TransferWise bank account and money transfer services – Must read guide
In this TransferWise bank account and money transfer services guide we take a deep dive into all things TransferWise.
An account lets you hold money in over 50 currencies, gives you the ability to send money instantly all over the world and provides account details for GBP, EUR, AUD*, NZD, USD, CAD, HUF, RON, TRY, and SGD (with more currencies in the pipeline), essentially giving you the functionality of multiple bank accounts in multiple jurisdictions!
Anybody who deals with international payments on any kind of regular basis would do well to consider TransferWise.
Account basics
TransferWise gives you the option to get bank account details for British pounds, Canadian dollars, Euros, Hungarian forints, New Zealand dollars, Romanian leu (only available for residents in the EEA and Switzerland), Singapore dollars, Turkish Lira, and US dollars.
So for example, with British pounds they give you an account number and sort code just like you’d get with any traditional UK bank account. As a result, you can receive and make payments, convert currencies and set up direct debits in just a couple of clicks!
How can I set up an account?
You open a balance in the currency you want by sending about £20 to your account, go through a quick ID check by taking a picture of your ID and recording a quick selfie video and then you are ready to go.
They say it can take up to a couple of hours for your ID check to be processed but in my experience its more like a few minutes.
How to send money
You don’t have to sign up for the bank facilities if you don’t want to. Many people just use TransferWise to send money. In fact, before you sign up for the banking services it makes sense to simply transfer some money to try out the platform.
You can do this easily by carrying out a few steps as follows:
- Sign up
- Say how much you want to transfer
- Choose the kind of transfer you are making
- Complete your details
- Let them know who you are sending the money to
- Check the details
- Choose the transfer type and how to pay
- Hey presto!
(Whenever I’ve sent money it has arrived in minutes).
How does money transfer work?
Anybody with experience of sending money abroad will probably be shocked the first time they use TransferWise.
Whereas with a bank it takes days, with TransferWise it takes seconds. Whereas with a bank it costs an arm and a leg, TransferWise it costs peanuts.
So how do they do it? Well, easy really they basically have bank accounts stacked with local currency all over the world. So when I think I’m sending some money to somebody in the US, in reality I’m just sending it to a UK bank account. Once the money is received in their UK bank account, the equivalent dollar amount (minus a tiny fee) is sent from their US bank account to the recipient.
It’s so simple, you can’t believe nobody thought of it before.
Are fees competitive?
TransferWise fees are really competitive with a capital C. In fact, I’d go so far as to say this is where their real power lies. They are usually cheaper than other money transfer services companies, and almost always a lot cheaper than traditional banks. The only exception to this rule would be if you were transferring very large amounts, where Atlantic Money usually have the edge.
Independent comparison site Monito’s research suggests TransferWise is on average 83% cheaper than the big four UK banks on major currency “routes”, but can be up to 90% cheaper in some cases.
And according to independent research agency Alderson Consulting, they are 19x cheaper than receiving and sending money overseas through PayPal.
The table below summarizes the fees.
Fee summary
What you can do | What it costs |
Account Opening | Free. |
Hold 50+ currencies | Free, except when you hold a large EUR balance or hold large amounts in Australia. |
Get bank details for more than 30 countries | Free – you have to add money to your account first for personal use. For business accounts – there’s a one time set up fee of between 16–30 GBP. |
Receive money using your bank details | Usually low or free. For example receiving GBP is free. |
Send money to someone else’s balances | Free. |
Add money | Usually low or free. For example receiving GBP is free. |
Convert between currencies in your account | You pay a small percentage and sometimes a fixed fee. These vary depending on which currencies you are converting and the amount you convert but as an example on the day I write this you’d pay a 20p fixed fee and 0.35% to convert £100 in to euros. |
Send or withdraw money | You pay a small percentage and sometimes a fixed fee. These vary depending on which currencies you are sending and the amount you send but as an example on the day I write this you’d pay a 20p fixed fee and 0.35% to send £100 in to euros. |
Pay with your Wise card | Typically between 0.24–3.69%. |
Is the company UK based?
They are headquartered in London and are a publicly traded company listed on the London Stock Exchange.
In fact, they were one of our first fintech unicorns.
Is there a bank card?
You can get a global debit card with that lets you spend money all over the world at the real exchange rate with low conversion fees and zero transaction fees.
If you have the currencies in your account you can pay with them for free.
Card key benefits
- It’s free to use with currencies you have in your account
- You get 2 free ATM withdrawals per month up to £200 then a small withdrawal fee is applied
- If you don’t have a particular currency in your card you are still only charged a small fee, typically 0.35-1%.
- Your money automatically convert at the real exchange rate
How can I get a card?
Just click on the Debit card tab of the app or website and you’ll get an option to order the card. In some cases you are asked to add money to your balances or pay a small fee.
Is there an app?
There’s a great app and online web platform, which are both super simple to use. You can transfer funds across the world and set up a bank account in minutes.
Is there a business account?
Yes, TrasnferWise offers a business account.
The business account lets you can pay invoices from global suppliers, receive money in 40 currencies, and integrate with accounting tools like Xero.
What is the borderless account?
The Borderless account is the old name for the multi-currency account i.e. the side of the account that provides you with bank facilities.
How is their customer service?
TransferWise have a great reputation for customer service.
They score 4.6 on trust pilot. That is an “excellent” score in anybody’s book, but particularly for a bank open to expats.
Who should open an account?
Anybody who sends or receives money internationally should open an account.
Wise Update
In 2021 TransferWise became Wise to acknowledge the fact that it was no longer just a money transfer services application.
TransferWise bank account – The bottom line
A TransferWise bank account lets you hold money in over 50 currencies, gives you the ability to send money instantly all over the world and provides you with account details for GBP, EUR, AUD*, NZD, USD, CAD, HUF, RON, TRY, and SGD (with more currencies in the pipeline), essentially giving you the functionality of multiple bank accounts across the globe!
Anybody who deals with international payments on any kind of regular basis would do well to consider opening an account.
If you aren’t sure whether or not their bank account is right for you, try their money sending services first. This will give you experience of using the platform without having to fully sign up for an account.