johnnyone

I would have thought the pound must strengthen over the next year as uk interest rates rise and deflation remains a risk in europe although this may partly be factored in to the current rate.
At the end of the day it's a bet in a market that has proved to be corrupt.

MrsMac59

We're certainly loading up our currency cards at the moment as we've not seen Sterling/Euro exchange rates as advantageous as they are now for a long, long time. Johnnyone is quite right - you pays your money and you takes your chance but I'd rather lock in some cash at 0.80 than 0.84 which is where the rate was only three short months ago.

Ben1986

Thanks to both of you for your replies.

It's definitely a toss up between earning interest in a Satander 123 account while their rate is so high and exchanging it all to € so I don't miss out on a favorable rate.

However, Smart Currency Exchange have just thrown in a curve ball by saying I can fix the exchange rate for up to twelve months - thus I can earn a year's interest in a sterling account and then at the end of it I have the Euros at today's exchange rate!

Seems like a very good option!

Have you any experience with SMART currency exchange?

shirley and anthony hide

Have they said what the forward rate would be?With sterling and euro rates where they are now ,You would have to pay a premium to sell gbp 1 year forward.

Ben1986

They said it was free to fix the FX rate. They buy the amount of euros you need at the current rate and you pay later when you need them.

I'm not sure if there's a holding or service fee involved, but it sounded like there wasn't. Obviously I'd do a lot more research before making a decision.

shirley and anthony hide

I would think that you would have to pay an upfront deposit .Probably 10 percent of the total.remember these companies are not under the FSA guarantee scheme,so if they bust you lose your money.I have worked out roughly the 1 year forward rate would be about 1 big figure lower than the spot.so spot 1.2500 forward 1.2400.Just ask them for a good level at where they will sell you euros fwd and see what the difference is to the spot rate,1.2480 as we speakBy the way you can open a euro account they pays interest.For example check out Nationwide international