Wise vs Banks: Is a Digital Money Account Really Cheaper?

When sending money abroad or managing foreign currencies, many people in the United Kingdom now face a choice between a traditional bank account and a digital money account such as Wise. Banks are familiar and widely used, but digital providers position themselves as lower-cost, more transparent alternatives.

So is a digital money account actually cheaper than a normal bank — or do savings depend on how and where you send money?

This guide compares Wise vs banks in a clear, practical way. It looks at fees, international bank transfers, transfer times, and real-world examples. It’s written for general information purposes to help readers who want to compare money transfer providers before choosing how to move money internationally.

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How banks and digital money accounts charge for international transfers

To understand whether a digital account is cheaper, it helps to see how costs are structured across different providers.

Exchange rates and foreign exchange costs

Most regular banks apply a margin to the foreign exchange rate they offer. This margin is rarely shown clearly and can vary by destination country, currency pair, and account type.

Wise uses the mid-market rate and applies a separate upfront fee, which is shown before you confirm the transfer. This makes it easier to compare costs across different providers.

Fees, extra costs, and intermediary charges

International transfers can involve:

• Bank transfer or wire transfer fees
• Extra fees added through the SWIFT network
• Intermediary fees charged by third-party banks
• Receiving bank charges applied to the recipient’s bank account

Digital providers aim to show fee information upfront, while banks may bundle costs into the exchange rate or apply an additional charge later.

Compare exchange rates and transfer fees.

Is a digital money account like Wise cheaper than a bank?

In many cases, yes. Digital money accounts like Wise are often cheaper because they use the mid-market exchange rate and charge a clearly stated upfront fee. Banks typically add exchange rate markups and extra charges, which can increase overall costs, especially for regular international transfers.

Overview: Wise vs traditional banks

Wise at a glance

Wise is a financial technology company offering a digital Wise account for international payments and currency management. It is commonly used for:

• Sending money to different countries
• Holding balances in multiple currencies
• Paying overseas suppliers or freelancers

Wise operates via an online banking interface and mobile app, with pricing shown before you send money.

Banks at a glance

Banks provide international transfers through broader account services, often via:

• Online banking or a bank branch
• SWIFT payments
• Phone or in-branch customer support

International transfers are usually not the core focus of a regular bank, and pricing can vary widely.

Exchange rates: where most cost differences appear

Bank exchange rates

Banks typically:

• Apply exchange rate margins
• Use the SWIFT transfer system for many routes
• Offer limited visibility on pricing

Even small margins can add up when sending large amounts.

Wise exchange rates

Wise:

• Uses the mid-market rate
• Shows the upfront fee separately
• Displays the estimated delivery time before confirmation

This approach makes it easier to understand total cost and delivery expectations.

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Has Wise updated its fees or services recently compared to banks?

Wise periodically updates its pricing, features, and supported currencies in line with market conditions and product availability. These updates usually involve small adjustments to percentage-based fees or expanded payment routes rather than introducing monthly fees. Traditional banks tend to change pricing less frequently, but may still adjust exchange rate margins or international transfer charges without prominent notice.

Practical cost examples

These examples are illustrative only. Actual pricing depends on currency, date pricing, and market conditions.

Sending £500 abroad

• Bank fees and exchange rate margins can form a large proportion of the total cost
• Wise’s percentage-based pricing is often clearer

Sending £1,000 abroad

• Bank exchange rate markups become more noticeable
• Wise shows total cost and transfer times upfront

Compare costs for your transfer amount.

Sending £10,000 abroad

• A small bank exchange rate margin can add significant extra costs
• Wise fees scale with the amount, but transparency remains consistent

For very large transfers, some users also compare broker-style providers.

Comparison table: Wise vs banks

Speed, support, and convenience

Transfer speed

Wise international payments often complete by the next working day on major routes. Bank transfers via the SWIFT network may take longer due to intermediary banks.

Customer support and access

Wise provides customer support online and in-app, while banks offer phone, online, and in-branch support. Preferences vary depending on whether users value digital access or face-to-face service.

Are digital money accounts always cheaper than banks?

Not always. Cost depends on:

• Transfer size
• Currency and destination
• Whether you’re sending money regularly

Wise may be cheaper for frequent or everyday transfers, while banks may still be used for specific one-off needs.

When to compare beyond Wise and banks

Wise and banks are not the only options. Depending on your specific needs, you may also want to compare:

• Currency brokers for large transfers
• Other digital money transfer apps
• Providers specialising in certain regions

Comparing providers helps identify the most suitable option for your transfer.

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Destination-specific pricing

Costs can vary by destination country. Before sending money, it’s useful to check:

• A relevant Send Money to your chosen destination page
• A Cheapest Way to Send Money to chosen destination guide

See costs for sending money to chosen destination.

FAQs About Wise vs Banks

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