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Interest on Wise Account and FDIC Insurance

Interest on Wise Account and FDIC Insurance

Old Feb 4th 2024, 7:09 pm
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Default Interest on Wise Account and FDIC Insurance

You need to live in the US but it seems Wise is now paying interest, and via Chase FDIC cover.

https://wise.com/help/articles/4D0d0...live-in-the-us

As far as I can tell my UK "bank account" with Wise is covered. Be interested and what others make of this.
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Old Feb 5th 2024, 1:57 pm
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Default Re: Interest on Wise Account and FDIC Insurance

Will start morbid.... once my family pass away in the UK and my need for a UK bank account goes to zero, I will jump on this.

Sorry that was dark, but that is literally why I keep a checking account open over there.
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Old Feb 5th 2024, 7:52 pm
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Default Re: Interest on Wise Account and FDIC Insurance

Originally Posted by lansbury
You need to live in the US but it seems Wise is now paying interest, and via Chase FDIC cover.

https://wise.com/help/articles/4D0d0...live-in-the-us

As far as I can tell my UK "bank account" with Wise is covered. Be interested and what others make of this.
Originally Posted by lansbury
You need to live in the US but it seems Wise is now paying interest, and via Chase FDIC cover.

https://wise.com/help/articles/4D0d0...live-in-the-us

As far as I can tell my UK "bank account" with Wise is covered. Be interested and what others make of this.
I think I posted about this at the time...Wise first offered an interest bearing opt-in feature around May (?) of 2023.
At that time the interest rate they offered was 3.22APY (which was highly competitive back then)
Currently it's 4.85% APY (great rate now)
For those whose Wise account documentation show them to reside elsewhere...this US account is not available because your USD is not held in a US bank.

To answer your question Lansbury...I think it's a ***great*** feature
Interest is credited monthly, on the 1st, like clockwork.
They send an email notification immediately
And issue a 1099-R for taxable interest reporting to IRS

.... which leads to my question:
.... Should one submit an F-BAR for the Wise GBP Account (from which the USD funds were transferred) ?

Last edited by MMcD; Feb 5th 2024 at 8:03 pm.
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Old Feb 5th 2024, 8:15 pm
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Default Re: Interest on Wise Account and FDIC Insurance

Originally Posted by MMcD
I think I posted about this at the time...Wise first offered an interest bearing opt-in feature around May (?) of 2023.
At that time the interest rate they offered was 3.22APY (which was highly competitive back then)
Currently it's 4.85% APY (great rate now)
For those whose Wise account documentation show them to reside elsewhere...this US account is not available because your USD is not held in a US bank.

To answer your question Lansbury...I think it's a ***great*** feature
Interest is credited monthly, on the 1st, like clockwork.
They send an email notification immediately
And issue a 1099-R for taxable interest reporting to IRS

.... which leads to my question:
.... Should one submit an F-BAR for the Wise GBP Account (from which the USD funds were transferred) ?
Yes, I believe you should put your Wise GBP account on your FBAR as it is a foreign bank with UK sort code. It also has an address in London.
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Old Feb 5th 2024, 8:21 pm
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Default Re: Interest on Wise Account and FDIC Insurance

Originally Posted by durham_lad
Yes, I believe you should put your Wise GBP account on your FBAR as it is a foreign bank with UK sort code. It also has an address in London.
Thanks for your speedy reply
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Old Feb 5th 2024, 9:08 pm
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Default Re: Interest on Wise Account and FDIC Insurance

Originally Posted by MMcD
I think I posted about this at the time...Wise first offered an interest bearing opt-in feature around May (?) of 2023.
At that time the interest rate they offered was 3.22APY (which was highly competitive back then)
Currently it's 4.85% APY (great rate now)
For those whose Wise account documentation show them to reside elsewhere...this US account is not available because your USD is not held in a US bank.

To answer your question Lansbury...I think it's a ***great*** feature
Interest is credited monthly, on the 1st, like clockwork.
They send an email notification immediately
And issue a 1099-R for taxable interest reporting to IRS

.... which leads to my question:
.... Should one submit an F-BAR for the Wise GBP Account (from which the USD funds were transferred) ?
I must have missed you earlier post about this. Saw it when an info box popped up when using my Wise account yesterday. The interest rate now is still 3.22% for UK pounds, but that is much better than NatWest offer. I clicked on the offer and registered my UK pounds account and was accepted for the interest add on.

Originally Posted by durham_lad
Yes, I believe you should put your Wise GBP account on your FBAR as it is a foreign bank with UK sort code. It also has an address in London.
Now this was the point which raised a flag with me. My Wise account has my US address. The UK pound account has a UK sort code and account number, and an address for Wise in London. Reading the info on then transferwise when I opened the account I believed all such money was actually held in a Barclays Bank account in London belonging to Wise (transferwise).

