are converting €500 at a time, the flat fees and spread will eat into your balance quickly. In that case, a money transfer service or a European account is cheaper.

A euro account is also less useful if you simply want to save euros long-term. US banks typically pay little or no interest on foreign currency accounts. A European savings account or a money market account in euros will pay you more interest, though you will face currency risk if the euro weakens against the dollar.

Frequently Asked Questions

Do I need a minimum balance to open a euro account at a US bank?

Most banks require a minimum opening deposit of $1,000 to $5,000 for a foreign currency account. Some banks waive monthly fees if you maintain a higher balance, typically $10,000 or more. Check with your bank for its specific requirements.

Can I earn interest on euros held in a US bank account?

Most US banks pay little to no interest on foreign currency accounts. Interest rates on euro accounts are typically 0 to 0.5 percent annually. If you want to earn interest on euros, a European savings account or money market fund will pay more, though you will face currency risk.

What happens if the euro weakens while I hold it in a US bank?

If you hold euros and the euro weakens against the dollar, your euros are worth fewer dollars when you convert them back. The bank does not protect you from currency risk. You bear the risk of exchange rate changes, just as you would if you held euros in a European account.

Can I transfer euros directly from my US bank to a European bank?

Yes, you can wire euros from a US bank account to a European bank account. The US bank will charge a wire fee (typically $15 to $50) and may charge an additional conversion fee if the wire is in euros. The receiving bank may also charge a fee. Total costs can range from $30 to $100 per wire.

Is a US bank euro account FDIC-insured?

Yes, foreign currency accounts at FDIC-insured banks are covered by FDIC insurance up to $250,000 per account owner, per bank. However, the insurance covers the dollar value of the euros, not the euros themselves. If the bank fails, you receive dollars equal to the euro balance at the time of failure.