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Old 10.10.2018, 22:19
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Private Bank Accounts

Hi All,
My other half has just moved to Switzerland and we went today to open a bank account for her at PostFinance. I learned that from next year there will now be a monthly fee regardless of one's assets. Admittedly it doesn't seem too steep, but thought this an opportunity to ask if anybody is aware of particularly good alternatives at the moment? I currently have a PostFinance Private Account Plus myself, but would also be open to changing if there is a good family/couples deal around. We are just looking for something basic which can serve as a salary account.
Thanks in advance
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Old 10.10.2018, 22:29
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Re: Private Bank Accounts

Did PF tell you how much the new fee would be?
Thank you.
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Old 10.10.2018, 22:38
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Re: Private Bank Accounts

Think it was something like 5 CHF per month for Private Account Plus for assets of over 25k, 12 CHF if not. Normal Private Account was simply 5 CHF regardless of assets... but don't quote me on that
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Old 10.10.2018, 22:54
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Re: Private Bank Accounts

https://www.moneyland.ch/en/postfina...ount-fees-2019

Moneyland also lets you look for alternatives.

It all depends on how much money you bring (and what you want).
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Old 10.10.2018, 23:15
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Re: Private Bank Accounts

Thanks for the link to all the details. If I have understood correctly, there will be a CHF 5 monthly fee for customers holding over CHF 25,000 in a Private Account Plus, but there will be no fee if they have purchased securities worth over CHF 25,000 through the PF online trading platform?
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Old 10.10.2018, 23:20
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Re: Private Bank Accounts

https://www.postfinance.ch/en/detail/pricing-2019/private-customers.html
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Old 10.10.2018, 23:25
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Re: Private Bank Accounts

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Thanks for the link to all the details. If I have understood correctly, there will be a CHF 5 monthly fee for customers holding over CHF 25,000 in a Private Account Plus, but there will be no fee if they have purchased securities worth over CHF 25,000 through the PF online trading platform?

or your P3 assets, if held at PF.
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Old 16.10.2018, 13:43
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Re: Private Bank Accounts

It’s worth knowing that these are not true “private bank” accounts as you would get with the likes of Julius Baer etc. The difference is that with a true private bank account the funds are segregated and the bank cannot use them to make loans. Which means if the bank defaults you are covered only by the federal deposit insurance scheme. Private banks charge hefty fees to make up for the loss of income from not being able to lend your cash out to others.
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Old 16.10.2018, 16:40
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Re: Private Bank Accounts

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It’s worth knowing that these are not true “private bank” accounts as you would get with the likes of Julius Baer etc. The difference is that with a true private bank account the funds are segregated and the bank cannot use them to make loans. Which means if the bank defaults you are covered only by the federal deposit insurance scheme. Private banks charge hefty fees to make up for the loss of income from not being able to lend your cash out to others.
I thought Privete Banks were generally partnerships but now it's just a marketing term. Julius Bear being a quoted company & money held by them not segregates as you claim.
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Old 16.10.2018, 17:34
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Re: Private Bank Accounts

Whether assets are segregated or not has nothing to do with the legal structure of the bank. When you make a deposit at a normal bank, that shows as a liability on the bank's balance sheet. As a regulated bank it may then lend multiples of that out (fractional reserve banking system). However if the bank defaults, you are a creditor of that bank and could potentially lose your money. Hence state deposit insurance schemes were invented to protect up to a certain amount (100k or so).

With private banks, your cash is not lent to the bank, they are merely a custodian. It is the same as when you use a bank to buy shares on the stock-market. They buy and hold the shares for you in their name, but you are the owner and you cannot lose them if the bank goes bust.

I think Swiss private banks converted to limited companies because the partners no longer wanted the personal risk associated with possible money-laundering fines against their bank by the US and other governments.
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Old 17.10.2018, 13:21
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Re: Private Bank Accounts

Can you provide a link to your claim? As a previous share holder of Julius Bear their accounts did not show what you claim.

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Whether assets are segregated or not has nothing to do with the legal structure of the bank. When you make a deposit at a normal bank, that shows as a liability on the bank's balance sheet. As a regulated bank it may then lend multiples of that out (fractional reserve banking system). However if the bank defaults, you are a creditor of that bank and could potentially lose your money. Hence state deposit insurance schemes were invented to protect up to a certain amount (100k or so).

With private banks, your cash is not lent to the bank, they are merely a custodian. It is the same as when you use a bank to buy shares on the stock-market. They buy and hold the shares for you in their name, but you are the owner and you cannot lose them if the bank goes bust.

I think Swiss private banks converted to limited companies because the partners no longer wanted the personal risk associated with possible money-laundering fines against their bank by the US and other governments.
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Old 17.10.2018, 15:09
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Re: Private Bank Accounts

Which claim specifically?

You will see short-term liabilities on a bank's balance sheet as many times they will offer 'call accounts' or 'deposit accounts' to their clients, which is essentially borrowing money from their clients, which they can then lend out.

To be clear, I am not saying private banks don't do lending as well. But it is always clear when the client's cash are held in custody vs on deposit. The two things are distinct. With a retail bank, it is always deposit.

If someone has 100 million of cash to deposit, they can't take the risk that the bank might default and they will only get 100k through the insurance scheme.

Disclaimer: I do not work for a private bank.
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Old 17.10.2018, 20:34
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Re: Private Bank Accounts

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Which claim specifically?

You will see short-term liabilities on a bank's balance sheet as many times they will offer 'call accounts' or 'deposit accounts' to their clients, which is essentially borrowing money from their clients, which they can then lend out.

To be clear, I am not saying private banks don't do lending as well. But it is always clear when the client's cash are held in custody vs on deposit. The two things are distinct. With a retail bank, it is always deposit.

If someone has 100 million of cash to deposit, they can't take the risk that the bank might default and they will only get 100k through the insurance scheme.

Disclaimer: I do not work for a private bank.
I do work for a private bank and I have never heard of such a claim with regards to cash segregation. I will ask tomorrow, as as far as I know all cash is good for lending, subject to capital reserves. Securities in custody are of course segregated.
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