How do I buy euros?

By THIS IS MONEY
Updated:

 

I have some sterling cash deposits (more than £10,000) and as an alternative to searching for the best domestic deposit rate I'm interested in purchasing euros. I realise it means taking a foreign exchange risk and reduced interest income. What is the best way of doing this? CB, London

Mailesh Shah of financial consulting firm William M Mercer says: As you obviously realise, the interest rate is about 2.5% (UK base rate equivalent). An alternative is to invest in a cash fund operated by an investment house like Fidelity or Rothschild. These allow you to buy units in euro cash deposits that are then invested in the euro money markets. They tend to pay a better rate than euro deposit accounts and are very low risk. Whichever you choose, shop around for the best rates and compare charges.

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