What Wise is and what it does

Wise is a financial technology company that holds money in real bank accounts on your behalf, rather than issuing its own bank charter. When you open a Wise account, you get access to a debit card, a multi-currency wallet, and the ability to send money internationally at the real exchange rate — the rate banks use with each other, not a marked-up rate.

Wise is not a traditional bank. It does not take deposits the way a bank does, and your money is not insured under the Federal Deposit Insurance Corporation (FDIC). Instead, Wise holds customer funds in partner banks around the world. In the United States, Wise holds USD in accounts at partner banks that are FDIC-insured, but the insurance protects the partner bank's depositors, not Wise customers directly. If you keep money in other currencies in your Wise account, those balances are not FDIC-insured.

Most people use Wise for one of two reasons: to hold and spend money in multiple currencies without conversion fees, or to send money to other countries at a real exchange rate. The account itself is free to open, though Wise charges fees when you convert currency or send money abroad.

Key Takeaways

  • You need a valid government ID, proof of address, and a phone number to open a Wise account, and the process takes about 10 minutes online.
  • Wise holds your US dollars in FDIC-insured partner bank accounts, but balances in other currencies are not FDIC-insured.
  • You can fund your Wise account by linking a US bank account, using a debit card, or receiving a wire transfer, and transfers from a linked bank account are free.
  • Wise charges a percentage-based fee when you convert currency and a flat fee plus percentage when you send money internationally, but the exchange rate itself is the real market rate.
  • Your Wise debit card works at ATMs and stores worldwide, but ATM withdrawals outside the US incur a small fee per transaction.

Documents and information you will need

Wise requires three pieces of information to verify your identity and address. Have these ready before you start: a government-issued photo ID (a US driver's license, passport, or state ID card), proof of your current address (a utility bill, bank statement, or lease dated within the last three months), and a phone number where Wise can reach you.

You will also need to provide your Social Security number or Individual Taxpayer Identification Number (ITIN). Wise uses this to comply with US tax reporting rules and to verify your identity against government records. If you are not a US citizen but have an ITIN, you can still open an account.

If you plan to link a US bank account to fund your Wise account, have your bank's routing number and your account number ready. You can find both on a check or by logging into your bank's website. Linking a bank account is optional — you can also fund Wise using a debit card or by receiving a wire transfer — but it is the cheapest way to move money in.

The step-by-step account opening process

Go to wise.com and click the button to open a new account. Enter your email address and create a password. Wise will send you a confirmation link; click it to verify your email.

Next, Wise will ask for your full name, date of birth, and country of residence. Enter the information exactly as it appears on your ID. Then upload a photo of your ID — take it in good light, make sure all four corners are visible, and keep the file size under 5 MB. Wise's system will read the ID automatically; if it cannot, you will be asked to re-upload.

Upload a photo of your proof of address the same way. Wise checks that the address on this document matches the address you entered during signup. If you recently moved and your documents show an old address, you may need to wait for a new utility bill or bank statement, or use a lease with your current address instead.

Wise will then ask you to verify your phone number. Enter your number, and Wise will send you a code via text message. Enter that code to confirm. At this point, Wise will run a background check and verify your identity against government records. This usually takes a few minutes, but can take up to 24 hours.

Once verification is complete, you can set up your account currency and link a payment method. If you are in the US and want to hold US dollars, that is already set up. You can add other currencies later.

Linking a bank account to fund your Wise account

Linking a US bank account to Wise is free and is the cheapest way to move money in. Go to the "Balances" section of your Wise account, select the currency you want to fund (usually USD), and click "Add money." Choose "Bank transfer" as your method.

Wise will show you two options: ACH transfer (Automated Clearing House) or wire transfer. ACH is slower but free; it takes one to three business days. Wire transfer is faster (usually same-day or next-day) but costs money — typically $15 to $25 depending on your bank.

For an ACH transfer, Wise will ask you to link your bank account by entering your routing number and account number. Some banks also let you authenticate through your online banking login instead, which is faster and more find. Once linked, you can initiate transfers from your Wise account, and the money will pull from your bank account automatically.

