Transferwise 'bank accounts'

Checkingout

SOmeone has recommended I open an account so that I can accept and pay monies in different currencies with ease.  Can someone explain what it is and how as it seems that it is not a bank account as we know it and is therefore under other rules and regulations.  I'm also interested in what insurance cover we get, if any, because I understand these types of accounts are not covered by UK FCA etc rules.  Is it the same company as Wise?  Thank you. 

Eyeful

As I understand it:

(a) Transferwise.is now called Wise
https://wise.com/gb/blog/world-meet-wise

 (b) It is an Electronic money institution (EMI), so is not covered by the FSCS.

• Electronic money institutions (EMIs): Electronic money, also known as 'e-money', is stored electronically, usually in an online wallet or on a prepaid card. You can use it to make payments for goods and services. Issuing e-money is a regulated activity in the UK.

(c) As for "safety" I suggest you read their following information and decide for yourself.

  https://wise.com/help/articles/2736041/is-wise-safe

https://wise.com/help/articles/2949821/is-it-safe-to-keep-money-in-my-wise-account?origin=related-article-2736041


Note: If someone is now calling saying to open a Transferwise account (or even a Wise account) I would check to make sure you are not speaking to a scammer.

Checkingout

Thank you. That is much clearer.  I am still confused that I see talk of scammers linked to them. 

PRAISETHESUN

Wise = TransferWise

As above, your money is held as e-money and doesn't have the same protections as a FSCS protected bank.

Checkingout said:

Thank you. That is much clearer.  I am still confused that I see talk of scammers linked to them. 

@Eyeful is just making sure that the reason you want to open a Wise account is because you've done your own research and decided it will suit your needs, not because you got a cold call (probably from a scammer) where someone has asked you to open an account. There's no more of a link to scammers than any other high street bank if that's what you're worried about.

Eyeful

I do not know how you found out about Wise or who it was that suggested them to you.They have no FSCS protection. Just be careful who you are dealing with.Make sure you are dealing with Wise and not someone claiming to be Wise. I have no personal experience of them.

I find it strange that on Trustpilot, all the reviews seem to be within the last 24 hours. I would suggest googling "Wise" and see what turns up. For instance when I did it just now I found the following.I suggest you read through them. It may or may not help you.

https://www.reviewopedia.com/transferwise-reviews

 https://transumo.com/wise-transfer/

https://www.scamdoc.com/view/218650

https://www.scam-detector.com/validator/wise-com-review/

Daliah

Checkingout said:

Thank you. That is much clearer.  I am still confused that I see talk of scammers linked to them. 

Sammers try on everything. It's fairly well known that they target people with 'proper' bank accounts, so would you stop having one or more current accounts with any of the banks? 

What do you still find confusing about Wise?

What would you like to use Wise for? You say you could "accept and pay monies in different currencies with ease". This sounds like a business activity, so you would need a business account, even if you are a sole trader.

Whether you need a business or a personal account or both, be prepared to provide details about the source, and the destination, of your funds. This is not specific to Wise - all financial institutions have to comply with anti-money laundering legislation and will randomly require such details.

robatwork

I haven't got a multi currency account with Wise. 

However I have been using them for many years to transfer money abroad, and continue to monthly.

Some of the transfers have been in multiple 10s of thousands. 

Never had a problem and their rates have always been competitive. Nobody asked me to use them though, I just used recommendations from this very forum and elsewhere to decide.