The Costs of Closing a Swiss Bank Account Explained

Many Swiss banks charge you fees for terminating your banking relationship with them. But there are big differences between different banks. Some banks do not charge any fees when you cash out your account, while others charge more than 30 francs.

What does it mean to cash out a bank account?

In financial jargon, cashing out or liquidating a bank account simply means closing a bank account.

When you cash out your account:

• The bank closes your account.
• The bank pays out any interest it owes you and credit it to your account balance.
• The bank deducts any fees you owe from your account balance
• The remaining account balance is paid out in cash or transferred to another bank account.

Which fees do banks charge to close your account?

The following fees are widely used by Swiss banks in connection with closing a bank account:

• Cashing out fee: Many banks charge a cashing out fee to close your bank account. At many banks, this fee is 20 Swiss francs.
• Transfer fees: Most banks do not let you make online transfers once you have closed your account. If you have a remaining balance, you will have to order the transfer to a new account manually. Some banks charge fees for offline bank transfers, even when these are made in connection with closing an account. Many banks charge between 10 and 25 francs. But there are also banks that do not charge any fees for offline transfer orders. Many Swiss banks also charge a fee when you transfer money out of a savings account. The fee is often between 3 and 10 francs. Many banks charge this fee in addition to the possible fee for offline bank transfers.
• Withdrawal fees: Private accounts and savings accounts often have withdrawal limits for withdrawals made without notice. If the amount you withdraw exceeds the account’s withdrawal limit, then the bank may charge you a penalty fee. However, you can avoid penalty fees by giving notice ahead of withdrawing in keeping with the required notice period.

Some banks include a clause in their contracts that waives their obligation to pay out your account balance if it falls below a minimum amount.

How should I go about closing a Swiss bank account?

Most Swiss banks accept requests to close a bank account in two different ways

• Send a message via online banking: Contact your bank via e-banking and ask them to close the account.
• At the counter: Visit a branch office and close your account right at the counter.

Most Swiss banks do not give you the option of closing an account at the click of a button with online banking. The Obwaldner Kantonalbank is one of the few that gives you a digital option. Raiffeisen banks now let you close your account using their mobile banking app. The neobanks Neon, Yapeal, and Yuh let you close your account directly in their mobile apps.

Checklist for closing a Swiss bank account

Follow these steps to close your Swiss bank account:

1. If the amount of money in your account is higher than the account’s withdrawal limit, then give the bank notice for the excess withdrawal. Do not withdraw or transfer the money until the end of the notice period.
2. Transfer the bulk of the money to a different bank account. Make sure not to transfer more money than the withdrawal limits allow for. Bear in mind that the limits do not apply to just one withdrawal, but to all withdrawals within a given time frame (a calendar month, quarter, or calendar year, for example).
3. Instruct the bank to close your account. The bank will close the account, charge any possible fees, credit any interest it owes you, and pay out or transfer the remaining account balance.

What does it cost to close a Swiss bank account?

Table 1 provides an overview of the cashing out fees charged by different Swiss banks to close your bank account.

Most of the Swiss banks included in the table below charge the fee to close an account regardless of whether or not you remain a customer of the bank. Three of the banks – namely, the Luzerner Kantonalbank, Obwaldner Kantonalbank, and Nidwaldner Kantonalbank – do not charge a fee to close your account if you remain a customer.

Table 1: Fees for closing a private account

* A 20-franc fee applies if you do not remain a customer of the bank.

The transfer fees apply to transfers from one Swiss bank to another in Swiss francs. Additional fees may apply to transfers in foreign currencies and/or transfers to foreign banks.

How can I minimize the cost of closing a Swiss bank account?

The options for cutting down on costs vary depending on the bank. At some banks, transferring all of the money out of your account first, and then visiting a branch office in person to close the account makes the most sense. The bank is required to pay out any remaining money in cash. By going about it this way, you avoid possible fees for offline bank transfers.

Some banks may also be willing to negotiate the fees, especially if you are only closing one account with them but will continue using their other banking services.

It can also be beneficial to contact the bank in advance and ask them what the cheapest way to close your account would be.

Which fees apply to closing a savings account?

Typically, you do not pay any bank transfer fees for closing a Swiss savings account if you transfer the balance to a private account at the same bank. This is true as long as you use the internal account balance transfer option instead of a bank transfer.

Many banks charge additional fees when you close a savings account and transfer the balance to a different bank. Typically, banks charge 3 to 8 francs more for closing savings accounts than they charge to close a private account.

Which fees apply to closing other kinds of Swiss bank accounts?

This guide deals primarily with the cost of closing a private account or a savings account. The fees for closing other kinds of bank accounts can differ from those for private and savings accounts.

• Pillar 3a accounts: Most service providers do not charge fees if your account has to be closed because you have reached the age limit for the pillar 3a. However, you may pay fees for early withdrawals (such as withdrawals for home financing) and/or for transfers to other pillar 3a accounts.
• Vested benefits accounts: Depending on the service provider, terminating a vested benefits account can be very expensive. Often, fees for early withdrawals for home financing are also high.
• Stock brokerage accounts: When you close a stock brokerage account, the bank charges you brokerage fees to sell your securities. If you transfer your securities to a different bank, the new bank will charge brokerage fees when you buy securities. Alternatively, you may have the option of transferring securities to a different bank, in which case you will pay transfer fees.

More on this topic:
The costs of Swiss pillar 3a accounts explained
The costs of Swiss vested benefits accounts explained
Securities transfer fees compared