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Old 08.06.2021, 11:48
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Bank/Savings/Investment account for putting aside tax money

Hello all,

As I do not get taxed at source, I've been sending 700CHF a month to my PostFinance E-Savings account and leaving it until it's time to pay up. However, from July, they are introducing a monthly charge.

What sort of accounts or recommendations do people have with the money put aside for tax? Something that would earn a return would be nice, but for obvious reasons, I need to be able to withdraw part or the full amount as per my choosing when the time comes.

Thanks!
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Old 08.06.2021, 11:50
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Re: Bank/Savings/Investment account for putting aside tax money

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Hello all,

As I do not get taxed at source, I've been sending 700CHF a month to my PostFinance E-Savings account and leaving it until it's time to pay up. However, from July, they are introducing a monthly charge.

What sort of accounts or recommendations do people have with the money put aside for tax? Something that would earn a return would be nice, but for obvious reasons, I need to be able to withdraw part or the full amount as per my choosing when the time comes.

Thanks!
Just pay directly to the tax authority, no need to wait to be asked to pay something.
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Old 08.06.2021, 12:09
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Re: Bank/Savings/Investment account for putting aside tax money

Open a new account with your existing bank?
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Old 08.06.2021, 12:22
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Re: Bank/Savings/Investment account for putting aside tax money

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Just pay directly to the tax authority, no need to wait to be asked to pay something.
Hi, how do you mean exactly? Do they not need the reference number with the stated amount? I get a letter with the payment details half way through the year so I don't know how much I need to be paying them until this letter comes through?
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Old 08.06.2021, 12:26
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Re: Bank/Savings/Investment account for putting aside tax money

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Hi, how do you mean exactly? Do they not need the reference number with the stated amount? I get a letter with the payment details half way through the year so I don't know how much I need to be paying them until this letter comes through?

Call them and ask for the reference code. I do that every year and pay in when I want.


If you pay too much, you will get a nice letter stating that they are happy that you pay in but here´s your money back :-)


You will get a calculation later in the year and that will reflect any payment you already made.
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Old 08.06.2021, 12:28
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Re: Bank/Savings/Investment account for putting aside tax money

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Call them and ask for the reference code. I do that every year and pay in when I want.


If you pay too much, you will get a nice letter stating that they are happy that you pay in but here´s your money back :-)


You will get a calculation later in the year and that will reflect any payment you already made.
Oh ok, thanks! did not know this was an option!
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Old 08.06.2021, 12:30
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Re: Bank/Savings/Investment account for putting aside tax money

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If you pay too much, you will get a nice letter stating that they are happy that you pay in but here´s your money back :-)
That's interesting. I've never had that, when having paid a part in advance. The money was kept and assigned to the right bill. I was told that is is important to specify for which year one is paying, hence the need to obtain, as you say, the correct details for the payment.

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Hi, how do you mean exactly? Do they not need the reference number with the stated amount? I get a letter with the payment details half way through the year so I don't know how much I need to be paying them until this letter comes through?
Yes, they do need the reference number. However, you can obtain this at any time from the tax office. And then pay in an amount you determine. In my experience, this amount is then credited to your account with them, and when they do get around to issuing their bill to you, those pre-payments are reflected.

It could be, though, that this - like so many things in Switzerland - is different from canton to canton and municipality to municipality, which could explain the difference between roegner's experience and mine. In any case, ask your own tax office, if you would like to make monthly (or sporadic) payments. They are aware that some people prefer to do it that way.
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Old 08.06.2021, 12:35
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Re: Bank/Savings/Investment account for putting aside tax money

Even if you pay in with the incorrect code, they can reassign that to the correct year. Had that once when I forgot that I had stopped the direct order only until the end of December so it started again in January with the code from the previous year.
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Old 08.06.2021, 12:38
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Re: Bank/Savings/Investment account for putting aside tax money

