The Wise Account: A Comprehensive Guide to International Money Transfers and Multi-Currency Management
As a digital nomad and content creator, I have experienced firsthand the challenges of dealing with multiple foreign currencies. My company is registered in Singapore, and many of my clients are based there as well. However, some of these clients may pay me in US dollars instead of local Singapore dollars, while others may need to receive payments from contractors who work in their home currency. This has led me to explore various options for managing foreign currencies and transferring money internationally.
That's why I'm excited to share with you my experience with Wise, a financial services provider that offers a range of features and benefits for international money transfers and multi-currency management. As some of you may know, Wise was previously known as TransferWise and rebranded as Wise in 2021. But I'll delve into the details of what makes Wise so unique and how it can benefit your financial needs.
One of the main features that sets Wise apart from traditional banks is its commitment to providing transparent and competitive exchange rates. When you send money internationally with Wise, you get the real exchange rate, which means no hidden fees or markup. This is particularly important for cross-border transactions, where fees and FX spreads can add up quickly. According to Wise, sending money varies by currency, starting from 0.33%, which is a very low cost compared to traditional banks.
Another benefit of using Wise is the ability to hold and manage multiple currencies in one account. This is especially useful for clients who need to receive payments in different currencies or for those who want to facilitate USD payments or receipts. There are two types of balances that you can open with Wise: normal balance accounts, which allow you to send, receive, and spend money, and jars, which are essentially savings pots where you can set aside money without being able to spend it.
One of the most exciting features of Wise is its ability to provide full account details like ACH and wire routing numbers, account numbers, and bank addresses. This means that your clients can send foreign currency to your Wise account with ease, and you can convert currency using a simple online process. As I'll demonstrate in this article, Wise makes it easy to manage multiple currencies and transfer money internationally.
To really use Wise, you need to set up an account and familiarize yourself with its features. Once you've done that, you'll have access to a default balance for your home currency, which can be set up based on the local regulations in Singapore. From there, you can open additional currency balances to facilitate USD payments or receipts, or simply to save money separately from your main account.
In terms of large transfers, Wise is still a good option. For example, if I need to send $100,000 USD and convert it from Singapore dollars at a fee of 0.26%, I can get slightly above $100,000 USD as of the recording date. This is particularly useful for scenarios like property purchase when dealing in local currency, early inheritance where dependents may be living overseas, or stock options when exercising them and converting to your home currency.
Overall, Wise offers a comprehensive solution for managing multiple currencies and transferring money internationally. Its commitment to transparent exchange rates, competitive fees, and innovative features like full account details make it an attractive option for individuals and businesses alike. As I'll demonstrate in this article, Wise is easy to use and provides step-by-step instructions for sending and receiving money internationally.
In conclusion, Wise is a financial services provider that offers a range of benefits and features for international money transfers and multi-currency management. Its commitment to transparent exchange rates, competitive fees, and innovative features like full account details make it an attractive option for individuals and businesses alike. Whether you're dealing with multiple currencies, facilitating USD payments or receipts, or simply wanting to save money separately from your main account, Wise is definitely worth exploring.
"WEBVTTKind: captionsLanguage: enSo some of you have asked me about Wise, which has historically been known as an FX service provider. But let me say that Wise is so much more than that now. There is a Wise card that gives you the most favorable exchange rate when you spend in foreign currency, and that allows you to withdraw cash from overseas ATMs. Wise also has interest and stocks to make your money work harder for potentially higher returns.And also, if you want to join the best community of close to 17,000 members discussing personal finance, how to save your money, and earn more money, then join us at HoneyMoneySG.So, as a three-part series, I will cover the Wise account today and focus on the send and money management features, and subsequently go more in-depth into other features in the next two episodes. Now, if you do not have a Wise account yet, you can use my exclusive link right here and get fee-free transfers up to your first 500 Great British Pounds. And if the name Wise sounds familiar to you, it’s because they were previously known as TransferWise and rebranded as Wise since 2021.But I guess the main question of today is, why should we even talk about Wise? Maybe let's give a little bit of context about my background. As a content creator and digital nomad myself, one of my main issues is dealing with multiple foreign currencies. You see, I have registered a company in Singapore, and most of my clients are based in Singapore. But for various reasons, some of these clients may pay in US dollars instead of the local Singapore dollars. Sometimes I also have to pay my contractors for outsourced services, for example, video editing, in their home currency.So if this kind of context doesn't apply to you, then how about this? If you are a frequent traveler, whether for work or leisure, or you are just a student based overseas, sometimes you do need to deal with foreign currency, like sending money back to your home or receiving money from your family. You will want to get the best exchange rates so that you don't lose out on the cost too much.Then some of you may have this idea: isn’t it that traditional banks already offer these kinds of services, like foreign currency remittance? Now, the problem with traditional banks is that they do charge a markup on the foreign currency, either through fees or FX spread. And I'm sure you know that cross-border transactions