Wise is a real, regulated money transfer company, founded in London in 2011 as TransferWise and renamed Wise in 2021. It says it isn't a bank, so standard balances aren't FDIC insured, and money is safeguarded instead. In 2025 the CFPB ordered Wise to fix fee and disclosure failings in the US.
If you've ever been stung by a bank's exchange rate on a payment from a client abroad, you'll have come across Wise. It's popular with freelancers and small business owners, which is exactly why people ask whether it's safe to leave money there. I've read Wise's own protection pages and the regulator's notice so you get both the reassuring facts and the awkward one.
Where Wise came from and who runs it
According to Wikipedia, Wise was founded in London in 2011 by Kristo Kaarmann and Taavet Hinrikus under the name TransferWise. It rebranded as Wise in 2021 and listed directly on the London Stock Exchange the same year. A listed company has to publish accounts and answer to regulators, which is a good sign, though it's no promise your own experience will be perfect.
Is Wise a bank? What that means for your money
Wise says very plainly that it isn't. Its help centre says it isn't a bank, which means it doesn't lend out customers' money to people or businesses. That's a point in its favour, because customer balances aren't being used to fund loans.
The flip side is deposit insurance. Wise's US page says its transfer service and non-interest Wise balances aren't covered by FDIC insurance. Instead, Wise says it keeps customer funds in a mix of cash at leading commercial banks and low-risk, highly liquid assets, apart from its own operating funds. That's called safeguarding, and it's different from insurance. For UK customers, Wise's own blog says its e-money services aren't covered by the FSCS either.
Wise and FDIC insurance on interest balances
There's one exception. Wise says customers who opt in to its interest feature on US dollar balances can get up to 250,000 US dollars in FDIC pass-through insurance through its Program Bank. That's a specific opt-in feature with conditions, so read the terms before you assume a balance is covered.
Wise licences and regulators in the US
Wise US Inc is licensed as a money transmitter in the states Wise lists and is registered with FinCEN, which it renews every year. It's also supervised by the CFPB. In states where it isn't licensed directly, Wise says money transmission is offered through a partner, Community Federal Savings Bank, supervised by the OCC. If you live outside the US, a different Wise company applies to you, so find the entity named in your own terms.
What the CFPB said about Wise
This is the awkward part, and I'd rather you heard it from me than discovered it later. The CFPB's order in 2025 found that Wise misled US customers about its ATM fees, didn't adequately disclose other fees, and failed to refund remittance fees within the required timeframe when money didn't arrive on time. The CFPB amended the order in a later announcement, and the revised civil penalty is approximately 45,000 US dollars.
It's a regulator finding about past practices, not a statement that your money is at risk. Orders like this usually require a company to put better compliance in place, and the CFPB's page is the place to read the full detail.
| What I checked | What the official pages say |
|---|---|
| Is it a bank? | No, per Wise's own help centre |
| Founded | 2011 in London, per Wikipedia |
| US regulation | Licensed money transmitter, registered with FinCEN, supervised by the CFPB |
| Where customer funds sit | Cash at banks and low-risk liquid assets, kept apart from Wise's own funds |
| FDIC cover | Not on standard balances, up to 250,000 US dollars on opt-in interest balances |
| CFPB action | An order in 2025, amended with a penalty of approximately 45,000 US dollars |
Sensible habits when using Wise for work
Safeguarding protects your money from the company's own finances, but it doesn't protect you from being tricked. Be wary of anyone asking you to send money on their behalf, anyone who sends a payment and asks for a part back, and any message that claims to be from Wise but pushes you to log in through a link. Go to Wise by typing its address or opening its app.
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- Only pay people you know and have checked.
- Keep your account password and codes private, even from someone claiming to be support.
- Check the fee and exchange rate screen before you confirm a transfer.
- Keep records of what you send and receive for your tax return.
If you're building a freelance business, my guide to freelance writing opportunities has plenty to think about on getting clients, and Stripe versus PayPal looks at the card side. As ever, check with an accountant or the official tax body for your own situation.
Is Wise safe to use?
Wise is a real, listed, regulated company that is open about not being a bank and about how it protects funds. The 2025 CFPB order is a good reason to check the fees and delivery details on each transfer rather than trusting the headline. This isn't financial advice. Read the terms for the Wise company that serves your country, and use your regulator's complaints process if something goes wrong.
Frequently asked questions
Is Wise legit?
Wise is a real company founded in London in 2011 and listed on the London Stock Exchange since 2021, according to Wikipedia. In the US it's licensed as a money transmitter and supervised by the CFPB.
Is Wise a bank?
No. Wise's help centre says it isn't a bank and doesn't lend out customers' money.
Is my money FDIC insured at Wise?
Wise says its transfer service and non-interest balances aren't FDIC insured. Opted-in interest balances on US dollars can have up to 250,000 US dollars of pass-through insurance.
What did the CFPB find about Wise?
The CFPB found Wise misled US customers about ATM fees, didn't adequately disclose other fees and was late refunding some remittance fees. The order was amended in 2025 with a penalty of approximately 45,000 US dollars.
How does Wise keep customer money safe?
Wise says it holds customer funds in cash at banks and low-risk liquid assets, separate from its own operating funds. That is safeguarding, not insurance.
Does Wise operate the same way in every country?
No. Different Wise companies serve different regions, each with its own regulator and protections, so check the entity named in your own terms.