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Even if you pay in with the incorrect code, they can reassign that to the correct year. Had that once when I forgot that I had stopped the direct order only until the end of December so it started again in January with the code from the previous year.
And here's another difference. I had paid in, but to another year without realising it, and to my great surprise was sent letters of demand. It took quite a number of letters and phonecalls till someone kind in the tax office found my money, in their account of another year. It was invisible to the system of the tax year for which they were sending me final warnings. Now that's a programming blip if ever there was! Perhaps someone has been senisble enough to fix that, by now.
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Old 08.06.2021, 14:30
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Re: Bank/Savings/Investment account for putting aside tax money

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And here's another difference. I had paid in, but to another year without realising it, and to my great surprise was sent letters of demand. It took quite a number of letters and phonecalls till someone kind in the tax office found my money, in their account of another year. It was invisible to the system of the tax year for which they were sending me final warnings. Now that's a programming blip if ever there was! Perhaps someone has been senisble enough to fix that, by now.
Yes this happens. Then you get a charge for interest on tax that was due and a credit for the overpaid amount for the other year (which of course is much less). It surely differs by canton but generally you can't use them as an interest paying savings account.
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Old 08.06.2021, 15:31
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Re: Bank/Savings/Investment account for putting aside tax money

if you overpay one year, they'll usually automatically roll forward the balance into the next year once the year is closed out.
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Old 08.06.2021, 17:25
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Re: Bank/Savings/Investment account for putting aside tax money

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Hello all,

As I do not get taxed at source, I've been sending 700CHF a month to my PostFinance E-Savings account and leaving it until it's time to pay up. However, from July, they are introducing a monthly charge.

What sort of accounts or recommendations do people have with the money put aside for tax? Something that would earn a return would be nice, but for obvious reasons, I need to be able to withdraw part or the full amount as per my choosing when the time comes.

Thanks!
Buy USDT, send it to Blockfi get 9.3% pa, other CeFi providers pay more but we have been with BlockFi for years and it's all good. Withdraw instantly any time you like. Don't know why people still bother with banks for savings.
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Old 08.06.2021, 17:50
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Re: Bank/Savings/Investment account for putting aside tax money

9.3%!!!! wow, sounds too good to be true. How risky is this investment? Surely its highly risky if the rates are that high when rates most places are close to zero?
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Old 08.06.2021, 17:58
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Re: Bank/Savings/Investment account for putting aside tax money

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9.3%!!!! wow, sounds too good to be true. How risky is this investment? Surely its highly risky if the rates are that high when rates most places are close to zero?
4 years now, got high teens in years gone by. As said, you can withdraw any time you want.
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Old 08.06.2021, 19:50
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Re: Bank/Savings/Investment account for putting aside tax money

Any idea how they are able to offer such a high yield?
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Old 08.06.2021, 19:57
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Re: Bank/Savings/Investment account for putting aside tax money

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Any idea how they are able to offer such a high yield?
Because they lend to people with a poor credit rating, backed up by crypto, the chance of getting your money back is somewhat less than 100%
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Old 09.06.2021, 07:45
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Re: Bank/Savings/Investment account for putting aside tax money

OK so I maybe I'll just buy National Grid instead and be content with a 5% yield
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Old 09.06.2021, 11:15
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Re: Bank/Savings/Investment account for putting aside tax money

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Because they lend to people with a poor credit rating, backed up by crypto, the chance of getting your money back is somewhat less than 100%
Nope. https://blockfi.com/blockfis-founder...lending-market hth
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Old 09.06.2021, 18:59
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Re: Bank/Savings/Investment account for putting aside tax money

According to Investopedia, the company behind Tether that's supposed to guarantee the coverage by USD/Euro hasn't been audited for multiple years.

Caveat emptor.
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Old 10.06.2021, 17:32
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Re: Bank/Savings/Investment account for putting aside tax money

USDC is 11% yield with Swissborg (swiss crypto Investment platform)
You can also yield on your other coins.. and its paid out Daily !!
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