I am used to the zero-fee cards in Singapore, where you can apply for debit cards and credit cards paying zero fees. Once you used the card enough, you can apply for the fee waiver. It is very easy to exceed the amount you need to spend on the card, practically it is for free every year. For debit cards, as long as you have a low minimum balance, the monthly fee is waived. When I moved to Switzerland, I was shocked that the bank fees are so high.

For example, if you open an account with UBS or Credit Suisse and have a debit card, it costs you CHF50 per year, the account costs CHF15-20 per year depends if you just need a digital banking statement or a paper-based statement. By having an account with a debit card, the cost is about CHF230 per year. If you need a credit card, that is another CHF100 per year for the basic credit cards. You may argue that having a credit card can help you accumulate airline points and such if you really do the calculation, you will see if the hundreds paid for the card is worth the points you earned. Some may, most people may not find it worth it.

The same range of fees can be found in cantonal banks and other major banks in Switzerland. Even receiving money from a foreign bank can costs you additional fees. The fees are just nonexhaustive. I once went to the bank physically to transfer money abroad, and they made a mistake somehow the money was returned to my account. I was penalized with a CHF5 deduction! Again I received a CHF50 transfer from abroad but the same currency, then my bank charged me CHF9 for receiving that money. I really had enough of all the fees so I decided to go for the non-mainstream fintech company services.

1. NEON Bank

   The NEON bank offers a completely digital banking experience compared to the big ones. It is easy to use, low fees to zero fees, user-oriented, and nice design.

From the app, you can see clearly where your money came from, where did it go. You can see your spending categories. It has all the standard functions, but the amazing part is its design. It is so user-friendly that you don’t have to search for the function endlessly in the hundreds of buttons in the app. There is no fee when you receive and transfer money. You can find your bank details, friends who have neon, statements, digital card information, all easily in the app. There is no base fee, the first card costs CHF10 for the plastic. But, if you use the code 14AV8V, when you open your account, you get your card for free and an additional CHF10 bonus in your account. So when you open an account, everything is free except when you want to transfer money abroad, which will cost you at the mean exchange rate of 0.8 – 1.7% fees with no exchange rate surcharge. For more pricing information, you can find it here. When you use the card abroad, you just pay a bit of premium on the fees, there is no additional fixed surcharge such as CHF5 by other banks.

Neon offers many partnership discounts for its users such as pillar 3a, insurances, and other services.

In summary, neon is great for

• zero-fee account

• zero-fee bank card: when using code 14AV8V to get a cash bonus of CHF10 and a free card, otherwise it costs CHF10.

• zero-fee domestic transfer

• low fee when using the card abroad: 0.8 – 1.7% exchange rate fees with no exchange rate surcharge

• great user-interface for easy use

• Twice per month free ATM withdrawal

2. BankCler Zak

Zak is the app from Bank Cler. It is similar to Neon which offers low fees and great digital banking experiences.

The main landing page in the app shows different buckets for your money, which is a great design for budgeting. So you can allocate funds to each bucket and spend within budget. You can create as many buckets as you need. The account is free so is the basic card. Zak plus card costs CHF8 per month. With the plus card, you will be spared a CHF2 fee for money withdrawal in Switzerland from ATM that is not Bank Cler, you will save CHF5 from money withdrawal abroad, and no fee charged for using the card for payment abroad.

With the basic card, you already enjoy the services you would normally need for free, such as

• free account with CHF25 cash bonus when using code S9KX66 within 30 days of account opening, simply input the code into the app.

• free card

• free mobile payment using the virtual card

• free online payment abroad using the virtual card

• Free cash withdrawal at Bank Cler ATM, otherwise CHF2 for basic Zak card when withdrawing cash from other banks’ ATM.

• CHF5 cash withdrawal surcharge when abroad, otherwise no fee for Zak plus card.

• no information on the exchange rate found on their website.

More fee comparison of Zak and Zak plus can be found here. In the app, you can also find Zak store where there are promotions, insurances, plug-ins and other bank Cler products such as mortgages.

*Code has to be input into your Zak app within 30 days of account opening in order to receive a bonus of CHF25 in your account.

3. Revolut

Revolut is the first digital banking service I tried in the desperate need for low fee foreign payment services. I used to travel a lot and visit different countries for work, it stung each time I see additional surcharges in my account from my card payment abroad. Especially the fixed surcharge which is based on a per-transaction basis. If I buy a cup of coffee, I had to pay the surcharge, if I pay for a hotel room, I had to pay the surcharge. And having cash on hand is not always the most convenient or secure way to move around in a foreign country. When Revolut first came out, I was so excited to apply for a card. I tried the basic card and paid for the premium card for a couple of years because I enjoyed the benefits of free cash withdrawal abroad, free money transfer abroad, and low exchange rate. In recent years Revolut has restrained the upper limit of free money transfer, it still has a lot of benefits even with the basic card:

• free account

• free basic card

• easy registration process

• great exchange rate

• multiple currency accounts

• in-app control of cards: freeze or unfreeze

• digital cards for secure online payment

• airport lounge service: you can buy a lounge ticket directly from your app.

• zero-fee for Fr 1250 per month for foreign exchange, 0.5% thereafter.

• Fr200 per month zero-fee ATM withdrawal

If I start to travel frequently again, I will upgrade back to a premium account. The ATM withdrawal limit is higher, there is no limit for foreign transfer, you get 2 tickets for airport lounges directly into your app when your flight is delayed for more than 1 hour, and many other benefits for international travelers.

I would use Neon or Zak for domestic payment and Revolut for payment abroad or in other currencies.

Free banking services

As you can see, there are multiple choices for free banking services in Switzerland. You can cover both domestic and abroad payment needs with minimal fees. So why do you still want to pay hundreds per year for the same service then?

There could be situations that you are an important customer of the big banks and they can sign a fee-waiver for you because your assets with the bank have generated more profits for them. Another benefit is to receive a personal service with a dedicated banker, when it comes to mortgage and financing, they can be much help.

If you don’t get those additional services from a bank, just need a basic bank account for everyday use, you can consider a change to those free ones. And use the savings for investment which could result in a bigger sum in the future, so why wasting your money?