If that is the case is it in fact covered by the FDIC insurance. As I was accepted to add on the interest and FDIC offer it would appear the money is in a Chase account in the US. Still as I have been doing I'll continue to list it on FBAR.
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Old Feb 6th 2024, 6:18 pm
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Default Re: Interest on Wise Account and FDIC Insurance

Decided to give it a go, and transferred money from my NatWest account to Wise to earn interest. Big mistake. Found an email from NatWest this morning about a fraudulent transaction on my account, and online access to my account had been suspended.

45 minutes on the phone speaking to 5 different people in NatWest fraud prevention and they finally decide to allow the payment to Wise to go through. What they haven't done, over 2 hours later, is restore online access to my account.
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Old Feb 6th 2024, 6:21 pm
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Default Re: Interest on Wise Account and FDIC Insurance

Originally Posted by lansbury
Decided to give it a go, and transferred money from my NatWest account to Wise to earn interest. Big mistake. Found an email from NatWest this morning about a fraudulent transaction on my account, and online access to my account had been suspended.

45 minutes on the phone speaking to 5 different people in NatWest fraud prevention and they finally decide to allow the payment to Wise to go through. What they haven't done, over 2 hours later, is restore online access to my account.
That really sucks, but thanks for sharing your experience.

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Old Feb 8th 2024, 1:13 am
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Default Re: Interest on Wise Account and FDIC Insurance

Originally Posted by MMcD
I think I posted about this at the time...Wise first offered an interest bearing opt-in feature around May (?) of 2023.
At that time the interest rate they offered was 3.22APY (which was highly competitive back then)
Currently it's 4.85% APY (great rate now)
For those whose Wise account documentation show them to reside elsewhere...this US account is not available because your USD is not held in a US bank.

To answer your question Lansbury...I think it's a ***great*** feature
Interest is credited monthly, on the 1st, like clockwork.
They send an email notification immediately
And issue a 1099-R for taxable interest reporting to IRS

.... which leads to my question:
.... Should one submit an F-BAR for the Wise GBP Account (from which the USD funds were transferred) ?
I was wondering the same question and have decided not to include on FBAR - as the interest in dollar accounts is better, I transfer to dollars and thus my sterling balance falls below the $10000 level always. On the dollar account, they send a 1099int and the address of wise on the account is in New York so I report the interest as I would any us bank.
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Old Feb 8th 2024, 7:56 am
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Default Re: Interest on Wise Account and FDIC Insurance

Originally Posted by TerryGoX
I was wondering the same question and have decided not to include on FBAR - as the interest in dollar accounts is better, I transfer to dollars and thus my sterling balance falls below the $10000 level always. On the dollar account, they send a 1099int and the address of wise on the account is in New York so I report the interest as I would any us bank.
As always you only need to complete an FBAR if the sum of the largest balances during the year exceeds $10,000, but using Treasury arithmetic. If you have $6,000 in a UK account and transfer it to a savings account you still only have $6,000 but you exceed the FBAR limit and have to report all foreign accounts.
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Old Feb 8th 2024, 1:03 pm
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Default Re: Interest on Wise Account and FDIC Insurance

Originally Posted by durham_lad
As always you only need to complete an FBAR if the sum of the largest balances during the year exceeds $10,000, but using Treasury arithmetic. If you have $6,000 in a UK account and transfer it to a savings account you still only have $6,000 but you exceed the FBAR limit and have to report all foreign accounts.
But the question is on dollar accounts with Wise. The account has a US bank account number, the bank lists a New York address and they issue 1098INT so to me that looks exactly like a US bank account. Of course the pound account needs to be listed on FBAR and on 1040 but only if balance exceeds 10k dollar equivalent
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Old Feb 8th 2024, 1:10 pm
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Default Re: Interest on Wise Account and FDIC Insurance

Originally Posted by TerryGoX
But the question is on dollar accounts with Wise. The account has a US bank account number, the bank lists a New York address and they issue 1098INT so to me that looks exactly like a US bank account. Of course the pound account needs to be listed on FBAR and on 1040 but only if balance exceeds 10k dollar equivalent

The question you answered above was, I thought, the post you quoted:
"Should one submit an F-BAR for the Wise GBP Account (from which the USD funds were transferred) ?"

If you have a Wise GBP account then it will have a sort code and account number to a Wise bank in London in which case it is a foreign bank but you don't need list any Wise USD accounts because they are not foreign banks. I think we are very much in agreement here, just crossed wires on wording.
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