Neon Switzerland vs. Bank Cler Zak

I am interested in the Neon and Zak banking apps. Both appear to be free of charge. How do they compare in terms of costs and services?

Hi there,

The Neon app is a banking app published by neon Switzerland AG. Users can open a private account (at the Hypothekarbank Lenzburg) directly through the app. The Neon account comes with a Mastercard debit card.

You can see more details and apply for the Neon account and card here.

No annual fees are charged for the private account and the debit card attached to the Neon app. The debit card can be used to make 2 cash withdrawals per month at any ATM in Switzerland without paying an ATM fee. A 2-franc ATM fee applies to additional cash withdrawals in Switzerland. Euro withdrawals in Switzerland and all cash withdrawals outside of Switzerland cost 2 francs per withdrawal. Transfers within Switzerland are free of charge. A 1.8% transfer fee applies to international transfers.

The main added value of the app is that it allows users to track their income and spending in real time. Users can create budgets and track their spending in relation to each budget.

Zak is a banking app published by Bank Cler. The app is linked to a private account at Bank Cler and comes with both a Maestro debit card and a Mastercard credit card. Users can choose between 2 banking models.

The Cashless model does not have annual fees for the private account, the debit card and the credit card. Cash withdrawals at Bank Cler ATMs using the debit card are free of charge. A 2-franc ATM fee applies to withdrawals at out-of-network Swiss ATMs made using the debit card. A 5-franc ATM fee applies to cash withdrawals outside of Switzerland with the debit card. A foreign transaction fee of 1.50 francs applies to each payment by debit card at POS terminals outside of Switzerland.

The Choice model is similar to the Cashless model, but does not have an ATM fee for withdrawals at out-of-network ATMs in Switzerland using the debit card and provides 4 withdrawals outside of Switzerland without an ATM fee (a 5-franc fee applies to each additional foreign withdrawal). Users pay a monthly account fee of 6 francs.

All other features and fees are identical. Transfers within Switzerland and international SEPA transfers in euros can be made free of charge. The Zak credit card has a 2.5% foreign transaction fee and a 4.5% (min. 10 francs) cash advance fee. These fees are high compared to other Swiss credit cards – but you do not pay an annual fee for the card.

The app provides budgeting solutions and lets users make transfers and track income and spending. Bank Cler also partners with Baloise to offer insurance solutions directly within the app.

The wide availability of Bank Cler ATMs and Bank Cler branch offices makes the “Cashless” Zak model an interesting choice for individuals looking for a cheap way to access the services of a major bank at a minimal cost. Zak is also well suited to individuals who frequently make international transfers.

Neon, on the other hand, provides a cheaper solution for international cash withdrawals and may appeal to individuals looking for a bank-independent app. However, it is less well-suited to individuals who make frequent cash withdrawals in Switzerland and those who make frequent international transfers.

It is worth noting that Neon is still in its beta stage, and it will be interesting to see how the bank-independent app model develops in Switzerland.

Best regards from Moneyguru

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I opened a ZAK account some months ago. I experienced a few bugs when opening the account via the app. In the end I had to go into a Bank Cler branch office to properly open the account. That wasn't a problem as there is a branch near my workplace, but I can see how the issues could annoy the kind of people who like to do everything online, if they haven't been ironed out yet.

On the whole, I think it's a good deal. The app includes all of the necessary functions like checking the account and card balance, making transfers and setting up standing orders. It's clean and provides a good overview of activity. Initially, I did experience some bugs on my phone (I use a no-name phone running Android), with the app crashing occasionally. But it seems they have ironed out these issues as I haven't had trouble in recent months.

There are no annual fees for the credit card or prepaid card. I stick to Bank Cler ATMs to withdraw money and occasionally use the credit card to make travel reservations online from Swiss travel services, so I don't normally pay for using the cards. The costs of using the cards outside of Switzerland are about average - but I generally use cash or Transferwise when travelling.

