From September for six months I will be paid in Euros in Germany. Is it worth setting up a German bank account for the duration, and having it paid into my UK bank account. I'm not sure what the exchange rate would do to my money, or what kind of charges would be made.

What are you experiences of bank charges and changing currency from euros to other currencies. Because the exchange rate is so crap between the pound and euro at the momment I am pleased to be paid in euros. Would paying these euros in to a UK bank account ruin any benefit of the euros strength?

Apologies for such a routine and stupid question, I have no experience of moving around abroad, but knew people here would!! :$

I wouldnt say the exchange rate is crap :) The pound is much stronger than the euro, so converting from euro to pounds will make your amount seem much smaller.

======= Date Modified 24 Jun 2009 15:43:01 =======
Since you're being paid in local currency, the exchange rates shouldn't really matter if you plan to use the money. If you're planning to save the money, then it's best to keep it in a German account until you can capitalise on a better exchange rate (should that ever happen!). I got a stipend in Euros put in my British account only because I couldn't be bothered setting up a new account, but since you're there for six months, it's probably best to open an account as you then won't be subject to a conversion fee (which if I recall was £20 a month with my bank). You'll also avoid conversion fees/exchange charges from using your British cards in Germany.

Depending on the bank, it may also cost the university to send the money - best to check if they'll allow it.

HSBC have a service for setting up a new bank account abroad (since they have branches virtually everywhere).

I'd vote for a German bank account. They pay almost all bills, rent etc by electronic transfer in Germany and are often unwilling to consider an alternative. This can really soon add up to a lot as your UK bank will charge you for each one (£7 per transfer at my bank and I think they're one of the cheaper ones!). Make sure you've registered with the local Meldeamt (registration office) before you try to open one though - you need that proof of residency normally.

get a German account! for one, there are lots of free accounts, it doesn't cost you a dime. two, as already pointed out, many bills can only be paid by bank transfer, shopping in germany is much easier with a debit card (credit cards are often not accepted) and last but not least, once you have a German account you can transfer money in many countries for free (not the UK though).

apart from that, i doubt that the employer is willing to put money into your british bank account - why should they have the hassle when you can get a bank account in 20 minutes?

Thanks for your useful replies. Looks like a German bank account is the way to go. I'll make sure I register etc