Wise (formally transferwise) is a banking service/app generally used by frequent travelers who like to have different currencies at the same time.
I joined wise with the potential hope of locking in a good exchange rate for the Japanese yen, as I will going on vacation in April 2025 (almost a year from now). It is unknown what the exchange rate will be by then, so who knows, I might lose out even with this effort.
Either way, on to the question…. I find the fee structure very confusing, if some one can explain it to me….
It says 2 fee-free monthly withdrawals under $100 each.
Then $1.50 USD per withdrawal under $100
Then $1.5 per withdrawal of $100 + 2% of the amount above $100.
So, scenario (excluding the 2 initial free withdrawals) and also assuming I find a fee-free ATM, which do exist.
(1) $100 withdrawal will have a $1.50 fee
(2) $200 withdrawal will have a $1.50 (for the first $100) + $2.00 (2% of the additional $100) = $3.50 fees total…
Now….. Wouldn’t it be cheaper to do 2 separate $100 withdrawals, again assuming a fee free ATM? As in 2 separate withdrawals would be $3 rather than $3.50.
Another example…
One $1000 withdrawal (daily max) would be $1.5 + $18 = $19.50
Vs ten $100 withdrawals would have ($1.5×10) $15.
I have zero issues making multiple $100 withdrawals throughout the day. Or just sitting in front of an ATM continuously making withdrawals…. But it seems flawed that smaller withdrawals would be cheaper than one large withdrawal…
Can someone clarify what I may be missing, or confirm that $100 withdrawals will be my best course of action?
****As a side note, I will have a credit card which will be a lions share of my spending, as well as a normal checking account with zero international transactions fees if I need additional cash. Again, this Wise account was made so that I can attempt to lock in the current favorable yen exchange rate prior to my trip a year from now.*****
Thanks friends.
by Jorazal