Transferwise Borderless Review: The Multi-Currency Bank Account That’s Ideal For Digital Nomads

This page may contain affiliate links. Please read our disclosure for more info.

One of the complicated things about being a digital nomad who earns in multiple currencies is how to get paid. Both PayPal and our UK bank account charge high fees to receive money in a foreign currency and convert it into British pounds.

The situation for getting paid by the Amazon US affiliate program was even worse as they would only pay us by cheque in dollars. As we don’t have a fixed address, this meant we had to get the cheque sent to Simon’s mum who very kindly took it to the bank, dealt with all the paperwork for depositing a foreign cheque, and we paid high fees for this slow and annoying process.

Thankfully Transferwise Borderless came along and solved all our foreign payment problems.

Contents

What is Transferwise Borderless?

Transferwise is a company that has been around for years offering low-cost overseas bank transfers. Their fees are way lower than the banks, they always use the mid-market exchange rate, and the process is quick and simple.

Transferwise international transfer fees compared to other UK banks

Transferwise international transfer fees for converting £1000 to euros compared to other UK banks

The Transferwise Borderless account was launched in 2017 to allow people to hold bank accounts in multiple currencies. With our Borderless account we are given bank details for British, US, European and Australian bank accounts which means we can receive money into them in the local currency (dollars or euros etc.) with no charge.

This saves us a fortune on bank fees and means we no longer have to deal with annoying Amazon cheques as we can get paid straight into our US bank account. We have now switched most of our income from foreign sources to Transferwise and get paid in a mix of US dollars, Euros, and Australian dollars.

You can have bank details in the UK, US, Europe, and Australia (more countries coming soon) and also hold and convert 40+ other currencies and send money to 50+ countries.

Back to Contents

Who Can Get a Transferwise Borderless Account?

Most nationalities can open a Borderless account but there are a few exclusions—see the list here

Back to Contents

What Does it Cost?

Transferwise Borderless account costs

Transferwise Borderless account costs

It costs nothing to set up an account or receive money into our bank accounts from the same currency. But then how do we get it out? We have a few options:

1) Use the Transferwise Borderless Debit Card to make an online transaction in the same currency (i.e. pay our hosting bill in dollars from our US account) for free.

2) Withdraw cash with the Transferwise Borderless Debit Card in the same currency (i.e. euros when we’re in Europe). This is free for up to £200 a month then 2% after that.

3) Send the money to a bank account in the same currency. For example, we pay our Pinterest manager by bank transfer in dollars from our US account. For most currencies this is free.

4) Convert money from one currency to your home currency and transfer it to your home bank account. If we don’t have anything we need to use our foreign balances for, we convert it to pounds and withdraw it to our UK bank account.

Transferwise always uses the current mid-market rate for foreign exchanges (unlike our bank and PayPal) and then charges a small fee depending on the currency. For example to transfer USD to GBP costs 0.6% and EUR to GBP cost 0.5%. Once the pounds are in the GBP section of our Borderless account, we can spend it in pounds on our debit card or withdraw to our UK bank account for free.

Transferwise Borderless review - the cost of exchanging money from USD to GBP.

The cost of converting US$200 from my US balance to my GBP balance. Transferwise is always transparent about their fees and exchange rate.

If this sounds complicated, it’s really not. Transferwise is very simple to use. It takes seconds to transfer money between currencies and withdraw to bank accounts (once you’ve added the bank details). They are always transparent about the fees and will tell you the charge before you make the transfer.

You can see more about Borderless pricing here. 

Back to Contents

Transferwise Borderless Debit Mastercard

The Transferwise Borderless Debit Mastercard is new in 2018 and we love it! Transferwise’s international transfer fees are way lower than banks, but the card allows us to avoid even these low fees by spending money in the same currency we received it.

Unfortunately, the Borderless card is currently only available to European customers. 

So far we’ve used the card in France and Italy to spend money from our Euros account either by withdrawing cash or as a card transaction in a restaurant or shop. We’ve had no problems with it and love that the Transferwise app sends you a notification about what you just spent (great for security).

