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Old 10.10.2008, 09:51
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Re: Guarantee of funds in Swiss Bank Accounts

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I had a talk with our banker last week, specifically on the subject 'if your bank goes bankrupt', what is protected.

We have normal personal account, joined name saving account, 3rd pillar a and 3rd pillar a (invested in funds).

The answer is: CHF30,000 per person is protected.
a) normal personal account (falls under this CHF30k cap)
b) joined name saving account (falls under the CHF30k cap)
c) 3rd pillar a (also falls under the CHF30k cap)
d) 3rd pillar a invested in funds (this one does not fall under the CHF30k cap)

The bank officer said for 'funds' or 'equity' held, the bank is just provide custody service. So, if the bank goes bankrupt, these fund will be managed by someone else.

Gala
That is an accurate statement.

Custodial assets like mutual funds, stocks, etc are separate and fundamentally unaffected by bank insolvency. Note, however, that insolvency would result in inability to access those assets till the appointed liquidator has verified the books and released the custodial assets. Moreover, if you have borrowed money from the Bank, e.g. mortgage, then the liquidator may be tempted to attach the custodial assets to recover the debts.
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