I have seen many people using their Wise accounts, just like a bank account. So, this post is for people who think Wise is a bank. I am not sure if they are aware of all the Terms & Conditions, risks, etc.
So, Let me try to clarify a few things.
- Wise doesn’t have a banking license. It has only a payments license.
- So, it cannot offer some of the traditional banking services like bank loans, credit cards, etc.
- It does offer an IBAN and interest on deposits. But, this is done indirectly because these funds are held in some major banks.
- Basically, it’s a money transfer service with different currencies. Plus, it offers a few additional services.
- So, the deposits with Wise don’t have the same protection like the deposits in your regular french bank accounts like BNP, SG, Boursorama, etc.
- It cannot offer regulated products like Livret A, LEP, LDDS, PEA, etc like French banks.
- I do have a Wise account with a EUR IBAN. But, I use it only as a money transfer service and don’t have any deposits.
- Also, I have declared it to Impots via the 3916 form.
Should you declare the WISE accounts to Impots?.
- If you have an IBAN in it, it has to be declared in the 3916 tax annexure.
- If you use it just as a money transfer service without holding an IBAN, you don’t have to declare it.
Some Official Text from WISE Website
Belgium and the European Economic Area (EEA) – Wise Europe SA, is a Payment Institution authorized by the National Bank of Belgium, incorporated in Belgium with registered number 0713629988 and registered office at Rue du Trône 100 bte 3, 1000 Brussels, Belgium, with passporting rights across the EEA.
Does Wise count as a bank?
As mentioned before, Wise isn’t a bank — but a Money Services provider. So, while banks offer a large array of services, such as loans, savings, and interest accounts, Wise specializes in holding and converting foreign currencies, and sending international bank transfers”
Wise is a non-bank payment provider. This means your Wise account is an electronic money account. This makes your Wise account different from a bank account.
Can you use Wise as a bank account?
No, you cannot use Wise as a bank account, because Wise is not a bank, it’s a financial technology company.”
What happens if Wise becomes insolvent? Wise Assets (offered by TINV Europe AS, an investment subsidiary of Wise) holds customers’ fund units segregated from any corporate assets. In the unlikely event of Wise (or TINV Europe AS) becoming insolvent, your assets are held separately from any of Wise’s other corporate assets. All of this means that your investment will be returned to you in the event of Wise (or TINV Europe AS) going bankrupt. In addition to the protection offered through the strict segregation of our customers’ assets, the Estonian Investor Protection Sectoral Fund will cover your assets for up to 20,000 EUR.
Disclaimer
- Any finance-related information shared is not professional legal, tax, or investment advice.
- The information provided is of an educational and general nature and is not investment advice within the meaning of Articles L. 321-1 and D. 321-1 of the French Monetary and Financial Code.
- Investment carries risks of loss and past performance does not guarantee future performance.
- For all professional advice, please consult a certified financial planner, CGP, CIF, tax consultant, etc.
