Wise vs Revolut – Fees, Exchange Rates & Comparison Guide For 2024
Updated February 22, 2024
- Wise vs Revolut: The Fees
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- Revolut vs Wise Exchange Rates
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- Revolut versus Wise: Money Transfers
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- Wise vs Revolut: Other Services on Offer
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- Revolut vs Wise: Getting Started With the Platforms
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- Frequently Asked Questions
- Final Thoughts
There are several digital banking options available today, and both Wise and Revolut offer simple and effective ways to send money abroad and spend money in different currencies when you are travelling.
Wise was created to be a money transfer service, while Revolut models itself more as a digital bank that offers currency exchange – but which is the most suited to what you need?
Revolut was launched in July 2015 by Nikolay Storonsky, a former trader, and Vlad Yatsenko who used to build financial systems for investment banks.
Together they created Revolut to be a prepaid card with accompanying app that was a cheaper way for travellers and tourists to be able to switch between currencies and spend money abroad.
Through the years, it has started providing more services that you might expect to find from a bank – but it is worth remembering that while Revolut has a European banking licence, it is not registered as a bank in the UK, which means your money will not be protected by the FSCS.
Wise has been around a bit longer – it was established in 2011 – and has not changed much from its original aim of being a way to make cheap international bank transfers.
Again, Wise does not have a UK banking licence, so remember that any money held will not be protected by the FSCS.
In this article, we will compare the two providers where it matters – how much it costs to use their currency exchange services, how simple their transactions are to complete and what else they offer to customers.
Wise vs Revolut: The Fees
Financial service companies, banks and payment processers all need to make money – and the way many of them do that is to charge fees for different services.
These fees can range from monthly account management to charges for sending cash abroad, spending and even things like withdrawing money from a cash machine.
Let’s consider some Revolut vs Wise fees below.
Revolut
There are several different fees to consider with Revolut. First, there are no account fees as such, but there are different account types that you can open.
The Standard Plan is free, but other plans range from £3.99 to £45.00 a month.
With the Standard Plan, the following fees should be considered:
- Up to £1,000 per month fee-free spending without any fees abroad (1.00% fee for any spending above this)
- Up to £200 per month free withdrawals (or five separate withdrawals) – 2% fee after this limit is reached
- International transfer costs vary. For example, it costs £1.50 to send £1,000 to USD, but it is free to send £1,000 to EUR.
Wise
Wise does not charge any account management fees – there is only one account type available and it is free to open with no ongoing monthly costs.
- £7 cost to get a physical card
- Two free withdrawals every month (up to £200 in total) – 1.75% for withdrawals above this limit plus a fixed fee of £0.50
- Fixed transfer fee (same currency) £0.32
- Currency exchange fee depends on currency, but 0.35% to 2.00%
- Top up fee (depending on source) 2%
Revolut vs Wise Exchange Rates
Revolut
With Revolut, there are two ways to exchange currency. You can either load your card with another currency beforehand, locking in the exchange rate at that point, or you can spend from your base currency and take advantage of the exchange rate at the moment of transaction.
Revolut uses the Interbank Exchange Rate on relevant transactions from Monday to Friday. However, it does apply a markup for weekend transactions of 1% – which means that your spending will be more expensive at the weekend.
You can see how much your currency exchange transaction is going to cost thanks to the online calculator available on the Revolut website. This is a live feed so it is accurate and reliable.
Wise
When comparing the Wise vs Revolut exchange rate, the exchange rate used by Wise is based on the mid-market rate at the time the transfer is made. This is the same rate used throughout the week, including at the weekend.
With this variable rate, it can be tricky to work out the total cost of money movements – Wise provides a calculator to let you know how much it will cost to complete the exchange in total.
Revolut versus Wise: Money Transfers
Revolut
There are 37 currencies available with Revolut.
You can make free transfers to any country in the SEPA region, and to other Revolut users globally.
Transfers can be a little on the slow side – most transfers take one to two working days to complete.
Wise
Wise is available in 144 countries. The Wise current account will let you hold balances in 10 currencies and you can top up in 19 currencies (using bank transfer, credit and debit cards, Apple Pay and Google Pay).
