Provision record
Wise · Wise Terms of Use (Superseded URL) · View original document ↗

FDIC Insurance Limited to Opt-In Interest Feature

High severity High confidence Explicit document language Unique · 0 of 352 platforms
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Document Record

What it is

Wise Account balances are not covered by FDIC insurance by default; Wise holds customer funds as permissible investments under money transmitter law and retains any interest earned on those investments. FDIC insurance coverage for USD balances is available only to users who affirmatively opt into the interest feature, which sweeps funds into partner bank accounts.

This analysis describes what Wise's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology

ConductAtlas Analysis

Why it matters (compliance & governance perspective)

This provision establishes that the default condition for Wise Account balances is non-FDIC-insured fund holding, with Wise retaining earnings on the permissible investments used to hold customer funds. Users who do not opt into the interest feature do not receive deposit insurance protection, which is a material distinction from traditional bank account structures.

Recent Activity

This document changed recently

Medium Jul 28, 2026

The updated terms extend the deadline for reporting transaction errors from 60 days to 120 days for all transactions except Send Money transfers. The 120-day period begins either from the first day you could see the error in your online account history or the day Wise sent the first written statement showing the error, whichever comes first. This change gives account holders twice as long to identify and report discrepancies before losing the right to dispute them.

View change record →

Clause Stability Stable

0
Changes
5
Months Monitored
Jul 9, 2026
First Seen
Jul 9, 2026
Last Seen

Consumer impact (what this means for users)

Under this clause, funds held in a Wise Account are not automatically protected by FDIC insurance; the agreement states that Wise owns any interest earned on investments backing customer balances. Consumers who opt into the interest feature will have their USD balances swept into FDIC-insured partner bank accounts, providing deposit insurance coverage up to applicable FDIC limits.

What you can do

⚠️ These actions may provide transparency or partial mitigation but may not fully address the underlying issue. Effectiveness varies by jurisdiction and individual circumstances.
  • Opt Out of Arbitration
    Log into your Wise Account and navigate to account settings to enroll in the interest feature, which sweeps USD balances into FDIC-insured partner bank accounts.

Cross-platform context

See how other platforms handle FDIC Insurance Limited to Opt-In Interest Feature and similar clauses.

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▸ View Original Clause Language DOCUMENT RECORD
"
Wise is Not a Bank, and your Wise Account is Not a Bank Account. Money you hold with Wise, in any currency, is not automatically insured by any deposit protection scheme, including the Federal Deposit Insurance Corporation (FDIC). Wise holds funds held by its customers in permissible investments in accordance with applicable laws. Wise owns the interest or other earnings on these investments, if any. However, although Wise is not a Bank, eligible customers that opt-in to the "interest feature" will have their United States Dollar (USD) funds held in their Wise account "swept" into a FDIC insured, interest bearing account at one or more of our participating banks.

Excerpt from Wise's Terms of Use (Superseded URL)

ConductAtlas Analysis

Institutional analysis (regulatory & governance intelligence)

1.

Insight

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Enforcement risk, jurisdiction flags, contract triggers, and due diligence action items.

Applicable agencies

  • Consumer Financial Protection Bureau (cfpb)
    Regulates consumer financial products and services. Can investigate companies for unfair, deceptive, or abusive financial practices including improper fees, billing errors, and data misuse.
    Who can file: Anyone who has used a consumer financial product or service in the US
    What you need: Account number or details, dates of transactions or events, description of the issue, and any supporting documents
    What to expect: The company must respond within 15 days. The CFPB forwards your complaint and may use it in enforcement actions. Individual compensation is possible in some cases.
    File a complaint →

Provision details

Document information
Document
Wise Terms of Use (Superseded URL)
Entity
Wise
Document last updated
May 5, 2026
Tracking information
First tracked
May 21, 2026
Last verified
July 9, 2026
Record ID
CA-P-013999
Document ID
CA-D-00265
Evidence Provenance
Source URL
Wayback Machine
Content hash (SHA-256)
561266d11f984a2eb3eab7608e74f5c481a231a012a4ed1cb0115da73c83c5e7
Analysis generated
May 21, 2026 00:40 UTC
Methodology
Evidence
✓ Snapshot stored   ✓ Hash verified
Citation Record
Entity: Wise
Document: Wise Terms of Use (Superseded URL)
Record ID: CA-P-013999
Captured: 2026-05-21 00:40:14 UTC
SHA-256: 561266d11f984a2e…
URL: https://conductatlas.com/platform/wise/wise-terms-of-use-superseded-url/provision/CA-P-013999/fdic-insurance-limited-to-opt-in-interest-feature/
Accessed: Sept. 8, 2026
Permanent archival reference. Stable identifier suitable for legal filings, compliance documentation, and research citation.
Classification
Severity
High
Categories

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Frequently Asked Questions

What does Wise's FDIC Insurance Limited to Opt-In Interest Feature clause do?

This provision establishes that the default condition for Wise Account balances is non-FDIC-insured fund holding, with Wise retaining earnings on the permissible investments used to hold customer funds. Users who do not opt into the interest feature do not receive deposit insurance protection, which is a material distinction from traditional bank account structures.

How does this clause affect you?

Under this clause, funds held in a Wise Account are not automatically protected by FDIC insurance; the agreement states that Wise owns any interest earned on investments backing customer balances. Consumers who opt into the interest feature will have their USD balances swept into FDIC-insured partner bank accounts, providing deposit insurance coverage up to applicable FDIC limits.

Is ConductAtlas affiliated with Wise?

No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by Wise.