Opening a euro savings account is a good way to hedge against currency fluctuations, prepare for a large euro-denominated purchase or prepare for a vacation in Europe. It's possible to open a euro-denominated account from overseas as an American citizen without paying significant fees. However, you must declare income from the savings account every year and report it to the IRS annually if the amount in the account exceeds £6,500.
Contact an international bank with a European branch. Find out what the fees are, as well as any currency conversion costs. International banks with English-speaking customer service representatives include HSBC, Nationwide International, Barclay's, Lloyds TSB and Bank of Scotland. In some cases, you can open an international bank account immediately online. If you need ATM access in a particular European country, you may prefer to work with a bank that has branches in that country. Ask a customer service representative for more information if you're not sure.
Open the savings account after reviewing all terms and conditions. Compare accounts from different international banks. In many cases, international accounts have a high minimum balance requirement. Also, interest rates are different then those paid in most U.S. banks, because the European Central Bank sets interest rates for banks in the Eurozone. You'll need to pay a currency conversion fee if your money is still in dollars, and you're trying to deposit it in euros. Make sure that you have online banking access to the money. If it's important, find out how much international wire transfers cost.
Declare any income that you earn from the interest paid by the savings account on Treasury Department Form 90-22.1 annually. You're must pay your taxes in dollars even if the interest earned is in euros.