Wise launches instant access savings account paying 4.12%

Fintech giant Wise has launched a new instant access savings account with a 4.12 per cent rate.  

Wise Interest allows UK personal and business customers to use their cash balances, including pounds, US dollars and euros.

The account differs from a traditional bank or building society savings account in that the money rather than being loaned out to other customers, is moved to an interest-earning fund that holds government assets such as bonds. 

This means there is some risk - should governments default or rates turn negative - but Wise says by holding short-term bonds it is able to quickly liquidate its bonds without significantly impacting their market value. 

Customers are charged a 0.29 per cent fund management fee annually.

Nilan Peiris, Chief Product Officer, Wise, says Wise Interest offers the benefits of a savings account, with a current account “experience”. 

“We think it’s wrong that big banks continue to offer savers such appalling rates, especially at a time when inflation is high and consumer pockets are being hit. Banks are happy to offer customers’ money to other customers as loans and mortgages, but they do not pass on their returns,” 

Wise has 16 million customers globally and is currently processing c.£9bn in cross-border transactions every month.