An early withdrawal penalty is a penalty fee. Swiss banks charge early withdrawal fees if you withdraw money from your bank account without giving sufficient notice, as per required notice periods. Early withdrawal penalties are most commonly used in relation to savings accounts.
The amount of money that can be withdrawn over a specific time frame without giving notice is specified in the terms and conditions of your bank account agreement. The terms and conditions also specify the required notice period for withdrawals that fall above that threshold. Limitations on withdrawals vary between banks. You can find the withdrawal conditions of each savings account in the moneyland.ch Swiss savings account comparison.
Two percent is typical
Typically, the early withdrawal fee is equal to two percent of the portion of the withdrawal that exceeds the notice-free allowance. Exceptions may apply depending on the bank and account. Some banks waive the early withdrawal fee if the withdrawn money will be used for other services provided by the same bank, such as mortgages and investment products.
How early withdrawal fees are calculated
This example shows how early withdrawal fees are calculated: The terms and conditions of a certain savings account allow you to withdraw up to 10,000 francs per month without notice. If you want to make withdrawals above that threshold, you must give notice three months before making the withdrawal. If you were to withdraw 40,000 francs from your account in one month without giving notice, you would be charged an early withdrawal fee of 600 francs (2 percent of 30,000 francs). If, on the other hand, you give your bank notice three months ahead of making the withdrawal, you can withdraw the 40,000 francs without paying a penalty.
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