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.
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.
Bank of America
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.
Winner: Wise While it can be difficult to gauge exactly what you’ll pay with Wise and Bank of America before entering your information into their respective sites, you can expect to pay much higher fees in general with Bank of America than with the consistently affordable Wise.
Our table lets you compare the services you can use to send money abroad. Compare services on transfer speeds and fees, then click Go to site when you're ready to send.
To understand who offers better exchange rates, you’ll need to first look at the mid-market rate. This is the true exchange rate that averages the buying and selling rate of a global currency — and the rate banks and transfer services use when they trade among themselves.Let’s look at the rates that Wise and Bank of America offer compared to the mid-market rate.
Wise
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.
Bank of America
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):
If the mid-market rate is 1 USD = 1.34 CAD
Your bank’s exchange rate might be 1 USD = 1.30 CAD
Winner: Wise Its mid-market exchange rates make Wise the clear winner. You’ll be hard-pressed to find a stronger exchange rate elsewhere.
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.
Bank of America
With Bank of America, your transfer is typically delivered in two to three business days.
Winner: Wise Both Wise and Bank of America offer quick transfers, but your average transfer will be quicker with Wise.
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
Case study: Sending $3,000 to Canada
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.
Bottom line
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.
Frequently asked questions
No, Wise does not distinguish between business and personal transfers. But the more frequently you use Wise, the better deals and rates you could receive.
Yes, Bank of America offers wire transfers to bank accounts throughout the United States.
When processed through a reputable bank or company, your funds are safely tracked until in the hands of your recipient. And if you’re sending money internationally, federal protections are in place that require banks, credit unions and money transfer companies to, for example, disclose all fees up front and give you 30 minutes to cancel a transfer, assuming it hasn’t yet been picked up or deposited.
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.
Kevin Chen is a personal finance expert and a former writer at Finder. His expertise has been featured in CNN, U.S. News and World Report, Lifehacker and CreditCards.com, among other top media.
How do you know if your international money transfer made it safely? Learn how to track or cancel, and find out what your rights are when it comes to sending money.
From bank transfers to specialist money transfer companies, there are several options available when you need to transfer money overseas from your bank account.
If you need to transfer money overseas using your credit card, you can do so via your bank, MoneyGram, Western Union and PayPal. This can be useful in emergency situations, but credit card transfers are usually not a cost-effective option.
If you’re looking for a secure way to send money overseas, an international bank draft could be for you — but if speed is important, consider using a money transfer service instead.
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Wise
Bank of America