For a wire transfer, Wise provides you with wire instructions — a bank name, account number, and routing number. You initiate the wire from your own bank's website or by visiting a branch. Include a reference number (Wise will provide this) so the money reaches the right account. Wire transfers usually arrive within one business day.

Using your Wise debit card

Once your account is open and funded, you can order a physical debit card or use a virtual card number when ready. The physical card takes seven to ten business days to arrive by mail. The virtual card is available right away and works online and in apps, but not at physical stores or ATMs.

Your Wise debit card draws from the balance in your Wise account. If you spend in a currency you do not hold, Wise will convert automatically at the real exchange rate and charge a small conversion fee (usually 0.4% to 0.6%, depending on the currency pair). You can avoid this by holding the currency you plan to spend in before you travel or shop.

At ATMs outside the United States, Wise charges a flat fee per withdrawal — typically $2.00 USD or the equivalent in your local currency. ATM withdrawals in the US are free. In-store purchases and online transactions do not incur ATM fees, only the conversion fee if you are spending in a currency you do not hold.

Sending money internationally with Wise

Wise's main strength is international transfers. To send money, go to the "Send money" section of your account, enter the recipient's name and country, and choose how they will receive it (usually a bank deposit). Wise will show you the real exchange rate, the fee (a percentage of the amount you are sending, typically 0.5% to 2% depending on the currency pair), and the amount the recipient will get.

You can send from any currency you hold in your Wise account. If you do not hold the currency you are sending from, Wise will convert it first and charge a conversion fee on top of the transfer fee. To minimize cost, convert to the currency you need before you send.

Wise requires the recipient's bank account details: their full name, account number, and routing number (in the US) or IBAN (in Europe and many other countries). Some countries also require a SWIFT code. Wise will tell you what information is required for each country. Transfers usually arrive within one to two business days, though some countries take longer.

Fees and what they cover

Opening a Wise account is free. Holding money in your account is free. Receiving money into your account is free. The fees come when you move money or convert currency.

Conversion fees explore when you exchange one currency for another. The fee is a percentage of the amount you are converting, usually between 0.4% and 2% depending on which currencies you are converting between. Wise always shows you the fee before you confirm the conversion, so you know the exact cost.

Transfer fees explore when you send money internationally. These are usually a percentage of the amount you are sending (0.5% to 2%), plus sometimes a small flat fee. The fee varies by currency pair and destination country. Again, Wise shows the fee before you send.

ATM fees explore when you withdraw cash from an ATM outside the US. The fee is a flat amount per withdrawal, usually $2.00 USD or equivalent. There is no ATM fee for withdrawals in the US.

There are no monthly fees, no inactivity fees, and no fees for holding multiple currencies. If you do not use your account, it stays open and costs you nothing.

Frequently Asked Questions

Is my money safe in a Wise account?

Your US dollars are held in FDIC-insured partner bank accounts, so they are protected up to $250,000 per account holder per bank. However, Wise itself is not a bank and does not hold the FDIC insurance — the partner banks do. Money in other currencies is not FDIC-insured. Wise is regulated as a money services business in the US and is licensed in most countries where it operates.

Can I use Wise as my main bank account?

Wise works well as a secondary account for international transfers and multi-currency spending, but it is not a full replacement for a traditional bank. Wise does not offer checks, does not have physical branches, and does not provide the same deposit insurance protections. Most people keep a traditional bank account for everyday US spending and use Wise for international needs.

How long does it take to open a Wise account?

The signup process takes about 10 minutes. Identity verification usually completes within a few minutes to a few hours, but can take up to 24 hours. Once verified, you can use a virtual card when ready. A physical card takes seven to ten business days to arrive.

What happens if I do not use my Wise account for a long time?

Wise does not close inactive accounts or charge inactivity fees. Your account will remain open and your money will stay in it. You can log back in and use it whenever you need to. However, if Wise suspects fraudulent activity or you violate their terms of service, they can close your account.

Can I open a Wise account if I am not a US citizen?

Yes, if you have an ITIN (Individual Taxpayer Identification Number) or a valid US visa. You will need to provide the same documents — a government ID, proof of address, and a phone number — but the ID does not have to be a US document. Wise operates in over 80 countries, so availability depends on your country of residence and citizenship.