Swiss Account Insurance

Hello,

I would like to ask you about the savings account insurance of the major Swiss banks.

I know that all Swiss accounts are insured by the Swiss National Bank (the Central Bank in Switzerland) up to CHF 100,000.

Is this the amount per account or per account holder?

In the case of a joint account with 3 account holders is the insured amount CHF 100,000 per account holder? So in total CHF 300,000?

I know that in the Eurozone there is an insurance up to EUR 100,000 per account holder. Could not be different in Switzerland, right?

Thanks

Good day

There is a Swiss depositor protection scheme. It covers accounts balances up to 100,000 Swiss francs per bank and client. Be aware that the total limit is 6 billion francs for all Swiss banks.

For more information: Bank Bankruptcy: Is Your Money Safe?

This is not a simple insurance, nor has the protection scheme anything to do with the Swiss National Bank. Rather, all other banks are protecting each other.

The special case of joint accounts is explained here: 
https://www.esisuisse.ch/en/faq?set_language=en

Best regards

Many thanks for your reply.

It seems that the deposit protection in Switzerland is not as in the Eurozone where the ECB protects all deposits for up to EUR 100.000 per bank per client.

What you describe seems to be the "Second layer of protection: The depositor protection scheme", but there is the "First layer of protection: Liquid asset claims". Each of them offers CHF 100.000 per bank per client.

It seems that all clients get protection from the first layer, please correct me if I am wrong.

I believe you are referring to preferential deposits. Basically, up to 100,000 francs per customer and bank should (ideally) be covered by the bank's cash reserves. When a Swiss bank goes bankrupt, it's cash reserves are attached and distributed to depositors, up to a maximum of 100,000 francs per customer.

Of course, it is possible that the bank will not have enough cash reserves to pay out up to 100,000 per client. In that case, the depositor protection (Esisuisse) kicks in to cover the difference, up to the limit of 100,000 francs per customer and bank.

Any balances above the 100k mark simply become debt claims against the bankrupt bank.

In practice, depositor protection works in a very similar way in Eurozone countries. The ECB does not protect deposits up to 100,000 euros. The EU simply stipulates that banks in member countries must participate in bank depositor protection insurance plans which cover a minimum of 100,000 euros per customer and bank. But the bank's liquid assets are always the first stop before depositor protection insurance kicks in.

"In the case of a joint account with 3 account holders is the insured amount CHF 100,000 per account holder? So in total CHF 300,000?"

Yes, the preferential deposits/protected deposits are 100,000 per customer and bank. This applies in the case of joint accounts as well.

Thanks very much for your detailed reply.

good luck to all

and be extremely careful until covid19 vaccine arrives