PostFinance Vs. Other Swiss Banks

How does PostFinance compare to other Swiss banks insofar as interest rates, fees and charges are concerned?

Hi there,

Here is a basic overview of Postfinance products compared to those offered by other Swiss banks.

Private accounts:

1. Private accounts from Postfinance are among the most affordable for adults.

The PostFinance private account is free of charge (including debit cards) for adults who hold amonthly average of 7500 francs or more at the bank (all accounts). It is one of the most affordable private accounts for people with that amount of assets. If you do not hold 7500 francs at Postfinance, you pay 60 francs per year for this account. There are private accounts - such as the Universalkonto E CHF from Aargauische Kantonalbank - which do not have an annual fee, but charge fees for non-online transactions and debit cards.

The Private Account Plus is free of charge for adults who hold a monthly average of 25,000 francs at the bank. This account has very favorable fees - particularly for those who travel (no fee is charged for ATM cash withdrawals abroad using the debit card).

2. Private accounts for young adults and students are average.

3. Private accounts for non-residents range from average (one account) to expensive (when you hold multiple accounts).

Credit cards:

Credit cards from PostFinance compare well in the moneyland.ch cost comparison. Depending on how you use credit cards, PostFinance credit cards can be one of the cheaper options. Recent hikes in PostFinance's credit card fees have made its credit cards less attractive for certain types of users.

Savings accounts:

1. PostFinance savings accounts for adults: Lower average
2. PostFinance savings accounts for young adults and students: Lower average

Savings account interest rate: Lower average

3a retirement accounts:

PostFinance 3a retirement accounts fall under the lower average category in comparison to other 3a retirement accounts.

Vested benefits accounts:

The interest paid by postfinance on vested benefits falls under the lower average category compared to other Swiss banks.

Online trading:

Good average. The online trading services from PostFinance are affordable compared to those of other major banks. However, there are more affordable Swiss online brokers.

Mortgages:

Current reference interest rates:

1. 5-year FRM: Below-average interest rates. However, there are between 10 and 15 lenders with lower reference rates.

2. 10-year FRM: Among the most affordable lenders. Approximately 5 lenders offer lower reference rates.

Personal loans:

PostFinance does not offer personal loans.

Verdict:

PostFinance has cut its interest rates (on savings accounts, 3a retirement accounts, vested benefits accounts, private accounts, etc.) at an above average rate in recent years. It has also raised a number of its fees (for business accounts, securities brokerage, credit cards and non-resident accounts).

In many areas (particularly with regards to interest rates), PostFinance now falls under the "average" category.

While PostFinance attracted numerous customers with attractive terms and conditions in the past, it is now large enough that it can afford to cut interest rates and raise fees. It is highly possible that the bank earns more through the additional fees and lower interest payments than it loses in the way of lost customers.

As stated above, however, PostFinance remains an attractive bank for adult private accounts.

Best regards from Moneyguru

More on this topic:
PostFinance
PostFinance: Lower interest, higher fees
PostFinance: New E-Trading fees
PostFinance: Higher fees for business customers
PostFinance: No credit cards for non-resident customers
PostFinance: Higher fees for non-residents