The subject of Raiffeisen shares has come up from time to time but I wanted to have your opinion on the risk associated to them as girlfriend and brother are turning to it on my advice.
To sum up, if you live or work in the region, the regional Raiffeisen banks offer the possibility of buying shares at CHF 200 per share up to a maximum of 10k or 20k depending on the bank. These are remunerated at between 2 and 3%. As a member, you are free of charge for current and savings accounts. In my experience, after a move, you can keep your old shares, which allows you to accumulate memberships and thus benefit from the 2-3% on larger amounts, which is, in my opinion, a good way to store your money in an environment with zero interest rates. Moreover, most of the time, there is no notice needed to resell your shares, so the money stays liquide.
The major risk is the bankruptcy of Swiss Raiffeisen, which I am not worried about. However, is it fair to assume that, in the event of a financial crisis, the banks can block this money in order to maintain sufficient equity capital and avoid a massive sale of shares? Is there any other reason not to hold lot’s of money in that way?
I just wanted to get your opinion before advising myself, family and friends to buy more shares
Thanks a lot