Wise, Revolut, N26, Mercury - How Safe is Your Money With EMIs/Neobanks?
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- Опубликовано: 17 окт 2024
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Sometimes our clients will raise concerns about Electronic Money Institutions - Neobanks, such as Wise (Transferwise), N26, Revolut, Mercury, etc.
How safe your funds are in such institutions? Can you deposit a larger amount of money? Can something happen to your funds here?
Should you be cautious? Is it a better idea to stick with the traditional banks, especially with large amounts of money?
Today we are clearing all of the EMI myths and misconceptions!
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We are Offshore Citizen team. We help people become global: get a second passport, set up a second residency, pay less taxes, do banking abroad, etc.
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Author: Michael Rosmer
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Michael, you made a good point about the safety of EMIs but at the end of the video you said that you would not keep lots of money in them. Maybe you could please further clarify this? Also, in the case of Wise, if they keep customers funds in segregated accounts, why they would mention a protection of 20,000 EUR in Europe under the Estonian Guarantee Fund or 85,000 GBP in UK under the FSCS?
If you you a light with a diffuser we can see both your face and the beautiful city in the background. Just a RUclips tip from a fellow youtuber
This is a good explanatory video. My opinion is that these electronic money institutions are SAFER because don't issue any loans. All of the client funds are held indirectly or directly in cash accounts within the relevant monetary system. Essentially, these are pure deposit banks. This is how all banks should operate.
That's fine if you're prepared to pay much higher fees since of course revenue from loans offset costs associated with transactional banking.
N26 have frozen hundreds of client's accounts, including my own, by falsely stating that they had found irregularities. My lawyer in Spain deposited my money into the account whilst acting as my Power of Attorney in the sale of my property there. This was endorsed by the European Bank at The Hague but the bank took no notice of this and continued to hold my money from October 2022 until August 2023. They finally released the money under duress but have not compensated me for the loss in the transfer rate or any form of interest which some others have been fortunate to receive.
My account ran smoothly for four years before this happened. I would advise you to steer clear of this bank. If you follow my advice then I would appreciate you informing the bank, stating my name
the real issue is different - how sensitive they are to large transactions, and what are the risks that they will freeze your money. For this reason I try to avoid PayPal - they once blocked me held my money for 180 days after that which really did hurt my cashflow in business. This wouldn't happened with a real bank
This actually can happen with a real bank that's the point of some of the discussed risks later in the video
This is what I’m worried about. I’m going to get a major dental procedure in another country but it’s super expensive there too, still cheaper than usa. I’m worried because I want to transfer a lot of usd to local currency but I don’t want to face any issues.
At least with a real bank we can call ahead of time and let them know we’re going overseas. I’m just worried about their customer service because I heard it takes forever to fix issues.
Talk to your bank officer
Did they give back your money after 180 days?
Wise has never Let me down
Which is the most cyrpto friendly?
N26 have frozen hundreds of client's accounts, including my own, by falsely stating that they had found irregularities. My lawyer in Spain deposited my money into the account whilst acting as my Power of Attorney in the sale of my property there. This was endorsed by the European Bank at The Hague but the bank took no notice of this and continued to hold my money from October 2022 until August 2023. They finally released the money under duress but have not compensated me for the loss in the transfer rate or any form of interest which some others have been fortunate to receive.
My account ran smoothly for four years before this happened. I would advise you to steer clear of this bank. If you follow my advice then I would appreciate you informing the bank, stating my name
Thanks for the video. Has helped a lot. Given that it is year old and Neobanking has evolved more, example: Wise and jars which now hold my Japanese YEN. How safe is the money?
Same answer as before
N26 have frozen hundreds of client's accounts, including my own, by falsely stating that they had found irregularities. My lawyer in Spain deposited my money into the account whilst acting as my Power of Attorney in the sale of my property there. This was endorsed by the European Bank at The Hague but the bank took no notice of this and continued to hold my money from October 2022 until August 2023. They finally released the money under duress but have not compensated me for the loss in the transfer rate or any form of interest which some others have been fortunate to receive.
