Deposit charge on Swiss franc and euro account balances

Banks, Insurances & Third Pillar
1

Hi folks, just got this from UBS, I thought you may want to know.

P.S.: for private customers it applies from 250k + some other assets, but I doubt any good mustachian here has that amount sitting in cash :slight_smile:

Dear client,
The conditions on the money and capital markets remain challenging. Account balances in Swiss
francs and euros have received little or no interest for quite some time now. We expect this
period of low interest rates to continue for some time. It is becoming increasingly difficult
for banks to absorb the economic consequences of negative interest rates.
Banks therefore have started passing on the negative interest rates to their clients some time
ago. We too can no longer escape this development and because of the extraordinary interest
rate situation find ourselves compelled to introduce deposit charges for balances over certain
thresholds from 1 July 2021. Details about these conditions can be found in the supplementary
sheet “Deposit charges”. All other conditions remain unchanged.

2

Isn’t 80/20 or 60/40 a pretty standard investment split?

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3

I’d actually be interested to hear about the way the more wealthy among us are invested. I’m guessing fixed income coming from 2nd pillar first, then cash, then bonds? How conservative/agressive is your own asset allocation?

4

Maybe mot around here.

This is the place of be-in, all-in.

5

Honestly when I see the amount of FOMO and people who assume 7% return from stock market is like something guaranteed sometimes I wonder :slight_smile:

Stock Market Returns Are Anything But Average - A Wealth of Common Sense is a good reminder what stock market return means.

I’m fairly conservative (by the forum standards…) 65/35 (35% being pillar2+cash). I’m there for the long run, not a quick gamble :slight_smile:

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7

You mean 65/35?

Because 75+35≠100 :point_up:

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8

Indeed, fixed :slight_smile: or maybe I’m 110% invested :slight_smile:

9

If you use UBS to get those 10%, can you collect negative interests on them and actually get paid for it? (y’all have to admire my flair to get back on topic. Diverting it? Sure! Getting back on it? Well… I mean… eventually, it was bound to happen.)

And while I’m on topic (for a change), assuming the thresholds keep getting lower in the future, that could make bonds (or mattresses) more sexy again.

Also, funny that UBS doesn’t communicate a fixed thershold but states that “3) A deposit charge may be levied depending on the amount of the credit balance. The applicable terms and conditions are available on request.”

10

I think it’s the case for many banks, if you generate lots of revenue (e.g. with expensive fund investments) they might be more lenient :slight_smile:

13

12% of nw in bonds via 2 pillar offset by -7% mortgage debt so 5% net debt assets. Cash ~zero

Ray Dalio’s analysis “Changing world order” captures my opinion about bonds and cash.

I have approx 20% in investment property instead of bonds. Otherwise I am heavily in stocks. Having funds which focus on quality make me sleep a little better at night. These avoid speculative stocks not yet earning high profits or ROCE (e.g. Tesla) and cyclical stocks

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14

Can it be read somewhere on the internet?

I see he has a book with this title due for release in August.

15

Search for “ ray Dalio new world order LinkedIn”. It’s free to access there

a long read there are several chapters! the first 2 or 3 were crucial for me to understand better what is going on right now and history of gold etc

Edit: Here is the first part

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