Question for those that use Wise (Formerly TransferWise) - Interest question

[neilma]

Hey folks

I keep getting mails from Wise asking me if i want to convert my cash account to an interest account.

I usually keep < $1000 dollars in there used for when I travel to US or to europe and convert as required or use the credit card.

Currently they say they are paying 3.76% on funds held in dollars.

I am just wondering what the catch is? I am guessing if the fund they invest my cash in in plummets I will get a lower interest rate with the risk that it will then start to eat into my money held if it continues to drop. I am assuming that's the case otherwise it would be a no brainer right?

They say the funds are held in "Government backed Assets" - No further info than that that I can find so I am none the wiser.

Has anyone here decided to go for it? Pros/cons?

Thanks
Neil

[David_D]

https://wise.com/help/articles/29779...unts-with-wise

This says "Wise is regulated by the FCA in the UK " but I don't know what that means but pretty sure it doesn't automatically mean that you are covered by the FSCS up to £85,000.

If they're offering an interest bearing account then the value of your underlying $ shouldn't be at risk as it would be if they were investing in equities, etc..

EDIT: Not sure this clariies:

https://wise.com/help/articles/2736047/do-i-earn-interest-on-my-balances-or-jars?origin=search-interest

[neilma]

Thanks - I think that applies to just their standard account.

My question was more around this https://wise.com/help/articles/GDxZx...earch-interest and wondering if anyone else had chosen to do it or any pitfalls other than what I suspected in the original post?