My account ran smoothly for four years before this happened. I would advise you to steer clear of this bank. If you follow my advice then I would appreciate you informing the bank, stating my name
If in a well regulated country like Uk or Ireland then your funds are ring fenced daily under CASS rules in a top tier bank so in my opinion safe as a normal high street bank.
What about USA?
Hi, Michael.
Could you, please, make an updated video on banking in Georgia?
I have an account with Credo bank. I wouldn't recommend. It kinda works, but the service itself is not great.
I had my money at a neobank in the US, they closed my account down and then said that the money would be given to the state. I could then claim it using a claims form to the state. It would be a long process to get the money back. I would use them sparingly, but putting all your money there, i would avoid.
Did you manage to get your money bank?
Have you tried any other EMIs?
@@OffshoreCitizen no. The bank didnt give it to the state yet. I didn't lose that much, but it would have been alarming if I had lost more.
Are you a U.S. citizen, or off shore? @@hm-vg5bw
N26 have frozen hundreds of client's accounts, including my own, by falsely stating that they had found irregularities. My lawyer in Spain deposited my money into the account whilst acting as my Power of Attorney in the sale of my property there. This was endorsed by the European Bank at The Hague but the bank took no notice of this and continued to hold my money from October 2022 until August 2023. They finally released the money under duress but have not compensated me for the loss in the transfer rate or any form of interest which some others have been fortunate to receive.
My account ran smoothly for four years before this happened. I would advise you to steer clear of this bank. If you follow my advice then I would appreciate you informing the bank, stating my name
The main difference is when something goes wrong, your countries authorities in the EU will say, none of our business and you have to turn to Lithuania. I do love Revolut and will continue to use it but one advice: NEVER do an international transaction with a large amount without doing a small test transaction first.
That small test doesn't guarantee anything. The small amount will probably go trough but the big amount will probably get flaged.
Great video Michael thanks! What are your thoughts about Revolut offering "Savings accounts" ( which is basically investing in an MMF)?
I saw this offer in Revolut EU in partnership with Fidelity Investments but i must say it was hard to understand if it safe😅
N26 have frozen hundreds of client's accounts, including my own, by falsely stating that they had found irregularities. My lawyer in Spain deposited my money into the account whilst acting as my Power of Attorney in the sale of my property there. This was endorsed by the European Bank at The Hague but the bank took no notice of this and continued to hold my money from October 2022 until August 2023. They finally released the money under duress but have not compensated me for the loss in the transfer rate or any form of interest which some others have been fortunate to receive.
My account ran smoothly for four years before this happened. I would advise you to steer clear of this bank. If you follow my advice then I would appreciate you informing the bank, stating my name
Thank you so much for the video. Haven't watched yet, but must warn people to never deal with Wise. Their support is like paypal and overall service makes it almost a scam. BTW i love Embily and Wirex, but those are for crypto
Thanks for the recommendations. How did you like the video?
@@OffshoreCitizen well it's a very general information, i was expecting a comparison of the banks in the title, i could really use that ;) but after watching your video i don't want to open accounts at regular banks anymore and for that i'm thankful.
Everyone has a different experience. I personally have used Wise for transactions of up to 5000 dollars and not a single time had a problem.
Hey there. Interesting video. Revolut asked for my tax information. I do have a side hustle. What happens when I put my tax information?
If there would be an economic crash. Could, in theory, PayPal Wise and Stripe steal your money?
N26 have frozen hundreds of client's accounts, including my own, by falsely stating that they had found irregularities. My lawyer in Spain deposited my money into the account whilst acting as my Power of Attorney in the sale of my property there. This was endorsed by the European Bank at The Hague but the bank took no notice of this and continued to hold my money from October 2022 until August 2023. They finally released the money under duress but have not compensated me for the loss in the transfer rate or any form of interest which some others have been fortunate to receive.
