Wednesday, November 06, 2013

Swiss Bank Charges

It's more of a British joke but remind me in financial terms what rhymes with BANKER  

Well I thought I'd seen it all when my Swiss Credit Suisse bank sent me a little note.

Seems like they will be increasing the charges for my banking services. (1.5 CHF is about 1 GBP GB Pound)

Next year they warn me that regardless of my balances, let's say for example 70,000 cash deposits, they would like to charge me

60 CHF yearly for a Current Account
50 CHF for a Banking Card

But wait, there is more ... they recommend I switch to Bonviva Banking to avoid individual banking fees

I studied it and so can you  (click to enlarge)

If you take the mid tier Gold service they want you to pay

  • Regardless of your bank balances
  • 480 CHF for the bank account  (320 GBP)
  • Includes a Credit Card and a Debit Card!
  • 0.75% interest rate on the saving account  (quite good for CH actually)
  • Free withdrawals at other e.g UBS bank machines in Switzerland
I rang the helpline and was astonished to find that on the current plan I get charged 2CHF  (1.5 GBP) per withdrawal for non Credit Suisse machines.  And since there is only 1 in the whole of Lausanne.  Well, quite likely then!

If I pick the best account, Platinum, they will charge me a staggering 960 CHF per year (680 GBP) for banking and debit/ credit cards

So what do I think?

  • Swiss banking is unbelievable, but not necessarily in a good way!
  • They have high charges
  • And on current accounts almost zero interest and on savings accounts mediocre interest
  • They jump to charge you for withdrawals at other banks ATM's even when they have practically none of their own, and none abroad (UK for example)

As I said unbelievable.  This kind of mentality makes one realise why retiring in Switzerland, really, really requires a lot of money.