Funds held in a Wise Account are not automatically FDIC-insured; FDIC coverage is only available for USD balances in accounts that have opted into the interest feature, which sweeps funds into participating bank accounts. Wise retains all interest and earnings generated by permissible investments made with customer funds that are not in the interest feature.
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
This provision establishes that the default state of a Wise Account does not carry FDIC insurance protection, and that Wise retains all investment earnings on pooled customer funds held outside the interest feature. The conditional nature of FDIC coverage requires consumers to take an affirmative opt-in action to obtain deposit insurance protection on USD balances.
The updated terms now authorize Wise to accept incoming funds via FedNow, a new instant payment service. The agreement states that FedNow transactions are processed in real time and generally cannot be canceled or reversed once completed, distinguishing them from traditional transfers that may have reversal windows. The terms also establish that Wise may decline any incoming FedNow transaction at its discretion where required for security, compliance, or operational reasons, without specifying advance notice or appeal procedures. Users receiving FedNow payments should understand that such transfers become final immediately upon completion.
View change record →New provision explicitly disclaims FDIC insurance protection and asserts Wise's ownership of investment earnings, creating material distinction from bank accounts.
View full change record →Under this clause, consumers who do not opt into the interest feature hold funds that are not FDIC-insured, and any earnings generated by Wise's permissible investments of those funds accrue to Wise rather than the consumer. Consumers who opt into the interest feature have their USD balances swept into FDIC-insured accounts at participating banks.
Cross-platform context
See how other platforms handle FDIC Insurance Conditionality and Wise Retains Investment Earnings and similar clauses.
Compare across platforms →"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
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This provision establishes that the default state of a Wise Account does not carry FDIC insurance protection, and that Wise retains all investment earnings on pooled customer funds held outside the interest feature. The conditional nature of FDIC coverage requires consumers to take an affirmative opt-in action to obtain deposit insurance protection on USD balances.
Under this clause, consumers who do not opt into the interest feature hold funds that are not FDIC-insured, and any earnings generated by Wise's permissible investments of those funds accrue to Wise rather than the consumer. Consumers who opt into the interest feature have their USD balances swept into FDIC-insured accounts at participating banks.
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