I live in the UK and am looking at opening a USD account. The primary reason for this is that I work for an American company whose employee share plan deals in USD, so it is required for that. However, I have thought of perhaps other uses too. I am not in any way a financial expert so I am wondering if my ideas make any sense.
Firstly, I intend/expect to travel to the US a bit over the next few years. So, I thought that in order to save cash for spending on those trips it would be better for me to save directly in dollars each month. Rather than saving in sterling and converting it to dollars in one big transaction just before travelling. I figure if I spread out exchanges then on balance I am usually going to get a better effective rate than if I leave myself at the mercy of whatever the rate happens to be when I convert in one go.
Secondly, I know it is a good idea to spread one's savings across a number of areas (cash, investments, gold etc.) if you want to see it grow. So, I thought why not save for the long term in multiple currencies. Rather than leave my cash savings as just sterling, I could spread them across a few currencies and theoretically see more growth. Does this make sense? I am honestly very much a novice here. But, given that interest rates vary based on the issuing central bank, I think I'll get different rates for different currencies and won't just have to rely on the rate for one currency doing well for me.