We’ve avoided fees by only withdrawing up to £200 in cash a month. After this Transferwise charges 2%. Although this is a lot lower than most bank accounts (Lloyds charge 2.99% plus £1.99 per withdrawal), we can get fee-free cash withdrawals with our Halifax Clarity credit card (as long as we pay it off straight away to avoid interest), so we’d rather do that.

We have also switched all of our monthly USD direct debits to come out of our USD account using the Borderless debit card to further reduce exchange fees.

You can use the debit card to spend money in any currency, even if you don’t have a balance in it. Transferwise will take it out of your balance that has the lowest exchange fee, which can range from 0.35–2%.

Back to Contents

Sending Money from PayPal to Transferwise

Our ad network only makes payments in US dollars to PayPal. To then convert the dollars to pounds in order to withdraw them to my bank account is really expensive as PayPal gives a terrible exchange rate.

If you have a UK PayPal account it looks like you can only add a UK bank account to withdraw money to. But I discovered that it is possible to link a US bank account by calling them.

Go to the contact page within your PayPal account, click call us and you’ll get a freephone number to call (which works on Skype too) and a code to give them. It was quite a simple process—I spent a few minutes on hold, answered some security questions, then gave them the ACH routing number and account number of my Transferwise US bank account. It was added instantly and shows up on PayPal as the Community Federal Savings Bank.

It takes up to two working days to transfer money from PayPal to my US account, but it costs nothing and once it’s in my Borderless account I can benefit from Transferwise’s much lower fees.

Note that this might not work if you don’t have a UK PayPal account—people from other countries like Canada have said that PayPal won’t link their US account.

Back to Contents

How Do You Set Up A Transferwise Borderless Account?

Setting up a Transferwise Borderless Account is quick and simple. You enter your details (including a phone number to get a security code sent to) and upload a photo of your ID (passport or driving license). It said it could take up to five working days to verify my identity but it worked instantly for me.

I then logged into my account and activated my USD, EUR, GBP, and AUD accounts with one click and could see the local bank details for each of them.

My Transferwise Borderless account showing my balances in pounds, dollars, Euros, and Australian dollars.

My Transferwise Borderless account showing my balances in pounds, dollars, Euros, and Australian dollars.

You can see the balances of each of these accounts in one page. If you click on USD it will show you your balance and bank details and you can click on the buttons to “Send USD”, “Add USD” or “Convert USD”. These processes take just seconds.

You can request a debit card from the Debit card page of your Borderless account.

To log in to your account securely you can either add a phone number and they will send you a security code by message or voice call when you log in or set up 2-step log-in on the Transferwise app. I recommend the app as it’s easier and you don’t have to worry if you change your phone number.

When we first used Transferwise we did end up changing our phone number (as we moved countries and changed SIMs) and couldn’t log in. I had to call Transferwise but they were very helpful and sorted it out quickly.

Back to Contents

Is Transferwise Safe?

Transferwise is regulated by the FCA. It uses trusted low-risk local banks to store your money—for example in the UK it uses Barclays. If Transferwise became insolvent your money would be unaffected and will be refunded within 10 working days.

However, Transferwise isn’t as secure as a normal bank because your money is not guaranteed by the Financial Services Compensation Scheme (FSCS). If the bank where Transferwise stores your money (i.e. Barclays in the UK) were to become insolvent then you aren’t guaranteed the return of your funds (usually you’d get up to £85,000 back).

Because of this I don’t recommend storing huge amounts of money for a long time in your Transferwise Borderless account. I feel confident keeping small amounts in it for a month or two, as it’s extremely unlikely that the banks they use would become insolvent. It won’t replace your existing bank account but can be used alongside it. 

Back to Contents

Summary

The Transferwise Borderless account has solved a major problem for digital nomads and freelancers like us who earn money in different currencies. It has saved us a huge amount in exchange fees and means we no longer have to deal with antiquated cheques.

If you get paid in multiple currencies I definitely recommend giving it a try—you can sign up here

Transferwise is also useful for anyone who transfers money from one currency to another—their fees are lower and more transparent than banks and it’s easy to use. You don’t need to sign up for Borderless to make a transfer. If you sign up here, you’ll get a free international transfer of up to £500.

