The Lemon Fool

Hi,

A while back Wise (formerly TransferWise) introduced "Wise Stocks" through a subsidiary called Wise Assets (AKA Tinv Ltd, which in turn has subsidiaries licensed in different country markets). "Stocks" is an account feature where you can elect to stash your cash held there in an FSCS protected "MSCI index-tracking fund managed by Blackrock, so all the currencies Wise supports can be held as stocks.".

They recently announced Wise Interest (https://wise.com/gb/interest/)...provided again through Wise Assets and Blackrock but this time in a fund invested in short-term government bonds.

Up to now, I've only left small sums in my Wise accounts (post FX transfers), primarily because they aren't a proper bank so there's no FSCS protection should they go bust.

However, both "Wise Stocks" and "Wise Interest" are provided through Wise Assets which claims to offer investor protection against counterparty risk (for UK peeps, FSCS up to 85K). More info: https://wise.com/help/articles/144iDX5R3dr8REvgtlDUx9/is-my-money-safe-using-interest-and-stocks

Before I move some longer-term cash savings there and turn on "Wise Interest", does anyone see any potential gotchas?

Cheers

P.S here's their FCA registry entry: https://register.fca.org.uk/s/firm?id=0010X00004RLmTUQA1

Your money will be in Wise hands for a short time before it goes out and a short time after it comes out. If Wise goes but at the wrong time, you are in trouble. You have the same risk using Wise to make a currency conversion and money transfer, however. That comes down to the question of whether you think Wise is a good risk, and how many times you are willing to run that risk. It is also important to understand that a BlackRock money market fund will not be as safe as bank deposit.

That comes down to the question of whether you think Wise is a good risk, and how many times you are willing to run that risk. It is also important to understand that a BlackRock money market fund will not be as safe as bank deposit.

You're right, but for me, the risk calculation has to change in light of the additional authorisations related to "Wise Stocks" and "Wise Interest". Wise is no longer just a money transfer and currency conversion company.

Indeed, your point that BlackRock money market funds are not as safe as Bank deposits seems fair.