UK-based remittance platform Wise has rolled out a product that allows customers in the UK to earn in line with local interest rates. This sets a new standard for holding money for people and businesses.

In their Wise Account, clients are now able to hold their money in government backed assets that follow the respective interest rate offered by the Bank of England, the US Federal Reserve, and the European Central Bank. Growing the money held The new product means customers will no longer have to give money to their bank for free in the hope they lend it responsibly. With Wise Assets, and now ‘Interest’ – when customer money generates earnings, they’ll keep the return.

For UK customers, Wise is introducing the ‘Interest’ asset on GBP, USD, and EUR balances. Currently the annual variable yields are: 3. 29% on USD balances; 2.

52% on GBP balances; 0. 88% on EUR balances. This is done using a Public Debt Money Market Fund (MMF), a type of fund that invests in short-term assets issued and guaranteed by governments.

Funds can be used instantly 99. 99% of money held will be immediately available to spend and send, and customers can move their money into ‘Interest’ in just a few taps within their Wise app. In line with its international purpose and mission, Wise plans to roll out access to ‘Interest’ to customers across Europe, after having secured its investment licence in Estonia earlier in 2022.

While traditional banks often take an unspecified cut of earnings made from lending your money, Wise is fully transparent about the cost of ‘Interest’. The overall cost of the product is 0. 29% including the fund manager costs.

This is included in the annual variable yield figure that is shown to customers. There will be no transaction cost for moving money in and out of ‘Interest’. Wise’s officials stated that at they’re making financial lives easier for international people and businesses.

That was their goal when we launched the Wise Account, and now they’re improving that by giving people the option to grow the money they hold with. With traditional banks, one often can’t control how they lend his/her money and doesn’t receive the full amount earned from the investments they make. Wise is building something different.

‘Interest’ is designed to be more rewarding, and more transparent. The Wise Account is setting a new standard for holding money, giving people and businesses more options outside of traditional accounts. While these are currently available in the UK only, the company is always looking to bring an augmented experience to its customers all over the world.

This brings it another step closer to replacing old-school international banking. .