What is it?
For eligible customers that opt in, we take the interest earned from our program bank(s) on your funds, use a small portion to cover our operating expenses, and pass the rest along to you.
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.
Is my money safe?
By opting in to earn interest on your USD, EUR or GBP balances, you'll benefit from the added security of up to a total of $250,000 in passthrough FDIC insurance on your eligible balance(s) from our Program Bank. For example, if you have 200,000 USD and 100,000 EUR and opt in for interest for both currencies then only the equivalent of $250,000 is FDIC insured.
What's the interest rate for this feature?
The interest rates are currently:
4.85% APY for USD
2.29% APY for EUR
3.22% APY for GBP
Interest will accrue daily and be paid monthly. 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 EUR and GBP balances, 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 and the APY is 2.00%, then you'll receive interest based on 110 USD which amounts to 2.20 USD.
How does it work?
Can I still send and spend money from my Wise Account?
Yes! You can still send, spend, receive and convert money at your discretion.
I have other currencies in my Wise Account, will those earn interest too?
Interest is only earned on your USD, EUR, and GBP balances.
Can I earn interest on money in my jars?
No, you can only earn interest on your main USD, EUR, or GBP balances for now.
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, EUR, and GBP balances.
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, EUR, or GBP 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.
What if I decide to close my Wise Account?
You’ll still earn interest up until the day you close your account, but you can only receive interest payments to your balance while your account is still open.
What does this mean for my taxes?
For most users, interest earned 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 balances in your Wise Account.
How can I download my 1099-INT form for taxes?
If you earned $10 or more USD in the 2023 calendar year across your interest-earning balances we’ll provide you with a 1099-INT to comply with standard IRS tax procedures. To download your 1099:
Select your profile icon (top left in the app or top right on the website)
Select Statements and Reports
Select Interest income — annual tax statements
There’s an error on my 1099-INT form — how can I fix this?
If there’s an error on your 1099-INT such as an incorrect name or address contact us so we can get it sorted for you — just let us know what the correct detail should be. Please note that it should 100% match your IRS record.
The correction may take up to 15 business days. This is because we need to submit the changes to relevant tax authorities so a new form can be created.
I only earned interest in December, will I be getting a 1099-INT for the earned interest?
No, since the payout date is January 1, the accrued interest during December will be reported in the next tax year.
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.
Annual Percentage Yield (APY) - rates shown are true as of January 1, 2024. See Program Agreement for details.