More banks, loyalty is expensive: with separate suppliers you save (cross-border guide)

Context

In a nutshell

• The Swiss are loyal to their reference banks, but loyalty is expensive.
• With separate suppliers you save money.
• The analysis calculated the total cost of the main Swiss lenders.
• The result is a wide range of offers, with the most expensive approaching a thousand francs.

Key facts

• The most convenient institution for those who want to keep everything centralized is Banca Migros, with an annual cost of 491 francs.
• They are followed by the Cantonal Bank of Zurich (ZKB) with 597 francs and Valiant with 607 francs.
• PostFinance (CHF 736), Raiffeisen (CHF 821) and UBS (CHF 964) are more expensive.

The Swiss are notoriously loyal to their reference bank, but this loyalty comes at a steep price. This is revealed by a study published today by the online comparator Moneyland.ch, which analysed the total costs of the main Swiss credit institutions, concluding that it is better to diversify.

The analysis carried out on nine large banks calculated the total annual cost for those who use a single institution for the main services: private account with debit card, savings account, credit card, card use abroad and social security solution for pillar 3a. The result is a wide range of offers, with the most expensive approaching a thousand francs.

According to the analysis, the total annual cost for the main services varies greatly depending on the chosen bank. Banca Migros, for

Operational details

Research shows that dividing services among multiple operators is convenient. Choosing the cheapest supplier on the market for each individual product not only reduces costs, but can even achieve a positive balance of CHF 229 per year, thanks to interest income and bonus programs that exceed the expenses incurred. The phenomenon is not new, but it is gaining ground across Switzerland. In Basel, for example, research conducted by a financial advisory agency found that citizens of this city saved around CHF 150 per year, after choosing to use a separate provider for each service. In Geneva, on the other hand, the savings were around 200 francs per year. But how does all this work? First, it is important to note that choosing the cheapest supplier is not always easy. There are many factors to consider, such as quality of service, data security, and distribution network. However, if you choose to use a separate provider for each service, you can save significant amounts. For example, if you choose to use a current account provider that offers an active interest of 1.5%, you can save about CHF 100 per year compared to a provider that offers an active interest of 0.5%. If you choose to use an insurance provider that offers a lower premium, you can save around CHF 50 per year. But how can you - Evaluate the quality of the service: evaluate the quality of the service offered by the different providers and choose the one that offers the best quality. - Evaluate data security : Evaluate the data security offered by different providers and choose the one that offers the best security.

Useful planning tools

To estimate your pension strategy, use the pension planner and the pillar 3 simulator.

Key points

Ralf Beyeler, financial expert at Moneyland.ch, recalls that it is absolutely possible to keep some products at your main bank and choose cheaper suppliers for other services. The game is worth the candle: the savings margin varies significantly depending on the segment. While for the private account - often free without additional services - the potential is zero, for other products chasms open up.

The biggest savings focus on pillar 3a: by changing the provider of your pension plan you can save between CHF 395 and CHF 740 per year compared to the traditional bank rate. Under 2022 rates, for example, a customer of a Lugano bank who chooses a separate provider for their pension plan could save up to CHF 740 per year. If you consider that this amount of money is invested over a long period of time, the savings can be significant.

In addition, it is important to consider saving on current account management fees as well. For example, one bank in Zurich might charge a handling fee of CHF 25 per year, while another provider might offer the same fee at CHF 10 per year. In this case, the savings could be 15 francs per year.

Here is a checklist to evaluate the possibility of saving with separate suppliers:

• Check the rates of banking services and try to

Check tax deadlines for cross-border workers: returns, Swiss declarations, rebates — all dates in one interactive calendar.

Source: swissinfo.ch