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Verdict: How Swiss banks could be better for foreign residents

We reached out to our readers to ask them about banking in Switzerland - and how banks could get better. Here’s what they said.

Money - represented by colourful cash notes - from all across the world lying in a pile.
Plenty of international money finds its way to Switzerland, but what could Swiss banks do better for foreigners? Photo by John McArthur on Unsplash

Swiss banks are world famous for their shady regulations, vaults full of gold and questionable member list, but in reality banking in Switzerland is a different story. 

The dominance of a handful of powerful banks has seen Switzerland’s banking sector get a little stuck in its ways, although a new generation of smaller, more dynamic financial institutions is forcing everyone into a bit of a rethink. 

In October, 2021, we asked our readers about their experiences with banking in Switzerland. 

We also asked them which banks were best – and worst – for foreign residents in Switzerland. 

EXPLAINED: Which banks are best for foreigners in Switzerland?

One final question we asked our readers was how Swiss banks could get better. 

Here’s what they said. 

What do Swiss banks do well? 

Most of our readers said they were relatively happy with their bank, indicating that stability and reliability were two important characteristics of Swiss banks. 

Swiss banks are also making improvements in relation to e-banking, i.e. with improved internet platforms and app-based banking. 

Our readers also said that while it was hard to get by with English in some smaller banks, this was also improving. 

READ MORE: How to open a bank account in Switzerland

What can Swiss banks do better? 

Steve, from Zurich, told us that Swiss banks were conservative and slow to introduce improvements. 

“The pace of change is very slow. Contactless took ages to introduce as did moving away from Maestro.”

Speed seemed to be a frequent complaint, with Mikołaj saying he wanted “faster bank transfers, less documents on paper”.

Simon, who uses a cantonal bank, said internet functionality could be improved, with the app not working on non-Swiss mobiles. 

Eric, in Lausanne, highlighted the credit card system. 

“Credit Card system here is rubbish. Extremely high fees with no rewards.”

Nicholas said changes needed to be made to provide for easier access for Americans, although he acknowledged that this is largely to do with US rather than Swiss rules. 

“Local banks won’t touch Americans due to (American) regulations” he told us. 

READ MORE: Why are Americans being turned away from Swiss banks?

One major area highlighted by several readers was the high fees in Switzerland – most of which are only waived if you deposit seven figures or more into your account. 

Mikołaj said to avoid UBS as it was “absurdly expensive”. 

One American reader, Jeremy*, told us UBS told him he needed to deposit a minimum of CHF2 million in order for the bank to waive its high fees – an amount that he did not have. 

READ MORE: Which bank is best for Americans in Switzerland?

“All the banks charge annual fees and provide no interest to konto (account) holders. Yet, these very same banks report astonishing profits year-after-year.  There are no credit unions.”

“The people that appear to profit are the people that are already rich. Us average blokes cannot get ahead.”

Bob, from the Ticino region of Cademario, said the current mortgage rules were forcing the Swiss to rent rather than buy their own place. 

“Ease the mortgage rules. Young people are forced into renting rather than homeowning by the harsh requirements.”

Switzerland has the highest percentage of renters of any European country and is the only country in Europe where more than half of the population rent rather than own their place of residence. 

READ MORE: Why do so many Swiss prefer to rent rather than buy their own home?

Do you agree? Or do you have some other suggestions?

Please let us know at [email protected].

*Persons appearing with an asterisk had their names changed at their own request.

This report has been put together as a guide only and The Local has not received any juicy kickbacks from these banks, nor do we endorse one organisation over the other. 

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Five things to consider when organising childcare in Switzerland

Switzerland's childcare costs are among the world's highest, although there are some ways to save. Originally from the United States but now raising children in Zug, writer Ashley Franzen takes you through some of the most important things you need to consider when finding childcare in Switzerland.

