Lloyds Bank vs. Wise - A complete comparison

Thinking of opening a new account, or switching provider? There are a huge number of options available, from accounts with traditional banks right through to digital money apps.

In this guide, we’ll be comparing the old and the new. It’s British banking institution Lloyds Bank versus innovative alternative, e-money institution Wise. Both have accounts suitable for everyday money management, but which is right for you?

Read on to find out, as see how Lloyds Bank and Wise compare on all the things that matter. This includes account features, fees, security and how both work internationally - whether you want to send money abroad or use your card overseas.

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After reading this, you should be all clued up on both providers, and able to choose the right fit for your needs.

So, let’s dive in with some background info on each provider.

Lloyds Bank vs. Wise - an overview

Lloyds Bank is one of the ‘big four’ banks in the UK, along with HSBC, Barclays and NatWest. It has a long history dating all the way back to 1765, and is one of the most trusted names in British banking.

Lloyds offers a full range of services and accounts for personal and business customers. This includes current and savings accounts, investment products, insurance, loans, mortgages, pensions, car finance and much more. It also handles private and international banking.

Wise is quite different. It’s not a bank, but a financial technology company that offers a number of bank-like services.

It was founded in the UK in 2010 and originally called Wise. Rebranded as Wise, it specialises in international money transfers and also has a multi-currency account. All services and accounts are accessed online or through the Wise mobile app.

Wise has products for both personal and business customers.

Lloyds Bank has a network of physical branches throughout the UK, while Wise is a fully digital financial solution.

Lloyds Bank vs. Wise - accounts

Now, let’s take a look at the different account types available at Lloyds Bank and Wise.

Wise has just one feature-packed online account, while Lloyds offers a range of current accounts.

Account types

Lloyds Bank has quite a wide range of current accounts to choose from, including the following:¹

• Classic - a straightforward account for free everyday banking, with a debit card and access to the mobile banking app.
• Club Lloyds - a current account with extra features such as credit interest and a yearly lifestyle benefit (i.e. free cinema tickets or streaming subscriptions) in exchange for a £3 monthly fee.
• Silver - a packaged bank account with benefits including travel and mobile insurance, for a £10 monthly fee.
• Club Lloyds Silver - an account offering the best of both Club Lloyds and Silver, with a monthly fee amounting to £13.
• Platinum - a premium packaged account offering benefits such as worldwide insurance, breakdown cover and mobile insurance, for a fee of £21 a month.
• Club Lloyds Platinum - an account offering the best of both Club Lloyds and Platinum, for a monthly fee totalling £24.

The bank also has specialist accounts for children, teens and students.

Meanwhile, Wise has its multi-currency account. It’s an electronic money account, not a bank account, but it offers a number of bank-like features. We’ll explore these next.

Account features

The features you’ll get with a Lloyds current account depends on which one you go for. The standard Classic account offers the following:²

• Access to the Lloyds mobile banking app
• Earn up to 15% cashback when spending on your debit card at selected retailers
• Save the Change - a feature that automatically rounds-up your spending and transfers the difference to a linked Lloyds savings account
• Money Manager tool
• UK and international payments

Choose one of the accounts with a monthly fee, and you’ll unlock extra features. For example, the Club Lloyds account offers monthly credit interest on your balance, and a yearly lifestyle benefit such as free cinema tickets or a 12 month Disney+ subscription. It’s all for a monthly fee of £3, waived if you pay in at least £2,000.²

Lloyds packaged accounts offer even more perks, such as travel insurance, mobile insurance, breakdown cover and more.

The Wise account is a little different, although offers a few of the same features as a bank account. Here’s what you can do with it:

• Hold and convert between balances in 40+ currencies, all managed online or through the Wise app
• Send fast, secure international payments to 70+ countries for low fees
• Receive money for free in 10 major currencies with local account details for each
• Spend in 150+ countries with the Wise debit card (available for a small extra cost), with no foreign transaction fees
• Get mid-market exchange rates on all currency conversions

Cards

You’ll get a debit card with both the Lloyds Bank and Wise accounts.

With Lloyds, you’ll get a free Visa debit card issued automatically when you open an account. It’ll be posted out to you once the account is up and running. There are no initial or monthly fees connected to the Lloyds card.

You can use it both in the UK and overseas, wherever Visa payments are accepted. The card can also be added to mobile wallets such as Google Pay and Apple Pay. This makes it easy to make contactless payments using just your phone, without the need to take your physical debit card out with you.

Lloyds also offers a range of credit cards, if this is something you’re interested in.

The Wise card is available for a one-time fee of just £7, and you can get it once you open a free Wise account. It can also be used in the UK and worldwide, with no foreign transaction fees. It automatically converts currency using mid-market exchange rates, while other cards tend to use Visa or Mastercard rates.

You can also get virtual debit cards with Wise, along with adding your card to mobile wallets.

Please see the Terms of Use for your region or visit Wise fees & pricing for the most up-to-date information on pricing and fees.

Eligibility and how to open an account

To sign up with Lloyds Bank, you’ll just need to be a UK resident aged 18 or over. You can open an account online, visit a local branch (find your nearest here) or call 0800 015 4000.²

To get the Wise account, you just need to be aged 18 or over and live in the UK or a county where Wise operates. You can apply online or through the Wise app.

