How does it work?
Since Wise isn’t a bank, we keep our customers’ money safe by storing funds with reputable banks. These banks then pay Wise interest on those funds for keeping the money with them.
For eligible customers that opt in, we take the interest earned from our program bank(s) on your USD funds, use a small portion to cover our operating expenses, and pass the rest along to you.
Plus, by opting in to earn interest on your USD balance, you'll benefit from the added security of up to $250,000 in passthrough FDIC insurance on your eligible Balance(s) from our Program Bank. (See Program Agreement to learn more)*. See Disclaimer below.
Who is eligible?
All new and existing US customers with a SSN/EIN will be eligible to opt in (SSN/EIN verification will be required during opt in, unless already verified). We need this to verify your tax information so that we can report your taxes correctly. Please note this feature is not available to residents of New York and Alaska at this time.
Select customers can also earn interest on their EUR and GBP balances. Interest is calculated based on the USD equivalent of your EUR and GBP balance. This is currently a beta program and we’ll inform you once it’s available to everyone. We’re not able to add anyone else to the beta at this time.
Note: For customers opted in to receive interest on EUR and GBP balances, the FDIC passthrough insurance provided by our program bank is for up to $250,000 USD in total for your USD, EUR and GBP combined balance amounts. For example, if you have 200,000 USD and 100,000 EUR, then only the equivalent of $250,000 is FDIC insured.
I don’t live in the US but my business is located in the US, am I eligible?
Yes, if your business is registered in the US and has an EIN, it would be eligible to add the interest feature to its Wise Account. We'll verify your EIN when you opt in, unless it's already been verified.
Your personal account wouldn't be eligible as your address isn't located in the US.
I’m a US citizen but my business is located abroad, am I eligible?
Yes, if your personal account has a US address and you have a SSN, you are eligible to add the interest feature. We'll verify your SSN when you opt in, unless it's already been verified.
Your business account wouldn't be eligible, as it is not based in the US.
Can I still send and spend money from my Wise Account?
Yes! You can still send, spend, receive and convert money at your discretion.
What is the interest rate for this feature?
The interest rate is currently 4.33% APY for USD. Interest rates are variable and determined by our program bank(s), so the interest rate is subject to change. (See Program Agreement for more details)
For those with EUR and GBP balances opted into this feature, the interest rates are:
EUR: 2.00% APY
GBP: 3.11 APY
However, the interest you earn is based on the USD equivalent of the EUR or GBP that you hold. For example, if 100 EUR = 110 USD, then you’ll receive 2.00% APY based on 110 USD which amounts to an interest payment of 2.20 USD.
Interest will accrue daily and be paid monthly.
When will I receive interest into my Wise Account?
Any interest you earn this month will be paid at the beginning of the following month, added directly to your USD balance or your EUR/GBP balance if you are opted in to that feature.
How do I opt in?
After you’ve opened a multi-currency account with Wise, navigate to your USD balance and select “earn interest.” Wise will need to verify your SSN or EIN before you can start using this feature.
Select customers can navigate to your EUR and GBP balances and select “earn interest” from our website or Android. We're working on releasing this for our iOS app soon.
How do I opt out?
You can opt out at any time through your Wise Account. Go to your USD Balance and choose “Opt out.” If you decide to opt out, you’ll still earn interest for the month until the day you cancel. Any interest owed prior to you opting out will still be paid to your USD Balance.
Select customers can go to your EUR and GBP balances and choose “Opt out.” Any interest owed prior to you opting out will still be paid to your EUR/GBP balance.
How does Wise calculate interest?
We calculate interest daily based on your minimum daily balance. This means that any money that you add to your USD balance on a given day will start earning interest on the next working day.
For EUR and GBP balances that are opted into the interest feature, balances will be converted and held as the equivalent in USD. Interest will then be accrued on the USD equivalent funds. The following month, when accrued interest is paid out, these funds will be converted and paid into the respective EUR and/or GBP currency balances.
For example, if you have 100 EUR in your balance and have opted in for interest, we’ll convert that 100 EUR into USD to calculate the interest. We’ll then sum up the amount of interest you earned in USD during the current month and convert it back to EUR when we pay you the interest at the beginning of next month.
I have other currencies in my Wise Account, will those earn interest too?
Interest is only earned on your USD balance, unless you're opted in to the EUR and GBP interest program.
Can I earn interest on money in my jars?
Today, customers can only earn interest on USD in their main USD balance.
Are there any fees?
There are no fees for opting into, or using this feature. We do however take a portion of the interest earned to cover our operating expenses.
Why didn’t Wise offer this before?
With the positive interest rates market, we can now cover our costs with a portion of the interest we earn through our program bank(s). That means the rest of the interest we earn can be passed along to you!
What if I decide to close my Wise Account?
You’ll still earn interest up until the day you close your account. Rather than receiving the interest payment into your USD balance or EUR/GBP balance if opted in to that feature, we’ll send the money to your linked card or bank account.
What does this mean for my taxes?
For most users, interest earned on the USD balance in their Wise Account will be taxed as ordinary income in the year it is received. For all customers who earn more than $10.00 in interest, Wise will issue you a Form 1099-INT annually.
Wise is not a tax advisor, and you should consult with a tax advisor to determine the tax consequences of earning interest on the USD Balance in your Wise Account.
What happens if I relocate outside of the US after opting in?
If you relocate outside of the US, your Wise Account will no longer be eligible for this feature. You’ll receive any interest accrued during the month you move, up until the date of your address change. We pay this out at the beginning of the following month. The same applies if you relocate your business outside the US. If you a relocate to the UK, EEA, or Singapore, you may be eligible for similar features, called Assets.
How is Wise able to offer this feature under its current licenses?
Wise is not a licensed brokerage or bank in the United States, so we can’t offer any securities, investments, or traditional savings accounts. Instead, the interest you’re earning, along with the FDIC insurance that comes with it, is passed through from our program bank(s).
*Disclaimer: The current Program Bank is JPMorgan Chase Bank, N.A., see Appendix 1 of the Program Agreement for the most updated list of Program Bank(s). Eligible customers must opt in to the interest feature. Participants will have the balance of their USD funds held in their Wise Account “swept” into a Federal Deposit Insurance Corporation (“FDIC”) insured interest-bearing account at one or more participating banks (each, a “Program Bank”) that will hold and pay interest on the deposit funds. For more information on FDIC insurance coverage, please visit www.FDIC.gov. Customers are responsible for monitoring their total assets at each of the Program Bank(s) to determine the extent of available FDIC insurance coverage in accordance with FDIC rules. The Program is not intended to be a long-term investment option, checking or savings account, investment contract or security.