Sep. 7--Several readers have asked about depositing foreign currency into their California bank account. Here's what we found.

Can a U.S. citizen have a checking or savings account where foreign currencies -- say European euros or Chinese yuan -- are held and deposited, without being converted to U.S. dollars?

--David L., Cincinnati, Ohio

I do some buying and selling overseas and recently received a "eurocheck" from Germany for 2,950 euros, which was about $4,630 at the current exchange rate. My bank branch in Sacramento took the check and said it would take five to 10 days to process. When the German check was finally deposited into my account, it was for $150 less than the full amount. I was charged fees no one told me about. This seems outrageous. Is there a better deal out there?

--Paul C., Sacramento

When it comes to foreign currency, there's no single policy among California banks on how -- or even whether -- to accept foreign funds.

"It's on a bank-by-bank basis: Some banks will, and others do not," said Beth Mills, spokeswoman for the California Bankers Association.

That means you have to do your homework. For any type of transaction involving foreign currency, call several banks or financial institutions to compare their requirements, rates and fees.

As for the first question, larger banks are most likely to let you open -- and hold -- an account in foreign funds.

Bank of America and Wells Fargo, for instance, allow their business clients to open such accounts through their foreign currency departments. But it's usually for large amounts, starting at $100,000 or more. Check with individual banks on their requirements for minimum deposits, etc.

What if you walk into a bank with a pocketful of pesos or euros, say from a vacation or business trip to a foreign country?

Most banks will convert it for you into U.S. dollars, but you'll be charged varying fees based on the daily conversion rate. (For a handy conversion calculator, go to www.finance. yahoo.com/currency.)

Because fees vary, the California Bankers Association recommends getting at least three comparison quotes.

Bank of America, for instance, will exchange its customers' foreign currency but only paper, not coins. BofA spokeswoman Colleen Haggerty said the most common requests are for Canadian dollars, British pounds and euros.

At smaller banks or credit unions like Sacramento-based Golden 1 Credit Union, it's checks only, said CEO and President Teresa Halleck.

"If somebody came back from a trip to Europe with euros, for instance, we couldn't deposit them, either in coins or paper currency," Halleck said.