Raiffeisen Penalty Fees

Greetings,

My account at Raiffeisen just got hit with a charge for "crossing the withdrawal limit". The calculation they use is CHF 1300*0.3*3 Monate / (100*12). Can anyone tell me what is going on?

Thanks

Hi there,

Most Swiss banks limit the amount of money which you can withdraw every month without giving notice. Standard private accounts normally have high monthly withdrawal limits, but limits may be much lower at certain banks. The withdrawal limits for savings accounts are generally low.

If you withdraw more money from your account than your withdrawal limit allows for without giving notice, you may be charged a penalty interest rate on the amount withdrawn in excess of the limit.

Example: You have CHF 50,000 in a savings account which has a withdrawal limit of CHF 30,000 per quarter and a penalty interest rate of 1% per month. You withdraw CHF 31,300 in one quarter without giving notice. So you pay a penalty interest rate equal to 1% of the amount in excess of CHF 30,000 (CHF 1300) every month over the following quarter - or CHF 39 total.

It is important to differentiate between penalty rates for overstepping withdrawal limits and overdraft rates for overdrawing your account. Penalty fees or rates apply when you withdraw more than you are allowed to withdraw without giving notice, even though you have enough money in the bank to cover the withdrawal. Overdraft fees or rates are charged when you withdraw more money than your account holds.

The withdrawal limits of all Swiss bank accounts are clearly listed in the moneyland.ch private account comparison and the moneyland.ch savings account comparison. You can find the penalty rates for over-limit withdrawals listed on the info pages in the savings account comparison.

Best regards from Moneyguru