Money in Euros - What do do?

[Andrew[MG]]

One of my friends has around €40k in a RBS euro account which is gathering 0% interest. She has just sold a small apartment and is looking for something to do with the money. After the recent increase of the pound against the euro she is reluctant to bring it back into the UK and lose out. Does anyone know of a good euro account that she could transfer the money into and get at least a little interest until she finds somewhere to invest it???

[J500ANT]

Want my sort code and account number?

[ShadownINja]

Sit tight for a couple of weeks. Euro's been behaving differently in the last week!

[Andrew[MG]]

ShadownINja said:

Sit tight for a couple of weeks. Euro's been behaving differently in the last week!

Are you expecting another drop in the value of the pound?

[Dr John]

Andrew[MG] said:

One of my friends has around €40k in a RBS euro account which is gathering 0% interest. She has just sold a small apartment and is looking for something to do with the money. After the recent increase of the pound against the euro she is reluctant to bring it back into the UK and lose out. Does anyone know of a good euro account that she could transfer the money into and get at least a little interest until she finds somewhere to invest it???

Lloyds Offshore are offering 2% at the moment.

[ShadownINja]

Andrew[MG] said:

ShadownINja said:

Sit tight for a couple of weeks. Euro's been behaving differently in the last week!

Are you expecting another drop in the value of the pound?

Am just looking at what the Euro's done over the last week!

[ringram]

Things are wobbly... euro govt yields are still rising arnt they!?

[Andrew[MG]]

The Lloyds account looks like a good shout in the short term.

Maybe this is the time to buy an apartment in Greece!?!

[walm]

It always astonishes me that people react like this.

Effectively she made a massive bet on the Euro against the pound.
She lost.

Now she is making that bet again.
Does she really know anything about the relative strength GBP:EUR?
If she is happy to risk EUR40k why not double down and move some GBP savings into Euros?

IMHO "Return to the mean" isn't a particularly successful investment strategy - for most investments, there is no mean.
See the BP thread for details. Just because something falls dramatically doesn't mean it will bounce back any time soon.

If she wants to stop being a currency speculator then she should move her money to reflect her expenses.
i.e. 100% GBP expenses means you should have 100% GBP savings.

If she may buy somewhere in the Eurozone again then perhaps it is worth keeping in EUR but if she keeps swapping back and forth then she should recognise that it is currency speculation pure and simple.