On the whole ZAK provides great value for money. My one complaint is that wire transfers are limited to (most of) Europe. For this reason, I use it as a secondary account which I use for transactions in Switzerland only. I use the Cashless option although I generally use cash for most of my spending. I just stick with Bank Cler ATMs. With this arrangement, the account really does work out basically free for me.

I would recommend it for someone looking for a cheap solution for local banking from a bank with branches and ATMs all over Switzerland.

Hello,

I opened an account with Neon. The debit card (not a Mastercard) took some time to arrive. That is understandable considering the hype. One thing I do not understand is why the app tells me that I have an 800-franc balance, but I cannot withdraw any money at ATMs and when I check my balance at ATMs it says 0 francs.

I am not saying the product is bad, I just want to understand what is going on or what might be causing the issue.

When I open a Neon bank account, is it a real personal bank account at the partner bank in my name? Or does Neon have just one collective account at the bank and just open virtual accounts for its customers (akin to Revolut, CFD brokers, etc.)?

Hi there,

The account offered by Neon is in fact a private account from the Hypothekarbank Lenzburg but with different pricing and conditions unique to the Neon account. When you open a Neon private account, you are actually opening a private account at Hypothekarbank Lenzburg.

Like other Swiss accounts, your account benefits from the Esisuisse depositor protection guarantee.

Unlike standard Swiss private accounts, the Neon account does not currently support bank transfers outside of the SEPA region (many European countries) in euros. The same limitation applies to the ZAK account from Bank Cler.

Unlike the ZAK account from Bank Cler, depositing cash into the Neon account at bank branch offices and ATMs is not possible.

Best regards from Moneyguru

You can find a useful cost comparison of Neon and ZAK here: Swiss app-based banking study

I am not at all amazed by Neon.

I also can't withdraw money although I have a positive account balance. It says the withdrawal limit has been reached...

The loudly advertised "uncomplicated account opening in 10 minutes" ended up taking a lot longer than 10 minutes.

I waited nearly 2 weeks for the Maestro card and the full activation of the account (according to Neon this should take 2-3 work days).

So far, Neon has promised many things but delivered on only a few. I certainly cannot recommend Neon in its current state.

I've used Neon for some time now and so far I am happy with it.
The app is clear and functional, I like it better than ZAK.

I find the conditions for the card attractive: 2x per month I can withdraw money at any ATM in Switzerland. That compliments the card from my main bank nicely (that card lets me make 24 free withdrawals at out-of-network ATMs). Basically, having the Neon card as well doubles my free out-of-network withdrawals.

Compared to conventional banks, the costs of withdrawing money outside of Switzerland are not bad. A 2-franc fee and only a small markup on currency exchange rates. At many banks, you pay more than twice that much per withdrawal and you have no way of knowing what markup they add to exchange rates.

One negative point is the time it takes for withdrawals or charges to the Neon card to be booked in your account.
Other users have also had this issue.
You do receive an SMS notification after each transaction, but it usually takes up to 3 days before the debit (or credit) is applied to your account balance. Neon has said that it is working with the Hypothekarbank Lenzburg and its card issuer to optimize this.

I have to say, compared to ZAK from Bank Cler, I much prefer Neon. Just the fact that I have just one card that does everything makes Neon the winner in my book. With Bank Cler you get a Maestro card and a Mastercard, and you should never use the Mastercard for withdrawing money.

Neon has made a number of significant changes to its account since it launched.

Neon has removed foreign transactions fees for card transactions. It now compares very favorably with UK service providers Revolut and Transferwise in terms of foreign currency transactions.

Neon now offers global transfers in 20 major currencies in partnership with TransferWise with no markup on bank interchange exchange rates (the first Swiss bank account to offer this). Neon charges a flat 0.4% fee on top of the currency-specific TransferWise fee. The combined cost of Neon and TransferWise fees is generally 1%-2% of the transferred amount. That is significantly lower than the cost of international transfers with most other bank accounts.

You can find detailed information about the Neon account and card here.