When you need to send money overseas, you’ll likely think of visiting a local bank like Bank of America. Offering wire transfers to more than 200 countries, BofA provides secure, convenient money transfers that typically arrive within two business days.
On the other hand, UK-based Wise is a fundamentally different way to send money online. Using peer-to-peer technology, it matches users looking to send money in one currency with customers in other countries looking to receive the same money. So if you need to get pounds to someone in the UK, Wise will find someone in the UK looking to send dollars to the US, essentially swapping your funds.
Both Bank of America and Wise will safely get your money where it needs to go, but which is superior on fees, exchange rates and speeds? Read on to find out.
 Wise |  Bank of America | |
|---|---|---|
| Fees | From 0.41% to 1.5% of your transaction plus a fixed fee | From $25 to $85 or more |
| Exchange rates | Mid-market rate | More than the mid-market rate plus margin |
| Speed | 1–3 business day | 2 to 3 business days |
| Max Transfer Amount | Private individual – $50,000 per day and $250,000 per year Business – $250,000 per day and $1,000,000 per year | Users are limited to $1,000 per transaction and small businesses can send up to $5,000. |
| Read review | Read review |
To use Wise, you’ll need to first create a free account, but it’s easy to set one up with your first transfer.
To send money, go to its site, select the currencies you are exchanging and indicate how much you want to send. After reviewing your rate and fee, money is pulled from your bank account and sent to a Wise bank in your recipient’s country using the mid-market exchange rate.To send an international wire transfer with Bank of America, you’ll need to first set up a bank account. You can quickly and easily sign up for an account online by visiting a BofA branch with your Social Security number, contact information and residential address.
Once you have an account, you can send a wire transfer overseas by logging in to your BofA account, clicking the Transfers tab and then clicking Outside the Bank Transfers. Enter the details of your transaction — how much you’re sending, the currency and to where — and confirm your rates and fees.
Fees with Wise will depend on where and how you’re sending money, but most clock in at around $9.90. Overall, fees range from 0.5% to 1.5% of your transaction — and sometimes a bit higher, depending on the currency you’re transferring to plus a fixed fee. To send $1,000 to China, for example, you’ll pay the currency fixed fee plus 1.1% of your transaction (or $18.79); to the Philippines, the fee drops to 0.75% plus the currency fixed fee ($10.92). You can easily find out what you’ll pay by visiting its “How much does Wise cost?” page.
While most major US banks offer free bank-to-bank domestic transfers (or waive fees for specific account levels), they’re typically your most expensive option when sending money internationally.
Banks charge higher fees — anywhere from $25 to $85 or more, depending on the details of your transfer — and a bigger variety of fees: incoming, outgoing and other fees. On top of high fees, they offer weaker exchange rates than money transfer specialists. They also offer fewer options for your recipient, typically requiring they have a bank account in which to receive your cash.
Wise boasts excellent exchange rates, and this is the area that sets it apart from banks and other providers.
It’s one of the only money transfer services that offers you the mid-market rate. So if you’re sending $2,000 to Canada and the mid-market rate is 1 USD = 1.34 CAD, that’s the rate you’re going to get.
Nearly all banks skew the mid-market exchange rate for a profit, which means your recipient will receive less money.
Using the example of a transfer to Canadian dollars (CAD):
All transfers from US dollars are received to Wise within one business day. But it could take another two business days for your recipient to see the cash in their account.
With Bank of America, your transfer is typically delivered in two to three business days.
| Payment methods | Minimum and maximum transfers | Delivery methods | Transfer speeds | Countries | |
|---|---|---|---|---|---|
| Wise | Bank account, credit or debit card | $1 minimum; $1 million | Bank transfer | 1–3 business days | 170+ countries |
| Bank of America | Online, in person | Users are limited to $1,000 per transaction and small businesses can send up to $5,000. | Bank transfer | 2–3 business days | 200+ countries |
Lauren and her family is buying a cabin in Alberta, and she needs to transfer $3,000 to a broker for a down payment. While Lauren has a Bank of America account, she’s also seen ads on the subway about Wise.
Here are what her bank transfer options would look like with both Wise and Bank of America.
| Wise | Bank of America | |
|---|---|---|
| Exchange rate | 1 USD = 1.34 CAD | 1 USD = 1.30 CAD |
| Transfer fee | $21.08 | $40 |
| Transfer speed | 1 business day | 2 business days |
| Total Canadian dollars received | 3,994.58 CAD | 3862.85 CAD |
If Lauren chooses Wise, not only will she save about $20 on transfer fees, but she’ll also put down 131.75 more Canadian dollars on that dream cabin in the woods.
Wise’s mid-market exchange rates and low fees could save you time and money when sending funds overseas.
Ultimately, you’ll want to compare your options to find the service that best fits your individual needs.
Whether products shown are available to you is subject to individual provider sole approval and discretion in accordance with the eligibility criteria and T&Cs on the provider website.
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