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On May 1, Wise is changing its ATM limits and fees. The short summary is that things are getting substantially worse, with the free withdrawal limit changing from $350 CAD to $100 CAD. The variable fee and fixed fees for withdrawing cash at ATMs are going up, as well.
For the past few years, Wise was my go-to solution for withdrawing cash abroad. I was already using it to exchange Canadian dollars to other currencies, so it’s easy to keep the card with me when travelling internationally as an all-in-one solution.
Late last year, I switched to Wealthsimple for reimbursed ATM fees, and I urge anyone on the fence or dragging their feet to make the switch before May 1.
Wise’s ATM Changes
To be frank, Wise’s ATM withdrawal limits are getting a lot worse. Now, $350 CAD in free withdrawals isn’t a ton to begin with, but $100 CAD makes it virtually unusable for an international trip.
I used to combine my $350 limit with my partner’s $350 to make it work with free withdrawals, but $200 CAD combined basically means Wise is no longer viable as my primary ATM withdrawal method.
Wise also limits monthly withdrawals to 2, so you’d be charged fees for withdrawing 3 times a month even if the total cash withdrawn is under $350.
As if lowering the withdrawal limit wasn’t bad enough, Wise is increasing the fees charged for additional withdrawals, too. For every withdrawal over the limit of 2 per month or $100 CAD, you’ll be charged a 2.69% fee, increased from 1.75%. The fixed fee per withdrawal is increasing from $1.50 to $2.69. Full details are on the Wise website.
Now, it’s clear that Wise wants to move away from ATM withdrawals as a primary feature — which is fine, because there’s an easy alternative for Canadians.
Switch to Wealthsimple
Before these changes, I’d say you should still move to Wealthsimple purely because Wealthsimple reimburses ATM fees and Wise doesn’t. If you don’t usually withdraw a lot of cash, I could see the case for just sticking to Wise to keep it simple, especially if you’re already using it for other things, and just pay a few dollars in ATM fees for the sake of convenience.
In fact, that was me up until late last year when I finally signed up for Wealthsimple and set up an account. But with the changes coming May 1, I’d say it’s crucial to switch now to Wealthsimple for international ATM withdrawals.
$100 CAD isn’t much, and paying 2.69% plus $2.69 per withdrawal is steep. Opening a Wealthsimple chequing account takes only minutes, and the debit card arrives in the mail soon after. Funding it is just as easy as Wise with instant Interac e-Transfers.
The quality-of-life improvement from reimbursed ATM fees really cannot be overstated. I’ve travelled through the Philippines, Taiwan, and Japan over the past few weeks, and being able to use any ATM without worrying about fees or needing to withdraw a large amount at once is a game-changer.
Wise Still Has a Purpose
While Wise may not be the best option for withdrawing cash abroad, it still has its strengths, and I’m keeping my account open.
Wise is excellent for exchanging currency, and I primarily use it to convert Canadian dollars to U.S. dollars. Funding it via Interac e-Transfer usually takes under 30 minutes, and transfers to my U.S. bank account often arrive within minutes. The process is seamless, and I highly recommend it for currency exchange.
Another feature I like is the ability to open local bank accounts in supported countries. Once, I needed to receive a refund for a concert ticket in Europe, and the only option was a bank transfer. I opened a Wise account in seconds and received the funds there. You can then transfer it anywhere else, including your Canadian bank account.
While travelling, I’ve also encountered situations where only cash or a bank transfer was accepted, and there were no nearby ATMs. In those cases, I simply load my Wise CAD account and send the payment via international bank transfer.
Takeaway
Wise is no longer the best option for withdrawing cash abroad. The monthly free withdrawal limit has dropped from $350 CAD to $100 CAD, while the variable fee above that limit has increased from 1.75% to 2.69%. The fixed fee for withdrawals beyond $100 or more than two withdrawals per month has also risen from $1.50 to $2.69.
For Canadians, Wealthsimple has become the clear alternative. With reimbursed ATM fees and easy funding via Interac e-Transfer, it’s one of the best options for withdrawing cash internationally without worrying about extra charges.
While Wise remains excellent for currency exchange and international bank transfers, Wealthsimple has effectively become the superior solution for withdrawing cash while travelling.
