One point worth mentioning on using the Citibank's USD and Euro accounts is that when you make the currency exchange transaction, you get a much more favourable rate when using their online banking rather than making a phone transaction.

I agree with Ian P though, Citibank are a cut above Barclays (and Lloyds) for these accounts.

Nobody can say if it's a good idea because nobody knows which way the money markets will go......however if you want to give it a go have a look at Citi Bank's Euro and Dollar accounts, you'll get a better deal than Barclays.

PS don't only consider the comission rate you need to combine it with their exchange rate as well.

Barclays and I would imagine all the high street banks offer the facility of savings accounts where your money is transferred into euros or dollars without comission on deposit. To withdraw your money transferring it back to pounds comission is currently charged at 3 percent. I am considering opening a dollar and euro account to protect some money against the pound falling even further against the dollar and euro. Do you consider that this is a good idea?