My account ran smoothly for four years before this happened. I would advise you to steer clear of this bank. If you follow my advice then I would appreciate you informing the bank, stating my name
I was going to set up EMI bank accounts this week for my business, but in the comments here, there are examples of WISE & Revolut customers who have had their funds frozen. This makes it very unattractive. Even if this is a rare occurance, if it happens to you, you are hugely inconvenienced. I learned something from the video however, I can see that the money is not going to be lost via the bank going bankrupt.
Michael, any bank can freeze your money, are there examples of this happening in normal banks?
I heard these have bad customer service though
And I saw a lot of people having their account locked out frozen or declined payment even when there is money in the balance
Depends on which one plenty have way better customer service than traditional banks
Hello! very informative video!... I have a question regarding some of these specific neo-banks options: I've often heard or read in some videos or reviews that they would recommend opening a Mercury Business Account, over simply getting a Wise and USA bank details from it, for example... And the reasoning is usually more or less that it is more of a "real" American bank account than the others, and in theory that's understandable given their structure, the idea that they are FDIC-insured, etc...
But my question is: In practice, it is really that much beneficial to have an account with them over a Wise account, for example? Let's say that I'm an Amazon Seller and I want to expand to sell not only in the USA, but Canada, jump into Europe, UK, etc... Obviously a Wise account would be very useful for dealing with all of these currencies; but I've often head that some people would still recommend opening a Mercury Account for your USD funds and use the Wise account for the rest... Why? Would it help with business credibility? It's still a neo bank using a traditional bank to hold balances; Is it because it can help you built financial history in the US, credit history and such? Does it tho? Because in their site they say that, for example, they don't really report your payment history with their credit card to credit reporting agencies.
So I would like your take on it, maybe in the practical case that I used as a example of just a seller that intents to go into the USA market, perhaps open an LLC there and sell in other markets as well... It is really ideal to open a Mercury Account and use it as your USD account + your Wise or Revolut account for the rest?... or in practice it isn't really much different from using Wise for everything and simply getting an USA "account" and bank details with them?
N26 have frozen hundreds of client's accounts, including my own, by falsely stating that they had found irregularities. My lawyer in Spain deposited my money into the account whilst acting as my Power of Attorney in the sale of my property there. This was endorsed by the European Bank at The Hague but the bank took no notice of this and continued to hold my money from October 2022 until August 2023. They finally released the money under duress but have not compensated me for the loss in the transfer rate or any form of interest which some others have been fortunate to receive.
My account ran smoothly for four years before this happened. I would advise you to steer clear of this bank. If you follow my advice then I would appreciate you informing the bank, stating my name
Can I receive my social security in the US on a wise account? I mean, if I receive a payment from the US and dont want it to be transferred to my regular European account but to my Wise account.
This is true these EMI's are not safe as compared to traditional banks.
Last week wise deactivated my personal accoun which i was usineg from last 4 years. no crypto or anything was involved i was just using it to tak payments from my clients.
it happened right after i applied for a business account by registering a company in UK.
before doing that ia sked their support if i can do that or not they said yes so i went ahead.
No they are holding my money around $30000.
My life is stopped right now.
Please help me by giving some hope, has anyone ever got their money back after deactivation?
Yes file through BBB( better business Bureau)..
Its funny how its we have to prove we are innocent when it comes to banking and taxes. Its not the regime that have to prove we are guilty. I got my company account shut down because i did not log into the online bank and updated my customer information (the bank integrated into the accounting system, so no need to use online banking)
What bank did you use at the moment? Have you found a better option?
Good insight, thanks for sharing Mike
Always a pleasure!
How do you feel about the EMIs?
@@OffshoreCitizen I've used Wise only: it was easy to open an account, offered better exchange rate, fast and efficient, I could open USD, Euro etc bank accounts very easily and at no cost. I could invoice my clients in their local currencies. They also provided me a card. For larger amounts, I 'd look for better exchange rates elsewhere. On the whole I'm happy with Wise and would recommend it.
