Kassenobligationen / obligations de caisse / medium-term notes

you apply online and get the documents by post, identification can be done at the post office or a branch.

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Was looking at the Cembra possibility.
Looks interesting, yes.
I esp. like, aside from the competitive interest :money_mouth_face: that, in these uncertain times, “Die Kassenobligationen der Cembra Money Bank AG sind durch die Schweizer Einlagensicherung pro Kundenbeziehung bis zu CHF 100‘000.-- gedeckt.”

https://m.cembra.ch/en/products/savings/medium-term-notes/

the 2yr one is quite nice, but we’re currently seeing interest rate expectations go down again for the mid- to longer term. so i’m locking in the juicy 10yr yield (with mentioned 100k ‘insurance’) as a partial ‘hedge’ within my bond portfolio.

Actually it means that couples can open 2 individual accounts and get 200k CHF state insurance… without being accused of cheating :smiling_imp:.

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Small question: if I leave the country and move abroad, there is no way to recover the withholding tax, right ?

Nope, already had that issue…
But depending on the DTA, you can declare it in your residency country (kind of like the DA-1 in Switzerland)

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btw, response to another call i just made:

should the interest rate change after you applied online (time gap until documents received & returned and money transferred & note set-up), they’ll give you the better rate (if down => according to application date / if up => the new one).

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One downside is that the compounding doesn’t work here, because they pay the interest out yearly. :see_no_evil:
But that might be the case with all mid term notes, never tried any before.

And this still gets taxed as income, right?

that part is true for many fixed income instruments, and is comparable to an etf with dividends being distributed instead of accumulating.

yep

Anyone know of maximum interest cheap & liquid ultra-short term CHF funds (e.g. money market) I could buy with Yuh?

Not interested in 1 year+ funds, as I might need the cash asap. (minimum term risk)

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There are none, as far as I can tell. I don’t see a single bond or money market fund available. The most conservative investment seems to be the tracker certificate “Yuh Conservative Portfolio” with a 0.85% TER, in addition to 0.5% fees per trade.

The 0.5% - 0.75% p.a. interest on cash is the only option on this topic.

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Yuh account itself, no need to buy anything :joy:.

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Yuh it is then :+1::smile:!