Wise (LON: WISE), the global tech company building the best way to move money around the world, has launched a new product that allows customers in the UK to earn in line with local interest rates.
This sets a whole new standard for holding money for people and businesses. In their Wise Account, they are now able to hold their money in government backed assets that follow the respective interest rate offered by the Bank of England, the US Federal Reserve, and the European Central Bank.
The new product means customers will no longer have to give money to their bank for free in the hope they lend it responsibly. With Wise Assets, and now “Interest” – when customer money generates earnings, they’ll keep the return. For UK customers, Wise is introducing the “Interest” asset on GBP, USD, and EUR balances.
Currently the annual variable yields are:*
- 3.29% on USD balances;
- 2.52% on GBP balances;
- 0.88% on EUR balances;
This is done using a Public Debt Money Market Fund (MMF), a type of fund that invests in short-term assets issued and guaranteed by governments.
99.99% of money held will be immediately available to spend and send, and customers can move their money into “Interest” in just a few taps within their Wise app. In line with its international purpose and mission, Wise plans to roll out access to “Interest” to customers across Europe, after having secured its
investment licence in Estonia earlier this year.
While traditional banks often take an unspecified cut of earnings made from lending your money, Wise is fully transparent about the cost of “Interest”. The overall cost of the product is 0.29% including the fund manager costs. This is included in the annual variable yield figure that is shown to customers. There will be no transaction cost for moving money in and out of “Interest”.
Gabriel May, Senior Expansion Lead for Assets at Wise: “At Wise, we’re making financial lives easier for international people and businesses. That was our goal when we launched the Wise Account, and now we’re improving that by giving people the option to grow the money they hold with us. With traditional banks, you often can’t control how they lend your money, and you don’t receive the full amount earned from the investments they make. We’re building something better. “Interest” is designed to be more rewarding, and more transparent. The Wise Account is setting a new standard for holding money, giving people and businesses more options outside of traditional accounts.
While these are currently available in the UK only, we’re always looking to bring the best experience to our customers all over the world. This brings us another step closer to replacing old-school international banking.”
“Interest” is offered through Wise Assets. Growth not guaranteed. Capital at risk.