Good morning Sound Slight, what does it involve to do the exchange elsewhere? Do you research for the best deal every time? @@soundslight7754
Thanks, Michael - great overview.
Always a pleasure!
What's your take on the topic?
@@OffshoreCitizen I have a minimal amount of money in Wise in case I can ever escape the USA...and a consultation with you will also be on my bucket list, although as a small-fry, I can't afford as much help as I would like. I know Wise watches to determine if they think anyone is using them to "play" the currency markets.
Here is the most important safety consideration when it comes to banking: Make sure that there exists a legal as well as a technical barrier between YOUR money and THEIR money. Unfortunately, all traditional banks FAIL this criteria because they typically loan out your money, which means your money becomes a loan given to them (the bank). So if a traditional bank goes bust, then all of your money (which you legally loaned to the bank) is gone too ...... unless you manage to get a gov't bail out.
That's wrong. They don't loan your money...they use your money as a collateral to borrow from the central bank at a low interest rate and than they loan out to people the money they received from the central bank at a much higher interest rate. In US, this system that I just described is called fractional reserve system.
Uhm…. Maybe I’m dumb but.. If banks couldn’t use your money to make more money, how would banks make money?
@@Ahduciekwndnbbbsvvvghhhyyyyy out of thin air
Bro learn about FDIC insurance
N26 have frozen hundreds of client's accounts, including my own, by falsely stating that they had found irregularities. My lawyer in Spain deposited my money into the account whilst acting as my Power of Attorney in the sale of my property there. This was endorsed by the European Bank at The Hague but the bank took no notice of this and continued to hold my money from October 2022 until August 2023. They finally released the money under duress but have not compensated me for the loss in the transfer rate or any form of interest which some others have been fortunate to receive.
My account ran smoothly for four years before this happened. I would advise you to steer clear of this bank. If you follow my advice then I would appreciate you informing the bank, stating my name
Michael, I'd be very interested in your thoughts on precious metal backed EMIs and PM backed debit card issuers. Platforms/companies like Stacker Market, Kinesis Money, VeraCash, and even EuroPacific Bank - if I recall correctly - that offer digital services and instant/near-instant liquidity via fractional ownership. Obviously not as secure as physical delivery and storage where you can audit your own inventory, but I do think it's an interesting diversification option. I feel like you'd have some valuable insights into this subsector of the EMI sphere...maybe worth a video? I'd be appreciative.
Good idea. Thanks for the suggestion.
How did you like this video?
@@OffshoreCitizen Super informative!
This is very helpful Michael. Very much appreciated. 🙏🏻 A selling point of a ‘money exchange’ service (like say Spartan FX) is the ability to speak to a person. Unless someone is undergoing a very specific/complex money transfer situation, I gather the ability to speak to a person has relatively little value. Agree? 💸
N26 have frozen hundreds of client's accounts, including my own, by falsely stating that they had found irregularities. My lawyer in Spain deposited my money into the account whilst acting as my Power of Attorney in the sale of my property there. This was endorsed by the European Bank at The Hague but the bank took no notice of this and continued to hold my money from October 2022 until August 2023. They finally released the money under duress but have not compensated me for the loss in the transfer rate or any form of interest which some others have been fortunate to receive.
My account ran smoothly for four years before this happened. I would advise you to steer clear of this bank. If you follow my advice then I would appreciate you informing the bank, stating my name
Can a person transfer funds from the FinTech EMI account with IBAN/SWIFT capabilities to another business bank account?
Yes certainly
Revolut has a horrible reputation when it comes to the security of your money.
They have shown to be incredibly sensitive regarding transactions and will freeze your account & customer services won't respond to you for months.
Oh really??
Depends what you're doing. For most people in most situations you'll likely never have issues.
Avoid large transfers. Don't use cash. Avoid transactions with more risky countries and industries and you're not likely to notice anything.
