Euro Accounts From Swiss Banks: Questions and Answers

Opening a euro-denominated private account or savings account at a Swiss bank is just as easy as opening an account in Swiss francs. Some Swiss banks also offer custody accounts and investment fund accounts denominated by euros.

What should I know about Swiss euro-denominated savings accounts?

Some Swiss banks offer savings accounts denominated in euros. These let you keep euro savings in Switzerland and earn interest on them. Euro savings accounts typically do not have any basic account fees, and you generally earn interest on the account balance. However, savings accounts generally have stricter limits on withdrawals than private accounts do, with advance notice required for very large withdrawals. Ignoring the conditions for withdrawals results in your being charged high penalty fees.

Depending on the going interest rate regime, Swiss euro accounts may yield higher or lower interest than accounts in Swiss francs from the same bank. The interactive savings account comparison on moneyland.ch makes it easy to compare the interest rates of euro-denominated savings accounts from Swiss banks. Just select the “EUR” filter under “Currency of account.”

What should I know about Swiss euro-denominated private accounts?

Private accounts – sometimes called checking accounts and current accounts – are used for financial transactions. Purchases and cash withdrawals made with debit cards like the Debit Mastercard or the Visa Debit are also charged to a private account.

A euro-denominated private account can make sense if you regularly or frequently receive payments in euros and also spend money in euros. If you do not have an income or savings in euros, then you have to pay currency conversion charges when you convert Swiss francs to load your euro account. These exchange costs can largely annul the benefits of using a private account in euros.

Most Swiss banks charge ongoing basic account fees for euro private accounts. Account fees vary between banks, so comparing is important.

Are euro accounts covered by Swiss bank depositor protection?

Yes, Swiss bank depositor protection also applies to Swiss bank accounts denominated by foreign currencies.

What do Swiss euro accounts cost?

Swiss euro savings accounts generally do not have basic account fees.

The basic account fees of Swiss euro private accounts are normally similar to the basic account fees of Swiss-franc denominated private accounts at the same bank. The only difference is that they are normally priced in euros instead of Swiss francs.

Fees for bank transfers, direct debit orders, checks, and other banking services are normally priced in Swiss francs, even for euro-denominated accounts. These fees are typically identical to those which apply to Swiss franc accounts.

Are payments in euros with a Swiss euro account debit card free of charge?

Normally not. The debit cards that come with Swiss euro-denominated private accounts have the same or similar foreign transaction fees as debit cards linked to Swiss franc accounts. Typically, these foreign transaction fees are charged every time you use your card to pay a foreign merchant. So compared to using a Swiss franc private account, you only save on the currency conversion, as there is no need to convert Swiss francs into euros to pay when you use a euro account.

Swiss euro-denominated credit cards, on the other hand, generally do not have foreign transaction fees for payments in euros.

Are transfers to euro accounts outside of Switzerland free of charge?

That depends. The fees for bank transfers are typically identical to the ones which apply to accounts in Swiss francs. Many Swiss banks do not charge fees for SEPA transfers, but some do.

An advantage of using euro accounts is that money does not have to be converted into euros before being transferred to a foreign euro account. Depending on which bank you use for your euro account, you may be able to make transfers at little or no cost.

The costs of non-SEPA transfers are also similar to those charged when you make international transfers using a Swiss franc account. The only difference is that when you use a euro account, the money does not have to be changed, so you avoid currency conversion costs.

Are Swiss euro accounts suitable for receiving incoming euro transfers from outside of Switzerland?

The euro accounts offered by Swiss banks have Swiss IBANs. That can cause complications for the person sending you the money. Additionally, transferring money to Switzerland from other countries can generate high transfer fees, because the money is sent as an international transfer. It is important to make sure that those sending you money use SEPA transfers.

Can I deposit euros in cash into a euro account free of charge?

That depends on the bank. Many Swiss banks charge a fee (0.75 percent, for example) when you deposit euro banknotes into your euro account. Some banks charge as much as 2 percent of the deposited amount as a cash-handling fee.

If making cash deposits in euros is an important part of your banking activities, getting a euro account which does not charge you fees for depositing euros is important.

Can I withdraw euros free of charge?

In many cases, no. Most Swiss banks charge you cash handling fees when you withdraw euros from a euro account at the bank’s own counter or from the bank’s own ATMs.

