Relationship status: assets seeking new bank

 
Saying goodbye is never easy. And we don’t mean saying goodbye to that once-promising Tinder match, not to that online purchase delivered to the wrong address, and most definitely not to your bank. In the latter case, after all, it’s about your hard-earned money. We explain step for step how to «consciously uncouple» from your bank (after all, no tears should be shed) and what you need to bear in mind when switching to your new bank.

If you wake up one day and realise that you no longer like your bank, chances are it really is the bank and not you. Maybe your bank has become more expensive, maybe it pays bad interest rates, maybe you feel that your trust has been betrayed by various scandals. There are many possible reasons for changing bank. Incidentally, one in four people in Switzerland are thinking about ditching their current bank. Here’s our checklist for a smooth changeover.

You’ve taken off your rose-tinted glasses and, if you’re honest with yourself, your relationship is simply one of convenience. Don’t be lazy – act now! But before you leave your bank forever, we strongly encourage you to think about what you want and don’t want in the future. Compare different banks’ interest rates, account management fees and ATM fees: it’s often precisely these charges that quietly eat into your hard-earned money. Far be it from us to play Cupid, but did you know that Yuh offers 1% interest on your cash, zero account management fees and free withdrawals once a week?

If only it was so easy: break up, withdraw your money and go your separate ways. Unfortunately, it’s often tougher than you expect to take this final step, as many banks mandatory notice periods of up to three months for account closures. You also have to comply with the withdrawal limits. Otherwise, you risk incurring penalty charges. As a general rule, accounts can only be closed once you have cancelled all your standing orders and direct debits. So, it is advisable to open an account with your new bank before you say goodbye to your old one. Some banks require written notice of termination. Many will let you go for free, whereas others charge admin fees of between 5 and 50 CHF. This is something we would never dream of doing at Yuh – when Yuhsers leave us, we may have to reach for the Kleenex to wipe away our tears, but we don’t have any special conditions or fees and your account will be closed within three months at most. You don’t even have to send us a farewell letter.

If you’ve spent enough time on points 1 and 2, you’re officially ready for the next step. It’s now time to open a new account. To start with, think about which kind of account you want to open at your new bank, which cards you will need (debit and/or credit) and whether you might want to open a pillar 3a account at the same time. Please bear in mind that the formalities involved in opening a new account can sometimes take up to a week to complete. No idea which financial services provider is currently making eyes at you, but we just wanted to point out that, at Yuh, you can open a no-fees account in just a few minutes. Plus, you’ll get a virtual debit card free of charge and 13 pre-installed currencies on your account. At Yuh, you can make payments, save, invest and – since a short while ago – even set aside money for your retirement in pillar 3a.

OK, maybe you shouldn’t reveal your new account details to the whole world, but there is a close circle of contacts around you that you definitely should keep in the loop. This includes your employer (if you care about receiving your monthly salary payments) and any other sources of income you have, the tax office, and of course everyone who sends you invoices that you pay via eBill or direct debit. These will be things like health insurers and other insurance companies, subscriptions, etc. You will also have to set up all your standing orders and automatic payments again. If the account changeover affects your credit card, you will have to update these details too.

If you have a TWINT account, this will still be linked to your old account. We recommend deleting the account. The procedure differs from bank to bank, so ask TWINT itself whether you can do this in the app itself or whether it would be better to contact TWINT Customer Care.

Your relationship with your new bank is already a month old and you’re happy? We really don’t want to spoil the fun, but now is the perfect time check whether everything is going well, whether your salary payments really are arriving in your account, whether your rent has been debited and your health insurance premiums paid, and whether all your other incoming and outgoing payments are correct, too. As you’re well aware: trust is good, but when it comes to money, oversight is better.

When all your money has been transferred from your old to your new account and everyone knows about your new bank and credit card details, you can finally call it a day with your old bank. In other ways, you can properly close your old account. The account closing process differs from bank to bank. Depending on the institution, you may have to call, write a letter or pop into a branch. The process is often quick and easy – sometimes, all it takes is a few clicks in your e-banking.