I can’t answer for others, but for me, it’s not having a lot of cash. Just enough to cover any bills.
The average account balance is for convenience, not an asset I expect returns on.
My house bank has withdrawal limits and penalties on the saving account, but upon asking about that said it won’t be enforced. Yet even the saving account interest will not show up in a list of best interest rates.
NA stands for “Not Applicable”: there are no restriction. I also don’t like being limited, so it’s out of question for me to go with anything that has strong restriction. That’s why I added it and color coded this way; usually, the more interesting rates are coming along significant withdrawal restrictions
I have a low amount on my private account (always ca. CHF 1’000), since I am paying everything with credit cards and therefore do not need a large amount on my private account. Some CHF to twint here and there. This is with ZKB and I do not intent to change the bank, since the e-banking is top notch, never had issues with them and they provide a free banking account incl. free debit card and the shared account with my gf is with ZKB as well.
At Neon I have a very low amount as well (ca. CHF 200-500), only used for FX payments. Prior holidays I transfer some more cash to Neon. Also no intention to change to another provider. Have been at Revolut, but I feel more comfortable with a Swiss bank behind it.
With Interactive Brokers there are only some leftovers from converting money into USD to buy securities. Always < CHF 100. Beside the UK-entity, I have also an US-account with them. No intention to move to another provider, but I can imagine to have a Swiss provider additionally, where I move my assets (e.g. Saxo). So, buying at IB, but transferring all CHF 250k or so to Saxo. Call me paranoid.
My biggest cash amount - my emergency amount - is at WillBe, currently ca. CHF 35k and rising. I am aiming to have a solid amount (ca. CHF 50-100k) always liquid. It may be a lot, but I feel safest and I am willing to take this opportunity costs.
At the moment, WillBe has for me the best conditions to keep my money there. But I am pretty illoyal toward banks and I am ready to move to another bank if there are sustainable better conditions. I am not changing to another bank if I expect them to change the T&C soon.
I follow the identical rules as @Balaclava , emergency fund must be a different and reliable institution.
Also very situation specific, but for what I’m concerned:
I want to have good conditions when travelling (low fees)
I want to have access to my money at anytime
I want to avoid having 20 accounts to manage
Hence I decided to go for one neon account for daily use and one Radicant account for cash. I chose Radicant over WiLLBe because of the Visa card they provide, which I can use in case there is any issue with the Neon Mastercard. I could add another account for better returns on a portion of my money, but I’m too lazy for that (cf. point #3)
EDIT: I’m actually in the process of doing that and get away from PostFinance, so that strategy might still evolve depending on how the conversation go
For me, cash is high liquidity and low returns. I don’t need a lot of high liquidity (but I do need some) so the amount of interest that could be gained by shopping around is, in my opinion, not worth the time I would spend doing so.
So, option 2: find reasonable providers and stick to them.
I would shop around for medium term notes, which is no liquidity, acceptable risk-free nominal returns in my mindframe.
We’re currently looking for an additional bank to keep term deposits with. Seems the range will be around 1.2% for 1mo duration (we’d like to roll), have you seen any higher offers recently?
Have not seen very good offers recently, but as a very safe option (with state guarantee) for companies, I like SZKB’s offer: Deposit-Konto - Schwyzer Kantonalbank
Relatively high difference to SARON, but much better conditions than other cantonal banks (or even non-cantonal banks without a state guarantee).
Ah, I see. Well, they need to make money in some way.
I wouldn’t park significant amounts of money with neon anyway, but I’ll gladly profit from the cheap foreign card transactions and free transaction fee for buying an FTSE All-World with no custody fees.
That was already the case, wasn’t it? Neon offered 0.9% up to 25k.
The Raiffeisen in my region offers 1.1% up to 50k, then 0.7% from and above 50k.
The 20k is the maximum quarterly withdrawal limit without having to pay a withdrawal penalty.
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