The most expensive banks charge a fee equal to as much as one percent of the amount withdrawn at ATMs, and up to two percent of the amount withdrawn at the counter.

But there are a few Swiss banks that do not charge you fees to withdraw euros from your euro account, as long as withdrawals are made at the bank’s own ATMs or branch offices. If you frequently need to get euros in cash, using a euro account that has no cash-handling fees can save you a lot of money.

The fees for cash withdrawals outside of Switzerland are normally identical to those which apply to foreign ATM withdrawals from private accounts in Swiss francs.

Table 1: Swiss euro account cash handling fees

Which other fees and costs may apply to Swiss euro bank accounts?

Many Swiss banks charge fees to send you physical account statements by mail. Some Swiss banks charge fees when you make bank transfers or place standing orders at the counter.

If you choose a bank that charges those fees, then you can save money by asking the bank not to send you paper statements and doing all of your banking online only.

Some banks charge a cashing out fee when you close your euro account or terminate your banking relationship.

Do Swiss euro accounts have extra fees for non-residents?

Yes, the bank fees for customers living outside of Switzerland which most Swiss banks charge apply to euro-denominated Swiss banks accounts as well.

Do Swiss neobanks offer euro accounts?

Swiss neobanks – banks that only offer their services through online channels – are an alternative to euro accounts from conventional banks. 

Currently, there are no Swiss neobanks that offer stand-alone euro bank accounts with their own IBAN. But some neobanks offer multi-currency accounts that let you receive, hold, send, withdraw, and spend euros without having to exchange your euros into Swiss francs.

Unlike euro-denominated private accounts from conventional banks, the multi-currency accounts listed in Table 2 do not have basic monthly or annual account fees. The currency exchange rates are also more favorable than those of conventional banks.

The possible disadvantage of using a neobank is that you cannot make cash deposits into your account. There also are no branch offices for in-person consultation, making large cash withdrawals, or managing banking transactions at the counter.

Table 2: Fees for euro transactions with Swiss neobanks

How do Swiss euro-denominated savings accounts differ from foreign euro-denominated savings accounts?

The interest rates of Swiss savings accounts denominated in euros are relatively conservative compared to those of some foreign euro savings accounts. That is particularly noticeable when you compare Swiss euro savings accounts with savings accounts from banks and countries which have low creditworthiness.

Apart from the convenience, a possible advantage of Swiss euro savings accounts is that your money is protected by Swiss depositor protection.

How do Swiss euro-denominated private accounts differ from foreign euro-denominated private accounts?

Some banks in the Eurozone accept customers who live in Switzerland. A few (like German bank N26) actively market their euro-denominated private accounts to Swiss consumers.

As a general rule, the cost of making transactions within the Eurozone is lower when you use a bank in a Eurozone country than when you use a Swiss private account. The reason for this is that banks in Eurozone countries are not allowed to charge more for transfers or payments within the Eurozone than they charge for the same transactions in the country they are domiciled in.

When you open an account at an EU bank or neobank which accepts Swiss customers, you receive an IBAN from an EU country. If you frequently receive incoming transfers from EU countries, then using a euro account from an EU bank can make financial sense.

Another advantage of using foreign private accounts is that most banks in the Eurozone do not charge fees when you deposit or withdraw euros at their own branch offices and ATMs.

Is using Swiss euro accounts worth it?

Using Swiss euro-denominated savings accounts can be beneficial if you have euros that you do not want to convert into Swiss francs. Thanks to Swiss euro savings accounts, you can keep your money in euros. Your euro savings are covered by Swiss depositor protection. However, savings accounts are primarily beneficial if their interest rates are relatively high, and their costs are low.

Using Swiss euro-denominated private accounts, on the other hand, often does not make sense from a financial perspective – even if you earn income and spend money in euros. For average consumers, the Swiss-franc-denominated private accounts from certain neobanks (like Neon and Yuh) are more affordable, as the fees are lower than those of conventional private accounts in euros, and the currency exchange rates are very favorable.

In many cases, euro private accounts from conventional Swiss banks are not an optimal solution for managing euro transactions. That is true even if you earn income and spend in euros. For average users, the private accounts offered by certain neobanks can work out cheaper. Some neobanks (like Alpian and Yuh) let you hold euros in your account.

More on this topic:
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Swiss foreign currency credit cards: The pros and cons
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