For Canadians sending money abroad, exchanging currency, or spending internationally, the choice between Wise and a traditional Canadian bank has significant financial implications. This comparison looks at real fees across the most common use cases in 2025.
This is where the difference is most dramatic. Sending money from Canada to a foreign bank account costs:
| Provider | Transfer Fee | Exchange Rate Markup | Total Cost on $2,000 CAD |
|---|---|---|---|
| Wise | ~$7–15 CAD flat | 0.5–0.8% (transparent) | ~$25–35 CAD |
| RBC | $13.50 wire fee | 2.5–3.5% rate spread | ~$65–85 CAD |
| TD Bank | $25 wire fee | 2.5–3.5% rate spread | ~$75–95 CAD |
| Scotiabank | $15–25 wire fee | 2.5–4% rate spread | ~$65–105 CAD |
| BMO | $15 wire fee | 2.5–3.5% rate spread | ~$65–85 CAD |
On a single $2,000 transfer, Wise typically saves $40–$70 versus a major Canadian bank. On repeated transfers (for rent payments, family support, regular bills), this compounds into hundreds of dollars per year.
Both Wise and banks use the mid-market rate as a starting point, then add a markup. The difference lies in how transparent and how large that markup is.
On $100 CAD converted to USD:
| Feature | Wise Debit Card | Canadian Bank Debit (e.g., RBC) |
|---|---|---|
| Foreign transaction fee | 0% (spend from local currency balance) | 2.5% typically |
| ATM withdrawals abroad | 2 free/month up to ~$350 CAD equiv. | $3–5 CAD flat + 2.5% conversion |
| Exchange rate | Mid-market + 0.5–0.8% | Bank rate (2.5–4% worse than mid-market) |
| Card acceptance | Mastercard — worldwide | Varies; Interac not accepted abroad |
| Currencies held | 50+ currencies in one account | CAD only (conversion at point of use) |
Wise is not better in every scenario. Canadian banks have advantages that Wise does not:
Deposits at Canadian banks are insured by the Canada Deposit Insurance Corporation (CDIC) up to $100,000. Wise accounts are not CDIC insured — Wise holds customer funds in trust in a segregated account but this is not the same as deposit insurance. For larger balances, a bank account is safer.
When something goes wrong — a fraud alert, a large transaction that needs verification, or an urgent need for cash — having a branch you can walk into is valuable. Wise is online-only.
For everyday Canadian spending, transfers between Canadian banks (Interac e-Transfer), bill payments, and direct deposits, your Canadian bank account is still necessary. Wise is not a replacement for your primary Canadian account — it is a supplement.
Wise does not offer mortgages, loans, GICs, credit cards, or the full suite of financial products that Canadian banks provide.
The optimal setup for most Canadians in 2025 is not Wise OR a bank — it is both, used for different purposes:
This combination eliminates virtually all unnecessary currency conversion and international transfer costs.
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Get KOHO Free — Use Code 45ET55JSYAFor international transfers and travel spending, Wise is significantly cheaper than Canadian banks in 2025. The savings on a $5,000 international wire can be $150–$250 compared to what TD or RBC would charge. For domestic Canadian banking, keep your existing bank account — Wise is not a full replacement.
If you send money abroad regularly, travel frequently, or support family in another country, setting up a Wise account takes about 10 minutes and can save you hundreds of dollars per year with no ongoing cost.