In this article I wrote a Guide to Selecting a Cheap Bank Account 😊
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Potential savings
By following this guide, I did my calculations and since switching banks, I save approximately 400 CHF per year. All for a simple bank card change. 😉
What do we need to understand about bank accounts?
Bank accounts are a business where prices change depending on various factors.
Indeed, when I am offered a bank account, I first look at the fees, then the services offered.
In this article, I share the pricing as well as the regulations that I find acceptable 😉
Bank cards – Pre-paid or Credit
When you open a bank account, you are often offered a prepaid card or a credit card.
- A prepaid card is a bank card that can be topped up, generally with low bank fees, and it's usually impossible to have a negative balance.
- Credit or debit card = bank card allowing you to request a loan from the bank, with fees and risks of debt!
For this article, As we look for the cheapest bank accounts, we favor prepaid cards.
Bank cards – Financial network
When we select a bank card, there may be different financial networks.
It is important to choose a recognized financial network, otherwise the card will not be accepted everywhere.
Therefore, in my opinion, There are only 2 brands of bank cards that I find acceptable in Europe:
- MasterCard
- Visa
Fees for maintaining the account open
Let's move on to the committees.
The first commission to analyze are the fees for keeping the account open.
This commission is also called a management fee.
I think that’Opening and holding a bank account should not incur any fees!
👉 In reality, the choice is very simple! The account maintenance fee must be 0 CHF per year.
Bank card fees
Then I look at the fees regarding the bank card (plastic).
👉 Again, it's simple, the commission must be 0 CHF per year.
Commissions related to withdrawals
Sometimes you need to withdraw money from an ATM to get cash.
👉 In my opinion, The customer must be able to withdraw cash without fees from any ATM. At least twice a month!
Fees for domestic bank transactions
When we have a bank account, we primarily carry out 4 domestic banking transactions:
- Payments
- Account to account transfers
- Bank transfers
- Bank transfers
Regarding commissions for payments and bank transfers within the country.
👉 The commission must be 0 CHF.
Fees for international banking transactions
Abroad, it is difficult to find an affordable bank account for international transactions.
In truth, it's very rare to find a bank that offers international banking transactions without fees. Therefore, choosing the right banks is crucial!
In my opinion, 1% should be the maximum requested regarding banking transactions abroad.
⚠️ Some banks advertise that payments abroad are free, but apply a very unfavorable exchange rate for the customer. As a result, don't forget to analyze the exchange rate applied by the bank account during international banking movements!
👉 In my opinion, the commission requested for international banking transactions (including exchange rates) should be a maximum of 1%.
Guarantee of 100,000 CHF in the event of bank failure
In Switzerland, the regulations are rather strict and the banks are supervised by FIMNA1. It is a financial transaction monitoring authority.
👉 Thus, Most bank accounts in Switzerland guarantee the first CHF 100,000 to the client in the event of bankruptcy.. And what's more, the banks are well monitored.
However, regarding a foreign bank account, further analysis is needed concerning the account's security in the event of bankruptcy.
Payment method
For my part, I remain from the old days and I only require 2 means of payment:
- A bank card (for paying abroad and in Switzerland)
- Twint
However, some customers demand that their banks also offer mobile payments, so they can pay virtually from their smartphones.
Nowadays, many banks offer mobile payments, but verification is required.
Conclusion
Here is a simple table to visualize a Guide to selecting a cheap bank account. With my price requirements.
| Bank Card Financial Network | Mastercard or Visa |
| Open account | 0 CHF per year |
| Bank card | 0 CHF per year |
| Cash withdrawals without bank fees | At least twice a month (at all vending machines) |
| National banking movements | 0 CHF |
| International banking movements (exchange rate included) | 1% maximum |
| Guarantee of the first CHF 100,000 in the event of bank failure | Yes |
| Payment method | According to the customer's wishes |
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Are there any bank accounts in Switzerland that meet these criteria?
Banks can change their services at any time. However, at the time of writing, here are two Swiss bank accounts that meet the criteria of this article:
- Wir Paquet Top
- Yuh
FAQ – Guide to selecting a cheap bank account
How to choose a cheap bank account in Switzerland?
To choose an affordable bank account in Switzerland, it's advisable to compare account management fees, bank card costs, withdrawal fees, foreign transaction fees, and included services. A good bank account should offer maximum services with minimum fees.
What is the best free bank account in Switzerland?
The best free bank account depends on individual needs. However, banks offering no account management fees, a free card, and commission-free payments are generally the most attractive for budget-conscious consumers.
What bank fees should you analyze before opening an account?
Before opening a bank account, it is important to check:
- Account maintenance fees
- Bank card fees
- Withdrawal fees in Switzerland
- Foreign payment fees
- Exchange fees
- National and international transfer fees
Should you choose a Visa or Mastercard?
Visa and Mastercard are the two most recognized banking networks in the world. For most users, the differences are minor. The most important thing is to choose a widely accepted card with low fees.
Are free bank accounts reliable?
Yes, in most cases in Switzerland. In Switzerland, banks are supervised by FINMA, and deposits are generally protected up to CHF 100,000 per customer per bank. Therefore, a free account is not necessarily less secure than a paid account.
How much can you save by switching banks?
Depending on the customer's profile, switching banks can save several hundred francs per year. The savings come mainly from the elimination of account management fees, free bank cards, and reduced fees abroad.
What is the guaranteed amount in the event of the bankruptcy of a Swiss bank?
In Switzerland, bank deposits are protected up to CHF 100,000 per customer and per banking institution thanks to the deposit guarantee scheme.
Which bank should I choose for traveling abroad?
For travelers, it's best to choose a bank with low exchange fees, convenient international payment options, and low-cost foreign withdrawals. The actual exchange rate charged is often higher than the advertised fees.
Should cash withdrawals be free?
Ideally, a bank account should allow several free ATM withdrawals per month. Withdrawal fees can quickly add up to a significant cost over a year.
Which are the best bank accounts according to the criteria in this article?
At the time of writing this article, the Yuh and WIR Top bank accounts meet all the criteria presented: reduced fees, free bank card, advantageous payments and services adapted to Swiss residents.
Guide to Selecting a Cheap Bank Account
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Compared to before, I was a person who consumed a lot until the day I realized that my consumption made me sadder and poorer 😑
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Are you rather minimalist or frugal Jonny?
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To conclude, I think the most important thing is to feel comfortable in your lifestyle 😊
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