For both providers, you’ll need to have some form of ID when you sign up.

Wise may request additional documents to verify a customer's identity

Lloyds Bank vs. Wise - fees

Now we come to the important part - how much does it cost to use Lloyds Bank and Wise, and which is cheaper?

To compare the two properly, we’ve put together a handy table of all the relevant fees and charges you need to know about:

	Lloyds fees	Wise fees
Opening an account	Free	Free
Monthly maintenance fees	- Free Classic account - Other accounts have a monthly fee of £3-£24	Free
Getting a debit card	Free	£7 one-off cost
Sending international payments	- Free for EUR - £9.50 for other currencies	From 0.43% (varies by currency)
Receiving international payments	- Free for EUR - £2 for up to £100 - £7 for £100+	Free in 9 major currencies - fee for USD Wire
Overseas debit card purchases	2.99% + £0.50 (except for Platinum accounts and purchases in EUR in EEA)	No foreign transaction fees
Overseas debit card withdrawals	2.99% + £1.50 (except for withdrawals in EUR in EEA)	Free up to £100 a month 1.75% + 0.50 afterwards (ATM operators may charge their own fee)

Please see the Terms of Use for your region or visit Wise fees & pricing for the most up-to-date information on pricing and fees.

Lloyds Bank vs. Wise - international money transfer

You can send money within the UK and overseas with both Lloyds Bank and Wise. But how it works is quite different for each provider.

Like many banks, Lloyds uses the SWIFT system for international transfers. And this usually comes with high fees of up to £9.50 per transfer. There may even be a correspondent or receiving bank fees of between £12 and £20 on top of that. ³

And then there’s the exchange rate for converting currency. Lloyds Bank adds a margin to the mid-market exchange rate,³ which is the rate that banks use to trade currencies between themselves. This is how the bank makes money, but it means that the transfer is more expensive for you.

Wise, meanwhile, is all about moving money across borders. It was set up to make international payments easier and cheaper. And crucially, it only ever uses the mid-market exchange rate when converting currency - with no margins added on top.

Open a Wise Account Today 🚀

The Wise rate applies to everything from sending money and converting currency to using your Wise card to spend or withdraw cash overseas.

When you have a Wise account, you can send money worldwide for low, transparent fees starting from just 0.43%. This is much lower than many banks.

You can set up payments online or in the Wise app in just a few quick steps, and you’ll see exactly what you’ll be paying upfront. You can even check the cost and exchange rate in advance using this handy tool here.

Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up to date pricing and fee information.

Using your debit card overseas - are there any limits?

Both Lloyds Bank and Wise let you use your debit card overseas, for spending and cash withdrawals.

But are there any strings attached? Here’s an overview of limits for international or foreign currency card transactions for both providers.

	Lloyds limits³	Wise limits⁴
Overseas cash withdrawals	£500 a day (the same as your GBP cash withdrawal limit)	Max £1,500 a day No fees for first £100 a month
Overseas card purchases	Not provided - check with the bank	Max. £10,000 a day
Contactless card payments	Max. £100 per transaction	Max. £500 per transaction

Lloyds Bank vs. Wise - security

When choosing a new bank or account provider, security will always be a top priority. So just how safe is your money and personal data when you use Lloyds Bank or Wise?

Lloyds Bank security features and technology

As you’d expect from a leading UK bank, Lloyds uses sophisticated security measures to protect your account. This includes:⁵

• Real-time security checks
• Dedicated Fraud Team
• Biometric login to safeguard access to your account
• Automated calls and SMS codes to confirm actions such as setting up a new payee
• Bank name displays, so you can check that you’re sending to the right account.
• Robust data protection policies

Lloyds is also FCA regulated, and offers protection of up to £85,000 per person as part of the Financial Services Compensation Scheme (FSCS).

Wise security features and technology

Now, what about Wise? You’ll be pleased to know that Wise is a safe and trusted provider of account, money and international transfer services.

It does this through holding your money separate from its own finances, and only with trusted commercial banks along with investments in secure liquid assets (such as government bonds). Read more about how safeguarding works here.

Wise also uses advanced security technology and processes to keep your money safe. This includes the following:

• Real-time notifications for card spending
• Two-factor authentication to protect your account and transactions
  Regular vulnerability scans and other security scans carried out by independent auditors
• Strong data protection policies
• Industry standard HTTPS encryption to protect transactions and communications.

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So which is better - Lloyds Bank or Wise?

It’s completely up to you which provider you choose for your new account, as it all depends on what you’re looking for.

Lloyds is a trusted and reliable option, with a wide range of different current accounts and other financial products to choose from. It’s a solid option for everyday banking, especially if you prefer to go with a big-name high street bank.

The only drawback is the expense involved with international transactions, as Lloyds charges quite a lot of fees for spending abroad or making/receiving global transfers.

Open a Wise Account Today 🚀

But if you travel a lot or have family overseas, you’re going to need a cheaper option. And this is where Wise comes into its own.

Wise is perfect for people who live an international life, whether studying or working abroad, or with family spread across the world.

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Sources used:

1. Lloyds Bank - Current accounts
2. Lloyds Bank - Classic Account
3. Lloyds Bank - Personal Banking Terms and Conditions
4. Wise - Help - What are my spending limits?

Sources last checked on date: 03-Aug-2023