With Wise you can exchange to 54 currencies.
You can choose how quickly you want the transfer to complete – the fastest can be done in as little as three hours, but this is the most expensive option. The longest will take up to three working days (and this is therefore the cheapest option).
Wise vs Revolut: Other Services on Offer
Revolut
Revolut offers several different additional services aside from international money transfers.
These include:
- Spending analytics and monthly budgets
- Instant spending notifications
- Upcoming payment reminders
- Cashback and rewards from certain retailers
- Virtual cards for safer online transactions
- Revolut <18 card for children aged six to 17
- Business plan and Pro Plan available
- Savings plans
- Access to insurance and travel bonuses (depending on subscription level)
Wise
Wise is not modelled on a ‘normal’ bank account in the same way that Revolut is, so the additional services might seem somewhat lacking in comparison.
- Categorised spending
- Transparent fee structure
- Opportunities for investment
- Savings jars
- Direct debits
Revolut vs Wise: Getting Started With the Platforms
Revolut
To sign up for an account with Revolut, you first need to download the app. This is a native app designed to work seamlessly whether you have an Android or iPhone, and all the application information is included there.
You can open a Revolut account without needing any paperwork, and everything about your plan can be managed from within the app, which makes it simple and more straightforward.
You can choose your plan details, based on your needs – from the free Standard Plan to the Ultra Plan.
As previously mentioned, Revolut holds a European banking licence, but not one in the UK – which means that although accounts are ringfenced in Barclays, your money is not under the protection of the FSCS.
Revolut has said that it plans to get a UK banking licence, but currently it remains a digital payment service.
75% of reviewers on Trustpilot have given Revolut a five-star rating, with an overall score of 4.3 stars.
Wise
You can set up a Wise account completely online, and the process is simple and straightforward with no need for extra paperwork.
Apps are available for both iOS and Android, and you can manage the whole account, including all currencies, savings jars and direct debits.
According to data from Trustpilot, 83% of users rate Wise as a five-star service – and it has an overall rating of 4.1 stars.
Frequently Asked Questions
When it comes to Revolut vs Wise, you might consider Revolut to be better than Wise if you want additional services alongside international money transfers, but Wise might be better if you prefer transparent fees and speedy transfers. Consider your specific needs when comparing TransferWise vs Revolut.
Transfer fees depend on the currency that you are transferring, and the currency that you are transferring to. International transfer fees from Wise to other currencies range from 0.35% to 2.00% of the transferred amount.
When considering Revolut versus Wise (previously TransferWise vs Revolut), Wise might be a better choice for you if you want to make simple international transfers or currency exchanges to multiple currencies, while Revolut might be better for you if you like to have more comprehensive banking additions.
Wise is not a bank – it is an international digital payment service that does not hold a banking licence. While you can manage different currency accounts through the Wise app, your money is not protected by the FSCS as it does not have a banking licence in the UK.
TransferWise, now known as Wise, was created to be a low-cost, simple way to transfer money to other currencies and to other countries. The price remains low because it uses the mid-market exchange rate and a transparent fee structure to offer this service.
The main disadvantage of TransferWise, now known as Wise, is that it does not offer as many services as companies like Revolut. However, Wise is great for low-cost international currency transfers, which is what it was set up to do.
Wise is widely used in Europe, and in fact it is available in 144 countries. You can hold up to 10 currencies in your Wise account, and exchange funds into 54 currencies – making it a truly multi-currency account.
Final Thoughts
If you are looking for an account you can open to make international transfers and spending easier, then both Wise and Revolut have what you need.
When comparing Revolut vs TransferWise, consider your specific needs such as Wise vs Revolut for travel settings or Wise vs Revolut business uses.
If you want simple and transparent fees with fast transfers, as well as a wide range of available currencies, then Wise is probably the best solution.
However, if you are looking for an account that offers international transfers and spending as well as a host of other financial services like savings, insurance and spending analytics, you might prefer Revolut.
WikiJob does not provide tax, investment or financial services and advice. The information is being presented without consideration of the investment objectives, risk tolerance or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk including the possible loss of principal.
