Banking + credit card combinations [2024 edition]

So you can see where your money is wasted for? :wink:

For me, clearly interest. 0% at ZKB vs 1% at Yuh. For normal salary account. Yes you can get some better deals with saving accounts but money on my account comes and goes frequently, so saving accounts are not an option.

I don’t see any waste. As I said it’s free account.

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Yes if you need more than 10K withdrawal per month then ZKB savings account won’t work. That’s the limit per month for “flexible withdrawal “. In that case Swissquote has better deal (25K per month) and 1% interest

But of course Yuh is fine too

Main point is that for my needs , brick and mortar free accounts work. But it doesn’t always mean it works for everyone.

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Its not free if you look at the big picture and lost opportunity costs (0 interest). Yes it’s still a decent option in my opinion (ZKB), but just not the best.

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How long is your salary laying around on your account and how large is it?

My salary is on my account for 2-3 days every month, let’s say 40 days a year. I get aroumd CHF 10k net every month. So with 1% interest that’s CHF 11 per year. So that’s not really an argument for me personally. The opportunity costs of letting my salary lay around on my account is way higher than that.

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You want to have a free account, xy% savings, it should have unlimited guaratee in case something happens, it should have one of the best e-banking/app access - best case low salaries of employees and 24/7 here for your. Do you realize something?

It’s in your responsibilty if you have opportunity costs or not. For me, I do not want to have an savings account/emergency account at the same bank anyway, therefore I get my 1.3% p.a. somewhere else.

Same situation as for @Burningstone ; all my financial liabilities are timed to be executed at 26. of a month - after all these deductions, I just keep ca. CHF 1k on the private account (e.g. buying/sending money through Twint).

The real costs in your life are not e.g. CHF 11 p.a. bank account fees. Optimize other stuff as taxes (e.g. 2nd pillar contribution, IF that makes sense for you personally), rent, electricity, interenet at home and mobile, homeowner’s insurance and personal liability, legal protection, basic and supplementary insurance, entertainment (e.g. Netflix), mobility (e.g. SBB, car, car insurance, gas/electricity) etc.

If you are not willing to pay xy for a service, this is absolutely fine and your choice. But I am wondering, which option in your eyes is the best option.

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Not sure whether I had this discussion already with you or with someone else from the forum in this thread. But no, I don’t pay bills the day after I get the salary, if the due date is 20 days later.

And no, its not a ‘lost opportunity cost’ if I have the money on my account during that time, since the alternative would be paying the bill immediately so it lands on someone elses account.

All together I get ~ 50CHF in interest per year.

Doesn’t change my life, but if I have two equal options and one offers 50/y, I’ll take that.

Please elaborate where this is not the case for the solution I proposed (Yuh)? Except of the ‘unlimited guarantee’ (useless imo, since I surely don’t keep >100k on there) of a cantonal bank, I cant see it.

Those brick and mortar banks have some (subjective) advantages as well, so that I would probably suggest my parents to stick with them. (Known for long time, a real person there etc.)
For me this is not the case as I don’t need these things, and rather keep more interest.

From experience, traditional banks offer advantages that are more tangible than subjective. Over time, by consolidating various services such as your salary, savings account, third pillar, and mortgage within the same bank, you can obtain significant benefits. For example, some traditional banks offer reductions on mortgage interest rates if you consolidate your third pillar along with your private and savings accounts with them. A 0.10% interest reduction on an amount of 500´000 to 700´000 CHF is significantly more advantageous than an increase of 0.2% or 0.3% in the savings interest rate on amounts of 10’000, 50’000 or 60’000 CHF. However, everyone is free to choose services according to their preferences and needs.

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Neither do I, all my fixed bills are due at the end of the month incl. the credit card bill (which covers all my variable costs).

Otherwise I’d totally agree with you, paying bills to early would be lost opportunity costs.

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Yes, agree that in the case of mortgages this can make sense. Lots of money being moved here, so the full picture should be taken into account.

I would defnitely calculate it through again if I need a mortgage and might switch to the best offer/bank then. But since its easy to switch bank once this situation comes up, this is not part of my current pro/con assessment.

Apart from mortgage, I havent seen a beneficial scenario yet, as the most attractive 3a offers (low fee, high investment % possible) are currently with separate providers (Finpension, VIAC, Frankly,…).

I’ve never gone with the banking packages. Anyway I looked at it, it was always cheaper to avoid the expensive credit card and go for the basic offering. I’m with UBS and did the following:

  • UBS basic personal account
  • Have small mortgage with UBS to get reduced fees
  • Have just the basic card for withdrawals so you don’t pay the Maestro/Visa/Mastercard fee
  • Paperless statements to avoid the paper surcharge
  • Don’t go with the UBS credit cards, instead:
    • Revolut / Wise for foreign transactions and oveseas ATM withdrawls (I’m not sure if these are still the best cards out there, I don’t really use them enough overseas to spend time on it.
    • I use Certo One for all other Swiss expenditure. You currently get 50 CHF signing bonus and up to 1% cashback (see: the poor swiss’ review)
  • Do FX transactions via IBKR to get best exchange rates and low fees and then load these onto the revolut card (may need to go via a bank). This can be cheaper than converting with Revolut/Wise directly.

A few times the bank tried to get me to sign up for the banking package to ‘save money’ but you save only relative to getting all their other individual parts separately esp. the credit card with high annual fees.

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That may be true, however from my experience people stick to their homebank and are happy with the discount they get, rather than shopping around for mortgage. Back in the days when I was still at UBS and needed a mortgage they confirmed that UBS could not match the offer that I got from Swisscanto.

As long as your home bank can match any external offer, it’s obviously fine to stay at your home bank but to be honest there is no gain of having the mortgage there as well.
The additional effort of having a mortgage from a different institute is only paying a bill and have some paperwork at renewal.

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How do you do this without receiving a “currency conversion warning”?

Apparently, many receive this warning when they use IBKR just to convert currency: interactive-brokers-currency-conversion-warning

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I’ve never received that warning. But then again, I’m just withdrawing small amounts for expenses. I’m not depositing 500k, converting 500k and then withdrawing 500k.

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