Neon Negative Interest

Hi guys,

above 99tsd CHF you need to pay negative interest to Neon Bank. What do you do? Recommendations?


Don‘t keep more than 99‘999.99 cash on a bank account.

There’s another reason: deposit insurance.


Not having 100k+ cash in a digital bank.


@Cortana: What if it were an analogue bank like yours though?

While I’m a big fan of Neon, Revolut etc. I wouldn’t ever use it for keeping 10k+ in cash.


Neon is backed by lenzburger kantonalbank though, not really comparable to revolut or any digital bank

Oh, I wouldn’t keep 2k+ at Revolut.


To be honest it is backed by a traditional bank so don’t see the Risk to it…

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Open free accounts at CSX, ZAK and YUH and transfer money there. (DM me for referral codes for ZAK and YUH.)

But why keep so much cash in the first place?

It’s not a Kantonalbank. They’re called Hypothekarbank Lenzburg. To my knowledge, the canton of Aargau is not involved.

They do have a bank license, though.


Is there another way to store XXXk CHF in a way that is both liquid and guaranteed to not lose value (ignoring inflation)?

Risk free rate for CHF is -0.75%.


You are objectively right, of course.
I just did not think that holding non-performing cash was still a serious thing on a FIRE forum.

Here’s my list of possibilities at the top of my head:

  • Spread money across different free accounts: ZAK*, Yuh*, CSX, Yapeal, Neon (* DM me for referral codes)
  • Keep money in your broker or credit card account up to the free limit (depends on the broker, DeGiro is 3000 CHF for instance) - you can pay more into your credit card account than you spend.
  • Keep money in a bank account that charges less for holding cash (e.g. -0.5% instead of -0.75%)
  • Store cash in a safe at home or in a bank, but calculate opportunity cost. Recurring cost should be below the negative interest rate on the money stored.
  • Put the part that goes above 100’000 in a term deposit (Kassenobligation).
  • Find a currency with an ever lower inflation or even deflation than CHF and find a bank where they don’t charge negative rates for that. (CHF apparently has the lowest inflation rate, so probably not possible).
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both liquid and guaranteed to not lose value

Bit of a stretch, don‘t you think? :wink:


what shall I say, I was in a flow and got carried away :smiley:

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If you want to bet that SNB will keep intervening to stop CHF appreciating you could park some money in Eur or even USD. Just saying it, I would not do this myself

Does ZAK apply a negative interest rate ?

I was also looking for this information and I could not find it in their factsheet so I just called them a few hours ago and they told me that they apply negative interest rates only for amounts over 1 million. I would still like to see that written somewhere though.

Thanks. I wrote to raiffeisen. They told me they don’t apply negative rates for “sociétaires”.

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