Question
I’m trying to fully understand Wise and its best use… Is it linked to our US bank account? Or do we transfer a lump sum funds into it?
Is there a way with Wise to take out cash or is it still better just to use atm?
Can we use Wise instead of opening a Spanish bank account if we are not here permanently?
We have been in Spain almost a month, primarily using credit card to pay for everything.
Answers
These are the answers from Spainguru’s Facebook group members:
“Wise can seem complicated, but it is a great service. It acts as a money converting service and an online bank. You connect it to your US bank account and either transfer funds to a Spanish account or hold it as dollars or Euros in your Wise account. You can even get a Wise debit card!
Two things to note though: As an online bank it does not have deposit insurance and other protections more traditional banks have. Second, the “bank” is based in Belgium so it doesn’t qualify for things that require a Spanish account.”
“Wise is “almost” a bank account. Technically. wise is not a bank – it’s a money services business. It is regulated by state regulators in the US but deposits are not insured. So, I wouldn’t leave massive amounts of money in my Wise account.
Here’s how I use Wise: I keep a modest balance – enough to cover several months’ worth of anticipated expenses and bills. We get some rental Income In Spain – I have that go into my Wise account.
As funds are drawn down, I will move more funds into my Wise account. Conversely, as the account gets larger than I’d like (ie more than 5-6 months worth of future expense), I move those funds into my US bank or my Spanish bank.
I do keep all of my Wise funds in euros, so the weakening dollar doesn’t adversely impact me. (If the dollar strengthens, I can easily move more. The main benefit of Wise is fast currency conversion at great currency rates (most banks kill you on the rate conversion)”
“My interest bearing $ WISE account is with a bank and is insured.”
“Check out Revolut. I like it much better than wise and it is a bank.”
“The USD in my interest bearing WISE account are FDIC insured. I add a couple of grand a month hoping the exchange rate will someday shift in my favor.”
“But to do that you need a physical address in the USA, correct?” -“I don’t think so”
“Check out N26 also. It has a Spanish IBAN”
“If you provide an address from another country like Spain or UK wise will want to set you up with an account from that country. Interest rates and services vary per country. For example on a UK or Spanish account the interest for euros is higher but in UK funds are not insured like in US on interest accounts.”
“We obtained a legal mailing address before we left to ensure we could keep our bank accounts etc.”
“May I ask you what company did you get, and are you happy with their service?”
“You do link your bank account, but depending on your bank you may have to reestablish the link for each transaction. Mine is linked to my U.S. and my Spanish accounts; the U.S. bank kept canceling the link, the Spanish one is fine.
You can get an ATM card and use it at any ATM, but most banks charge for ATM usage if you use it for an account from a different financial institution.”
“You can check to see if your US bank has a partnership with Wise. I do know Capitol One and Wise are linked. Transfers to my bank here in Spain, using my debit card, takes only minutes for the funds to go through”
“I use N26 and love it!”
“The interest rate in my U.S. bank account is 1.6%. Wise rate is 3.86%. Just as a basic savings or checking account, you are way ahead with keeping your money in a Wise account… plus the numerous other features mentioned here.”
“Linked to us bank account and just transfer from your bank account to wherever using size for a fee”
“Deposits in Wise are, for all practical purposes, FDIC-insured through a pass-through insurance. Your deposit actually sits at a bank, which is FDIC insured.”
“I have Wise in my Apple Wallet on my phone and use it to pay for everything (stores, restaurants) and it’s very convenient. It’s tied to my US checking account, and I easily transfer money.
I also have Amex in my Wallet, but no one seems to accept it here. Too bad because it doesn’t charge international transaction fees, which my US bank Visa debit card does. ATM charges $5 so I try to avoid it.”
“You need a Spanish bank account in the long run.”
Conclusion
The conversation shows that many expats rely on Wise for everyday spending, transfers, and currency conversion, thanks to its low fees and easy connection to a U.S. bank account. Several users highlight that Wise works well for short stays or for managing moderate balances in euros.
However, multiple members point out important limitations. Wise is not a traditional Spanish bank account, which means it may not meet requirements for long-term residency, certain contracts, or official financial procedures in Spain. Insurance protection also varies depending on the country of registration.
The overall takeaway is that Wise is convenient for short-term use or as a complementary tool, but most expats eventually need a local Spanish bank account. When considering the best setup, it helps to understand how Wise interacts with your existing bank account and whether it suits your long-term needs.
This article is based on personal opinions from the Spainguru community and is not legal advice.
FAQ
How does Wise link to a US bank account?
Wise connects directly to your US bank account, allowing you to transfer funds in and out easily. Depending on your bank, you may need to reauthorize the connection occasionally, but most users report smooth transfers between Wise and their US accounts.
Can Wise replace a Spanish bank account?
Wise is helpful for short stays, travel, or managing day-to-day expenses, but it does not fully replace a Spanish bank account for long-term residency or official procedures. Certain services in Spain still require a local bank account with a Spanish IBAN.
Is money stored in Wise insured?
Wise is not a traditional bank, but some Wise accounts provide pass-through FDIC insurance for USD balances held in partner banks. Insurance varies depending on your country of registration, so protection may differ between US, UK, and EU accounts.
Can you withdraw cash from a Wise account in Spain?
Yes, you can withdraw money using a Wise debit card at ATMs in Spain. However, some banks may charge ATM fees, so users often prefer cards with low international withdrawal costs.
Is Wise a good option for currency conversion?
Yes, many expats use Wise for its excellent exchange rates and fast transfers. It often offers better currency conversion rates than traditional banks, which is one of the biggest advantages for users moving money between USD and EUR.
Do I need Wise if I already have a Spanish bank account?
Having both can be beneficial. A Spanish bank account is often required for legal processes, utilities, or residency, while Wise offers low-cost transfers and flexibility for holding multiple currencies.
Can Wise be used for everyday payments in Spain?
Yes, users frequently add their Wise card to Apple Wallet or Google Wallet to pay in shops and restaurants. Wise works similarly to a standard debit card for everyday purchases.
Are there alternatives to Wise for expats in Spain?
Yes, popular alternatives include Revolut and N26. Revolut is a licensed bank in some countries, and N26 offers accounts with a Spanish IBAN, which can be useful for residency and local payments.
