Transferwise Is Introducing Fees - Cheapest Way to Keep USD without Fees?

jlim87 on 31/03/2021 - 12:23
Last edited 31/03/2021 - 12:32 by 1 other user

Hello.

I'm currently using Wise (previously called Transferwise) to hold USD for me. They used to not charge any fees for having different currencies in their bank accounts, but this is changing and there are now thresholds. I have amounts above those thresholds and intend for it to go higher as I get paid in USD.

What would be the best way to keep this USD and not pay heaps of fees. Let's assume one day I accumulate USD 100k, rather than paying their fee? Would I be better off using one of those local bank accounts that is configured to USD?

Anyone else keeps large amount of USD? How do you do it?

Financial Wise

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Comments

  • dust on 31/03/2021 - 12:35
    +1

    Under the mattress.

  • badonde on 31/03/2021 - 13:10

    Phew! Doesn't apply to businesses except for Euro holdings

  • GG57 on 31/03/2021 - 13:10
    +1

    The bigger question is: Why?

    • jlim87 on 31/03/2021 - 22:02
      +3

      Why not?

      I get paid by ppl in the US into a US bank account in USD? And I prefer keeping it in USD so I can also make payments using USD, instead of transferring it to AUD and then back again.

      I have other forms of income in AUD and there's no real need to convert when I know I'll need to use USD at some point.

  • kawinuyo on 31/03/2021 - 13:47

    I looked into the Citibank Global Currency Account I sent the following questions.

    Just have a general question about your global current account before I apply. Trying to see if I understand this correctly.

    1. You can hold money of different currencies in this account in the listed currencies available

    2. Say if an investment overseas deposits $1000 USD in the account, it stays as USD until I choose to change it to another currency.

    3. From the pds it seems there are NO fees for the transaction except for what the other bank may charge me. So the only thing I have to take into consideration is the rate of exchange published by you at the time.

    Are these understandings correct?

    My reply from them is

    Thank you for your email.

    Your understanding of the Global Currency Account is correct.

    Please refer to the following links to better understand the account.

    • jlim87 on 31/03/2021 - 22:00

      Thanks. I'll look into this. I'll just need to check I can use this account to pay and receive USD without fees.

      This feels so dumb as now I have to go through this process:-

      • Receive USD into my Transferwise USA Bank account
      • For amounts above threshold, transfer USD into my Citibank account but retain it in USD
      • When I need funds to make payment, I have to transfer Citibank USD > Transferwise USD and hopefully no fees there too.
  • T-man on 31/03/2021 - 15:41
    -1

    Store in USDC coin, secure, stable, convenient and can move around the world, just sell to USD when you need it.

  • this is us on 31/03/2021 - 15:50

    I have USD in a Citibank USD account (Global Currency). No fees.

    • jlim87 on 31/03/2021 - 21:57

      Thanks, I'll look into this

  • [Deactivated] on 31/03/2021 - 20:42

    This is technically a negative interest rate. Charging you money to hold your savings.

  • ctttran on 31/03/2021 - 21:22

    Worth looking into Revolut. It has multi-currency accounts and exchange rate is better than the banks if you're moving between USD and AUD frequently.

    • jlim87 on 31/03/2021 - 21:57

      Thanks. Their basically a competitor to Transferwise. Knew about them but didn't think of looking into it. Based on trasnferwise notice, it seems to be an Australian regulation thing, so I hope revolut doesnt introduce it as well

  • this is us on 01/04/2021 - 09:03

    I think the question is… Should we keep USD or convert to AUD? 😂

    About 12 months ago, 1 USD was AUD 1.73.

    I missed the opportunity and always hoped I'd see that again, which hasn't happened…

    Now it's 1.32, which is pretty bad… It can get a lot worse, though…

    *better and worse from the perspective of someone who has USD and would like to convert to AUD, not considering other variables… 😊

  • brisdaz on 20/07/2022 - 20:36

    The question is what's the safety of holding money in Wise? Is it covered by the Australian government deposit guarantee of up to $250,000aud?

    It is an ADI but not a normal one of the same type as paypal - https://www.apra.gov.au/register-of-authorised-deposit-takin…

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