0% would be very surprising to me, then there would be no need for any MMF / bond funds with a CH domicile and banks could offer the funds for foreigners and CH residents from Luxembourg.
1.3% is before tax? That return is added to your income & taxed at your income tax rate, right?
Not sure about the size of your emergency fund, but if <100k, and for approx. 1.3% interest why not âsimplyâ go for an account at Radicant and/or wiLLBe, paying 1.25-1.3% p.a.?
Some will judge the MMF at IB âsimplerâ than another bank account/app to follow up on? Is that it?
Simpler yes and directly attached to SNB rate. I guess currently not too important but when the interest rate rose you could directly get higher returns in the MMF whereas the banks tried to hold onto zero interest rates for as long as they could. My regular bank offers 0.75% and that is also taxed so there is still a significant advantage.
Ah thanks, just trying to understand different options. Thatâs certainly a valid reasoning / plus point.
Also, I suppose you donât have to âshop aroundâ regularly, because wiLLBe or Radicant may be OK now, but not decent in a year or two, whereas MMF will be always attached to SNB rate.
Yes most banks are not passing on better interest.
A lot of them are expecting lower key interest rates in the foreseeable future.
I can imagine, that some of them want to stick to continuity - and not offering a roller coaster of interest rates.
I have checked Money Market Funds in CHF. The most complete list happened to be at
Here is the list of Money Market Funds in CHF which are available at IB. At least I can open the quote window and I am not getting any errors with the order preview.
Name / ISIN / IB ID
Pictet CH - Sovereign Short-Term Money Market CHF P dy
CH0038724818
I433066958
Pictet CH-Short-Term Money Market CHF -P dy
CH0011292312
I433079228
Pictet CH-Enhanced Liquidity CHF -P dy
CH0021732604
I433081456
Pictet CH - Short-Term Money Market CHF I dy
CH0011292304
I433082043 Class for institutional/qualified investors. My purchase order was accepted, but I wonât be surprised if it fails at later stages.
LO Funds - Short-Term Money Market (CHF) MA
LU0995143962
099514396
LO Funds - Short-Term Money Market (CHF) MD
LU0995144002
I453296346
The next two funds have shown me 0 comission for a 3000 CHF order, but TER is like 0.1% or more above that for other funds.
LO Funds - Short-Term Money Market (CHF) PA
LU0995143533
099514353
LO Funds - Short-Term Money Market (CHF) PD
LU0995143616
I453296355
There are few other funds which I find and can open the order window, but the order preview comes with
Commission (EST.) NA
Total NA
According to, for example, the Pictet CH fund prospectus, they are not for mere mortals.
Now it would be not bad to figure out if CH domicile is advantaged for CHF MMF. Spontaneoulsy I would say yes, but I donât have knowledge to be certain.
As a next step, I would dig into their performance in 2023 and what percentage of it is taxable (ICTax). However I am not sure that I have time for it now. If you are interested to perform such analysis, please go on.
I also not completely sure that there are no fees from the side of the fund management upon subscription and redemption, but it seems to be that there are none.
It would make life much easier if one can buy Money market fund at the same bank where salary comes.
The challenges are that even though Top Swiss banks have MM funds (UBS/ZKB) , their custody fees and commissions would erode a significant portion of the earnings. So the only good options would be IBKR / Swissquote. Am I right?
Just wanted to be sure I am not missing a trick where if you buy Swisscanto MM fund then ZKB wouldnât charge the custody fees.
One interesting point
I saw Swisscanto (CH) has zero taxable income while Swisscanto (LU) has taxable income (0.65 per share) for 2023
Any idea why would that be?
Another problem -: Swisscanto (CH) is not available to buy anywhere it seems. I canât find it on IB and also not on Swissquote. Where can anyone actually buy those ?
Itâs liquid and has no limits, savings accounts often arenât. (Also it took a while for banks to raise rates while MMFs follow the rates closely, up and down)
The rates by bank are often times only temporary and you dont want to hop around banks all the time. MMF more or less five you SNB rate -cost. Also no transfer limits etc.
Just beware of negative interest, if we are ever going there again. Than a bank with 0% is obviously preferred.
Going through this topic and for a newbie who has never entered the money markets what would be a simple fund on IB to invest like 50k for a 12 months horizon that would not incur much taxes ?
What are the buy and sell fees of the broker (for exemple: IB) to invest in the funds ?
Iâm just wondering for which amount, it makes senses to invest in a money market fund instead of keeping it on a saving account
thanks but term deposit will have the entire interest amount taxed while these funds might only have the coupon part getting taxed
again trying to thread the needle to optimize for best returns on parking some cash that is not invested in stocks
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most banks are not passing on better interest.