will incur an even higher transfer fee, which can accumulate to quite a high cost. You may also know that some of these remittance services have physical stores, and they do have long queues during the weekends when everybody wants to send money back home. And maybe you are worried about security as well when you're carrying large amounts of cash.So here is where Wise will come in. The main features are for international money transfers and managing multi-currency accounts. You see, the key feature of Wise is that for the multi-currency account, it has full account details where you can send and receive money. You can also hold and convert money for over 40 currencies worldwide. And Wise will use the real exchange rate, which is the mid-market rate, with no hidden fees because all fees are shown transparently before any confirmation.So all these features sound really good, but what about the pricing? Registration for a Wise account is free, and there are no maintenance charges. Sending money varies by currency, starting from 0.33%, which is quite a low cost. Then, for the card-related and investment charges, I will cover them in subsequent videos when I'm focusing on these topics. Even when you open and hold foreign currencies in their multi-currency wallets, the account details are free. For receiving, most local and SWIFT payments are free, except for US dollar wire payments and Canadian dollar SWIFT payments, which have a fixed fee per payment.If you want to do large transfers, for example, more than $100,000 Singapore dollars, Wise is still a good option. For example, if I need $100,000 USD, I could just convert $131,400 Singapore dollars at a fee of 0.26% and get slightly above $100,000 USD as of the recording date. Compared to other services, the same Singapore dollar amount would convert to a smaller amount of US dollars after fees. Large transfers are especially useful for three scenarios: firstly, property purchase when you are buying or selling overseas property and dealing in their local currency; secondly, early inheritance where your dependents may be living overseas; and lastly, stock options when you decide to exercise them and convert to your home currency.So how to really use Wise? I will use my own account for a live demonstration and show you step by step. After setting up your account, you have a default balance for your home currency—for me, it is Singapore dollars. Next, you can set up another currency balance, like US dollars, to facilitate USD payments or receipts. There are two kinds of balances that you can open: firstly, the normal balance account where you can send, receive, and spend money. According to local Singapore regulations, you can hold up to $20,000 Singapore dollars at the end of each day and send or spend up to $100,000 Singapore dollars from your balances within a fixed 12-month window. Money held in interest or stocks is not subject to these limits.The other type is jars. Jars are for money you want to set aside and keep separate from your balances. You can spend it with your debit card or use it to pay direct debits, but you cannot send the money from it like you would from a balance. So it's basically like a money-saving pot where you will not want to touch it unnecessarily, so you can build your savings. And if you have a personal account with an address in Singapore, you can only use jars when you invest in assets like Wise Interest.Here is the thing about Wise balances: even in foreign currency accounts, they come with full account details like ACH and wire routing numbers, account numbers, and bank addresses. This means that your clients can send you foreign currency, like US dollars, to your Wise account. To convert currency, click \"Convert\" from your selected currency, for example, $100 Singapore dollars to US dollars. Wise uses the mid-market exchange rate with a small fee, and that would be $0.28 Singapore dollars or 0.28% for the SGD to USD pair, and it varies with different currencies. You can also send to other Wise users or bank accounts in different currencies, and you can also request money via QR code or link so the money can be sent to your Wise account directly.For my own example, on 21st December 2023, I sent over 4,000 Philippine pesos to my video editor located in the Philippines, and the remittance was completed within 15 minutes since he was a Wise user as well. So you see, it really just takes 15 minutes and not up to three workdays like some banks for foreign remittance transfers. So I guess the best scenario will be if all your suppliers and clients are on board with Wise so that payments can be facilitated instantly and smoothly, especially for cross-border payments in foreign currency.Local regulation: Wise Asia-Pacific Pte. Ltd. is licensed by the Monetary Authority of Singapore as 1) a Major Payment Institution under the Payment Services Act 2019 and 2) has a Capital Market Services License under the Securities and Futures Act 2001 for dealing in capital market products. So you can be assured that they are well regulated by the Singapore government body.To summarize quickly, there are four benefits of using Wise:Low and transparent fees—because all the fees are shown transparently before you click confirm. Real exchange rates—Wise uses mid-market rates with no markups, which means what you see on Google’s spot rate is what you get. There’s no foreign currency markup unlike with other products.Easy to use—especially for international transactions, like my clients or suppliers sending payments to each other. Multi-currency capabilities—allowing you to send money to over 160 countries and hold over 40 currencies.Wise claims that right now, 45% of transfers are instant, whereas with traditional banks or other FX providers, it may take anywhere from a few hours to three workdays. So if you're curious whether Wise is suitable for you, here is the target audience: travelers, freelancers, digital nomads, international students, expats, and even small business owners—mainly because of the multi-currency capabilities and fast transfer time. Wise offers low fees and great convenience for sending and receiving funds. The good news is that the account and digital card are free anyway, so you can just sign up using my link to get a Wise account, ready for future situations where you might need it.Remember to use my link to sign up so that you can get fee-free transfers up to your first £500. Thank you to Wise for sponsoring this video, and if you want to learn about other Wise features like the Wise card and even Wise investments, then stay tuned and subscribe because I will cover them in subsequent videos.\n"