If you enjoyed this post, pin it for later!

One of the biggest questions that face digital nomads is how exactly to get paid without incurring a ton of fees. Check out our Transferwise Borderless Review to see if this is the right tool for you.

Are you planning your next adventure? See our Travel Resources page for our favourite tools and gear to help you plan the perfect trip. 

Back to Contents

  • Share:

Enter your email to sign up for our monthly newsletter and free ebook South America Highlights.

22 Comments

  1. Unfortunately it’s no longer possible to add a US bank account to a UK Paypal account. I tried this week and was told that they have removed Transferwise from their list of acceptable US accounts. Maybe too many people we trying to avoid hefty Paypal fees. It’s a shame!

    Reply

  2. Hi There, Do we know if other currencies beyond GBP/USD/EUR/UAD are going to be added to the Borderless account – for example CHF ?

    Reply

    • I think they plan to but I don’t know what or when. I recommend contacting Transferwise to ask them – the more requests they get the more likely they are to add it.

      Reply

  3. Why the hell Brazil is not on the list of countries that can have a TBA. Always, of course, our damn country is left out due bureaucracy, language barrier an all the other issues…tired of living here!

    Reply

  4. Hi there…I had already opened a borderless account with Transferwise only this month ..before I read your story, so it is good news to hear it works so well for you. One quick question was your reference to using it to pay monthly direct debits??? If I understand that correctly does that mean you can use the account o also pay monthly payments such as insurances for example??

    Reply

    • For our monthly payments we don’t use direct debit – we give our card details to the company and they charge it each month like a credit card. It doesn’t look like Transferwise can be used for direct debits yet but they are working on it.

      Reply

  5. I am a South African working remotely for an American company and dating a European (complicated I know :D). I get paid in USD via PayPal who I loathe. Unfortunately I can’t figure out a way to transfer the USD to Transferwise so I can send the money to my girlfriend in Netherlands/Germany at a reasonable rate.

    If I had a US bank account I’m sure this would work but I’ve heard it’s impossible to setup as a foreigner. For now it seems I have to use this useless rent-seeking PayPal service until I can find a solution.

    Reply

    • Have you set up a Transferwise Borderless account? It seems that South Africans can and then you can get US bank details. If you are able to link that account to your Paypal account (I did it by phone as described on this post), then you can avoid any Paypal fees. Good luck!

      Reply

      • Yes I have a borderless account but unfortunately they only provide bank details for EU, UK and AUS so it seems I’m outta luck?

        Reply

        • Hmm, that’s strange. Maybe contact them and ask if they are planning to offer US bank details for South Africans.

  6. Hi Erin,
    I’m curious if you have set up a self-employment or limited company and if you are using the regular Borderless account to receive payments (as the business Borderless does not provide Debit card at the moment). I’m about to set up a business (limited company) either in Ireland or Estonia (for working as developer and later on for other entrepreneurship projects) but for both scenarios I’m supposed to open a bank account at local bank (Borderless Buiness can also work as I was told).

    Reply

    • We are self employed (with a partnership of the two of us) and not a limited company so we don’t bother using business bank accounts. We just have the individual Borderless account.

      Reply

  7. Thanks loads. I use Transferwise to transfer money from my UK bank to my Spanish bank and it is cheap, efficiently quick and any problems, the contact centre is brilliant with the right advice.
    Ill certainly open this bank account and hope they extend out to Asian countries soon.

    Reply

  8. Thank you so much for all the awesome advice. I’m totally new to the concept of Fintech, but I think it’s awesome (since I’m now living in country number 4!). I’ve done lots of reviewing over the last few days to see which company I should go with, so thanks for your review. I’ve also just downloaded the Trail Wallet app in preparation for a big Eastern Europe trip I’m doing in 6 months time – what a great idea! Thanks 🙂

    Reply

  9. First time I’ve heard of this and it’s amazing! More people should know about Transferwise. Thanks for the last bit about our accounts not being guaranteed though. Keeping small amounts is a good workaround.

    Reply

    • I know, I really want to spread the word as it’s so useful! It is saving us so much money in exchange fees (and the hassle of dealing with annoying cheques).

      Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.