From XU Magazine, 
Online News

Sitting on your Wise money? It’s time to get growing

January 9, 2023

This article originated from the Xero blog. The XU Hub is an independent news and media platform - for Xero users, by Xero users. Any content, imagery and associated links below are directly from Xero and not produced by the XU Hub.
You can find the original post here:

As more of you hold money in Wise, we’re bringing you the benefit of interest rates, so you get more out of your money.

Following the launch of stocks last year, we’ve added interest-earning assets for customers in the UK. Now you’re able to grow your GBP, EUR, and USD balances with Interest.

As of 14th December 2022 this is the variable annual yield after all fees have been deducted. Variable annual yield is a projected return based on the past 30 day performance of this asset.

For the latest fees and interest rates please check your account.

Offered through Wise Assets. Growth not guaranteed. Capital at risk

How does it work

You have some money on your Wise account. You may be using it for everyday shopping or keeping it there for your next transfer. When you switch your balance to Interest, your money will be moved to a fund that holds government guaranteed assets such as bonds. You can continue to spend & send as before, yet you’ll be earning interest and enjoying the 100% government backing of your assets.

For now, the Interest asset is available for three currencies — GBP, EUR and USD through funds managed by BlackRock. The yield from each fund tracks the interest rate set by the central bank of that currency. For example, the assets in the USD fund pay interest benchmarked to the interest rate set by the US Federal Reserve. This means that when the US interest rate is high, the value of your USD balance grows faster.

What are the risks

These funds hold assets that are ultimately guaranteed by the governments. Even in the unlikely event of Wise or the fund manager BlackRock failing, you will own the underlying government bonds. However, during periods of extreme volatility in the market for government assets, access to your money may be temporarily restricted in order to preserve the value of your holdings.

How much it costs

There’s no such thing as a free bank account. Whenever you put your money in a bank they lend it out at a profit and only pass a small part of the earnings they have made from your money back to you.

At Wise we do things differently. We’re transparent about the fees that we charge. For the interest asset you will pay a total yearly fee of 0.29%. This fee has two parts.

  1. Wise service fee. This is a yearly fee of 0.19%. It is charged monthly straight to your Wise balance. For example, if your balance was 1,000 GBP for a year we would charge you 0.16 GBP each month.
  2. The fund manager fee. This is a yearly fee of 0.10% charged by BlackRock, the fund manager. They include it in the value of the fund, so you’ll never see it charged as a separate fee.

Variable annual yield is a projected return based on the past 30 day performance of this asset. Accurate as of 14th December 2022.

We always show you the variable interest rate after all fees have been deducted. There are no buying and selling costs, so you’ll never have to have to pay to put money in the fund or take it out. Our mission is to make money work without borders and lower the costs of using it.

How to get started

If you already have a GBP, USD or EUR balance or jar that you’d like to upgrade to interest then the icons below take you to the app.

Alternatively log into your account or open your app and tap the ‘Asset type’ icon on any of your balances or jars. You’ll get the option to upgrade from cash to interest — or another asset like stocks.

What's next?

We’ll be working to launch the interest-earning assets to other countries outside the UK and enable more currencies. Read on about why we built interest assets.

Get started!

Wise Assets is a trading name of TINV Ltd, a Wise group subsidiary created to carry out investment activities and operate Assets. TINV Ltd is authorised and regulated by the Financial Conduct Authority (FCA) with FCA number 839689.

Why leave it there?

To find more about Wise

Straight to your inbox

Subscribe to our newsletter for updates as they happen
We hate spam too. We NEVER sell our mailing list.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.