Should i get paid in euros or pounds?

Discussion in 'Finance, Property, Law' started by faction, May 13, 2008.

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  1. Ok at the moment im based out in germany and have a german account as well as a british account.
    At the moment im thinking i should get paid purely in euros rather than pounds.

    I came to this conclusion because the MOD pay slightly above the exchange rate meaning id be earning slightly more.
    I played around with a few figures and even if i converted all my euros back to pounds at a loss of 3%, id still be making a profit due to the MOD paying slightly higher than the exchange rate.
    Also im not confident in the pound at the moment especially since inflation rate rose to 3% today.
    Id also like to add i wont be in England much and i have no direct debits in this country. And my intention is to save alot of money.

    Im i making the right decision?

  2. Faction

    The FFR can change and when it does the LOA rate alters too. It all depends on your UK financial comitments etc. However any decision can be fecked up if rates go wrong and the Euro is strong against the pound just now.

    I sually split the pay or keep it in Sterling and suck it up when the FFR is high. Do the maths and see what is best for you!
  3. whats the current FFR and when is it being changed? I heard its done in cycles of every 4months, with the next one being in summer.
  4. I am not in Germany so I don't know. It can change anytime, at the 1st of the month. It does however usually take a sustained period above or below the commercial rate so changes are infrequent.

    I would speak to a someone in the SPS to get them to explain FFR to you so you know exactly what you are doing. Get the facts so you make your best choice.
  5. The fat guys with green hats....

    A wah I hope!
  6. We don't all have green hats :D
  7. Current FFR is €1.31 to £1

    It has changed twice this year 01 Jan from €1.5 to €1.4 then on 01 Apr from €1.4 to €1.31

    Prior to 01 Jan it hadn't changed since May 04 !!
  8. You also need to factor in the tax-free LOA rate to see what is best for you.
  9. Euro, no brainer - be careful of drawing money on UK bank cards through German cashpoints. Far cheaper to open a German account, pay the bank charges and open a Alliace & Leicester Account so you can use ther BFPO.

    For example, £1500 net pay into the German bank gets you 1965 Euro (@1.31 FFR). Pay that 1965 into your A&L through the BFPO (recent rate 1.25) and you get 1572 into your A&L account - 72 profit and all legit. :D