Account will pay 4.12% rate
IN BRIEF:
Wise has 16m customers globally and is currently processing c.£9bn in cross-border transactions every month
Money in accounts will not be loaned out to other customers, but will be moved to an interest-earning fund that holds government assets
By holding short-term bonds Wise can quickly liquidate its bonds without significantly impacting their market value
What does this mean?
Nilan Peiris, Chief Product Officer, Wise, says “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.”
