UBS plans to close a fifth of all its branches in Switzerland over 2021, reducing its presence to 195 branch offices. At the peak of its physical presence, UBS operated more than 300 branch offices across Switzerland. In keeping with this digitization strategy, UBS is also raising some of its fees.
Fees for physical documents increasing
From March 1, 2021, UBS will charge higher fees to holders UBS private accounts who want to access physical documents (the “traditional” model) rather than opting for online banking only. The monthly account fee for adult private accounts with physical documents is increasing to 9 francs per month (108 francs per year). Previously this kind of account cost 7 francs per month.
Customers who require physical documents but use a UBS mortgage or construction loan, or hold 10,000 francs or more at UBS, now pay 7 francs per month (84 francs per year). Previously these customers paid 5 francs per month for their UBS accounts.
No changes apply to UBS customers who already use the digital-only model for their private accounts (the Standard model). These will continue to pay 5 francs per month (or 3 francs per month with 10,000 francs or a mortgage at UBS).
Customers with a bank package are also not affected by the fee increase.
It is easy to notice that UBS is only increasing its fees for “traditional” customers. “UBS – like many other Swiss banks – is moving towards digital banking,” says moneyland.ch CEO Benjamin Manz. This trend will likely continue over the coming years. By increasing fees for customers who use physical banking, UBS aims to make its purely digital offers more appealing.
Debit card fees increasing
On December 1, 2020, UBS raised the annual fee for its debit cards from 40 francs to 50 francs. New UBS customers can choose the new Debit Mastercard and the Visa Debit. Business account holders now also pay 50 francs per debit card each year. Students and teenagers continue to benefit from no annual fee for debit cards.
New foreign transaction fees for debit cards
From January 1, 2021, UBS is charging a 2% (minimum 1 franc) foreign transaction fee for purchases from merchants outside of Switzerland using the Debit Mastercard or Visa Debit. Previously the foreign transaction fee was 1%, with a minimum fee of 1.50 francs per transaction.
The change means that purchases from foreign merchants which exceed 75 francs will be more expensive.
The new foreign transactions fees also apply to debit cards included in bank packages and business, student and youth accounts.
UBS ATM card now costs 10 francs per year
From May 31, 2021, UBS will begin charging a 10-franc annual fee for its ATM card. Unlike UBS debit cards, the ATM card does not include a checking card function and cannot be used to make payments or to withdraw money at out-of-network ATMs. The ATM card can only be used to withdraw money at UBS ATMs and as identification at the till.
New negative interest rates
From July 1, 2021, UBS will charge negative interest on the portion of account balances exceeding 250,000 francs at the rate of -0.75% per annum. A -0.6% negative interest rate will apply to euro account balances in excess of 250,000 euros.
UBS is more accommodating with investment and mortgage customers. UBS applies a higher negative interest threshold of up to 1 million francs for these customers. Mortgage customers benefit from an additional 500,000-franc exemption, while investors receive exemptions based on the amount of capital invested. Example: A customer with a UBS mortgage and 50,000 francs invested through UBS is only charged negative interest on the portion of their account balance which exceeds 800,000 francs (250,000 francs + 500,000 francs + 50,000 francs).
You can find an overview of Swiss banks with negative interest rates here.
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