The part about not getting responses though I haven't found to be true. I find their customer service is very responsive. And when your account is frozen you don't lose the money you just lose the ability to do future transactions
@@OffshoreCitizen
That's not correct, apart from buying a couple of crypto coins (long time ago)I did nothing special and they just blocked my account, I had 950€ there and still didn't recover it, they block everything and you aren't even able to contact them apart from an email that probably they're going to mark as spam!
How many days when u transfer money from mercury to wise usd acc?
basically 1 - 2 days.
What a perfect topic! I have been wondering how these compare. Very curious about institutions with more self custody options and limited risk of sanction or bail-in.
Happy to be of service :)
How's your experience with the EMIs?
N26 have frozen hundreds of client's accounts, including my own, by falsely stating that they had found irregularities. My lawyer in Spain deposited my money into the account whilst acting as my Power of Attorney in the sale of my property there. This was endorsed by the European Bank at The Hague but the bank took no notice of this and continued to hold my money from October 2022 until August 2023. They finally released the money under duress but have not compensated me for the loss in the transfer rate or any form of interest which some others have been fortunate to receive.
My account ran smoothly for four years before this happened. I would advise you to steer clear of this bank. If you follow my advice then I would appreciate you informing the bank, stating my name
Hi, I have an e-commerce website in UK in GBP currency. I want all transactions to go to USA bank and keep the payment in GBP not in USD. So please let me know if you have any solution to this? Thanks
You could contact Chase or HSBC and see if they have a US based account that will do this.
I'm in north cyprus, I'm having difficult time with payment gateway, stripe dont work here,etc. I want to collaborate with you since you are also i woocommerce industry
Is the same true of Business Accounts with these EMIs. For example if I hold £3m+ in the account?
Business or personal the same principles apply.
@@OffshoreCitizen Thank you for taking the time to reply, I appreciate it.
Where are Timestamps ?
Would be interesting to hear your opinion about the Vatican Bank.
Interesting topic, I'm not an expert on the Vatican bank from what I've seen it's mostly limited to a very select clientele
Maybe I missed it but what was the answer here ?
You should understand the different risks associated with banking but neo banks don't actually hold your money so your money is typically safe from failure of the neo bank.
Safety is always a relative thing so you can never say anything is absolutely safe but your funds are relatively safe in neo banks especially the well backed ones.
So it is safe to hold money with Revolut?
Relatively
How does Spartan compare?
Do revolut operate like offshore bank?
In what way?
@@OffshoreCitizen in way that i can take and give funds from revolut without paying taxes to my country
😂@@BD-ft2iy
Do not Use Wise. They can keep your money without any explanation.
Is this the best way for a European to hold dollars?
There is no one size fits all it depends on your circumstances and objectives.
Best to book a call if you want to get into details specific to you
@@OffshoreCitizencan I get paid salary on wise personal account?
wise no longer works in the US
be aware of N26 they update their Policy
What's the update?
Wise closed my account and refused to refund the remaining balance.
How did that happen?
@@OffshoreCitizen They reason out it's because of binance p2p trade and refused to refund. I understand even if they closed the account and refund the balance. But in my case, they refused to refund.
Yeah that's a stupid company. I wouldn't trust them.
@@mrcreatortunhi have u get back your money? A week ago they just block my account, and i have $110.000 on the account
The days of banks are counted. Buy Bitcoin
if one day BTC is literally forbidden by supranational directives and most of the countries literally follow that and illegalize cryptos, you still will be so confident with BTC?
Hopefully this is true but we need a bunch of enabling technology still before we can go there
@@bcn614 You and i will always be able to transact in Bitcoin for exchanging goods and services. Illegal or not, there is nobody in the world that can do something about this. Learn about Bitcoin.
@@vladimirkazakov3033 Just watch and learn ;)
@@OffshoreCitizen Its like with the Internet, slowly at first, then all at once.
The best investment in telecom is this new project coming out of japan called Woooo this is an all in one communication app, their online meeting is out with live translation as well
Great and useful info Michael. Thanks!
Always a pleasure! Thanks for your support, Paulo.
Do you use any EMIs?