WISE 3.19% interest EUR

[kaytiedid]

Has anyone activated the interest on the EUR balance in WISE?

If yes, is the money instantly available if needed?

EDIT:

I will be getting this rate in France

https://ibb.co/7Rwfbpm

https://ibb.co/ry7gZXn

 

[2suthrn]

@kaytiedid They pay 20% belgium tax on it, so effectively it's only 2.9%.

Edit: see comment below, I was wrong.

 

[jiloml]

@2suthrn What tax is that? Isn't is supposed to be 30%?

 

[jessicamorris]

@jiloml yes, it's 30%

 

[kaytiedid]

@2suthrn I get 3.19% and I am in France

https://ibb.co/nn6Rc6p

 

[justlookingforanswers]

@kaytiedid I got annual fees of 0.29% and 3.37% after fees

 

[kaytiedid]

@justlookingforanswers nice where are you based?

 

[justlookingforanswers]

@kaytiedid UK

 

[kaytiedid]

@justlookingforanswers I am in France so different underlying tax I guess

 

[jiloml]

@2suthrn Are you a user in Belgium using Wise's interest feature? Or are you just saying that they pay 30% tax to Belgium for all users (because their bank partner is based there)? Because I'm a user in Belgium and it seems like the interest feature isn't available for us Belgians.

 

[2suthrn]

@jiloml The second part, I'm a Dutch resident and according to our tax treaties we should pay 0% on our interest to the belgium tax authority. However, there's no way to get exempt at Wise and you need request the tax back from the belgium authorities yourself (which is of course a huge hassle).

IBKR for example handles it differnetly, if you can prove to them you're a dutch tax resident, you don't get taxed in your interest (in Ireland, since that's where they are registered). Like it much better.

 

[ecgbeorht]

@2suthrn Yeah, WISE doesn't have its act together:

Can I get a tax reduction or refund?

Currently, we're unable to apply withholding tax reductions as we do not collect tax residency information.

If you’re eligible for a lower withholding tax rate under the Belgium double tax treaty with your country of residence, apply to the Belgian tax authority using the official form for refund of Belgian WHT (Form 276 INT). We are working on providing a tax statement (credit advice) to help you with this application. The process to obtain a refund may differ for each country so seek advice from a tax adviser if you are unsure.

The Belgian forms -- in 4 languages -- look like a mess. I'm not looking forward to figuring them out.

Wise should just ask tax residency for those of us who are (a) facing 30% withholding and (b) ok about telling them where we're resident.

 

[raven00]

@jiloml Weird because I have the interest and I’m belgian

 

[jiloml]

@raven00 Belgian resident too? Or only nationality?

 

[raven00]

@jiloml Both. But I was wrong, I don’t have the 3%, only 1,70 something

 

[jiloml]

@raven00 Can you explain how to find that in the app? I don't see it anywhere. Thanks

 

[raven00]

@jiloml When you go on the euro wallet you can see all the transactions. Look for one with a positive balance that says « balance » in the title. When you click on it you will see the details.

Sorry I’m not sure my explanation is really clear but I don’t see the information elsewhere in the app.

 

[sisterpolly3]

@kaytiedid No need to hunt after these often short-term bonus offers that are way less than the official ECB rate.

You can get the official €STR (like 3.6%ish percent minus 0.1% fees) tracked at LU0290358497. It's like an ETF that lends money to the ECB. Of course there are some risk factors (especially with Deutsche Bank, there are other ETFs on this too) but that risk is close to nothing imo

 

[sisterpolly3]

@mikefordii Funny thing is that I find it more convenient to buy an ETF instead of moving money across accounts every few months

Regarding your Lyxor suggestion: I agree, also this guy compared spread and fees etc.

https://www.reddit.com/r/Finanzen/comments/122j11b

, it's German but maybe you can translate it if you cannot speak German

 

[laimaboyd6]

@sisterpolly3 Out of curiosity, are the dividends paid monthly?