Wise, formerly known as Transferwise, is a London-based fintech company that offers multi-currency accounts capable of sending and receiving money.
Wise accounts can hold and convert money in 54 currencies, allowing the account holder to create “artificial” bank accounts for various countries. Imagine the flexibility of having a US, Euro, Canadian, and countless regional bank details in one account.
Features
- Get bank details for these currencies: the British Pound, Euro, US dollar, Australian dollar, New Zealand dollar, Singapore dollar, Romanian Iei, Canadian dollar, and Hungarian forint.
- US account details include a routing number and all the necessary information. This is beneficial to anyone who receives payments from US-based companies.
- Having a multicurrency account comes in handy when moving countries. Exchanging money and adjusting financially is a breeze.
- Get account details for different currencies to receive money from around the globe. Send money to family and friends globally at affordable rates.
- The account comes with a debit card that can be used for physical and online purchases (This debit card is not currently available in Canada)
- When making a purchase online, Wise automatically converts your money to the currency of the country you’re buying from. If that currency is unavailable, wise will convert to the cheapest available balance.
- Money can easily be converted into 54 currencies.
Pricing
- It’s free to create a Wise account. There are no monthly fees or minimum balances
- There is a 0.40% annual fee if you hold more than €15,000
- Receive and send wire transfers for 7.50 USD
- No rate markups
Is it safe to use Wise
Wise is regulated by FINTRAC which is an agency that is responsible for facilitating the detection, prevention, and deterrence of money laundering, terrorist activity financing, and other threats.
However, Wise is not a bank, therefore your money is not financially protected by schemes such as the CDIC, FDIC, and FSCS, that insure your money if something happens to Wise. Without this protection, there is a possibility that you won’t get your money back if Wise closes. (Although there is a very low chance of this happening).
On the other hand, Wise safeguards your money by depositing funds at banking institutions. Overall, Wise is a trusted company that has been around for 11 years. The company is transparent and serves a large customer base. Here is a quote from their website regarding this issue.
What would happen if Wise became insolvent? The protections afforded by safeguarding stay in place even in the unlikely event that Wise were to become insolvent. However, if this happens, some of this money might be used by an insolvency administrator to pay for their own costs. This means the money returned to you could be lower than the total amount you had in your account. It might also take some time for that insolvency administrator to return the rest of your money back to you.
Competitors
- Paypal
- Remitly
- OFX
- World Remit
- Western Union
- MoneyGram
Who is this for?
Wise is a great financial tool for anyone looking to send, receive, and convert money at affordable rates. Bundled with a multicurrency account, Wise comes in handy for a frequent traveler, contractor, seasonal employee, or anyone looking to have international bank accounts. It’s genius.