Five things to consider when organising childcare in Switzerland

Switzerland has a peculiar dichotomy when it comes to childcare. Although many parents both work full-time, Switzerland has traditionally been hands off when it comes to childcare support for families with children under five, leading to some of the highest childcare costs in the world. 

For older kids there is before and after-school care that is offered by the canton, but for younger kids who haven’t quite started kindergarten, it can pose problems for parents who are in need of reliable care, particularly those who don’t have grandparents to rely on. 

According to the Swiss Federal Council, “Grandparents as well as daycare centres and extra-school care facilities are the most frequently used forms of childcare, with each category accounting for a third of provision for children aged 0 to 12 years. 81 percent of families in large cities turned to extra-family care for their children compared with 66 percent of families in rural areas. Parents’ satisfaction with the care facilities is high, but there is still unmet demand.” 

What alternative childcare options do I have in Switzerland?

There are various childcare and nursery options for babies and toddlers up through young children aged five or six. Each canton offers childcare, though often there are lengthy waitlists for available spots.

READ ALSO: ‘A developing country’: Why do so few Swiss children attend childcare?

An alternative might be a private or bilingual daycare, but the costs for these are even higher than the locally-run childcares, and sometimes have longer waitlists.

Get on a list early as it’s important to get the ball rolling on paperwork, especially as a foreigner in Switzerland. 

An alternate option is to find the equivalent of a Tagesmütter, or a carer who opens up their home to taking care of up to four children at a time, when there is space available.

The costs remain about the same, but it can be easier to get placement for childcare with an in-their-own-home carer.

Some families opt to hire a nanny, but it may not be possible financially for all families. As for bringing an Au Pair to join the family, there are specific rules and regulations in Switzerland surrounding pay, number of hours they can work (about half of which you would need to be present for), and language rules– the main one being they cannot speak the same language as the family. Additionally, language classes are stipulated for the duration of their stay. 

Suffice it to say, that there are quite a few hurdles to overcome and in order to make sure your family is supported with reliable childcare to meet your needs.

Below are five things to consider as you plan out and organise childcare in Switzerland.

Children play with educational tools. (Photo by Thomas SAMSON / AFP)

1. Compare the options

Childcare in Switzerland is top notch, albeit expensive, so make sure you take the time to figure out where you want to enrol your child.

Some of the best programs are actually run as not-for-profit organisations, such as KiBiz in Zug.

READ ALSO: What alternative childcare options do I have in Zurich?

Most daycares offer a pedagogically strong curriculum and having them at a local daycare gives your child the opportunity to learn the local language. 

2. Decide on someone to name as your emergency contact

This can be a bit harder if you don’t have family or friends nearby, but double check with a colleague or someone that you trust in the case of an emergency or illness.

Finding a colleague that is willing to help by picking up the kids when they were sick when both parents find themselves out of town can be incredibly helpful. 

READ MORE: How much does it cost to raise a child in Switzerland?

3. See if you qualify for subsidies

According to the OECD, Switzerland has the highest cost for childcare among wealthy countries. Cantons are in the process of trying to increase the amount of money they’re able to allocate for assisting families with the costs.

If your household income is under a certain amount (it varies by canton), then it might be possible to have some of the costs of your family’s childcare covered. 

4. Consider having a babysitter or two on hand that you can call

As a foreign parent in Switzerland, sometimes it makes sense to have someone extra to call on for help with childcare coverage– even if you don’t think you’ll need anyone.

Meetings get moved, appointments need to be rescheduled, and sometimes there’s the odd school workday, where kids do not attend classes.

READ MORE: How to save money on childcare in Switzerland

In situations like these, having someone to reach out to, who can help provide coverage (and perhaps even the occasionally date night) helps provide a safety net for parents that might not have any backup to call at the spur of the moment. 

5. Be open for and prepared to have a hurdle or two, be it language or logistics

Many of the institutions around the country, particularly for younger kids are really good at filling in the parents on what the kids have done during the day, what they’ve eaten, how they’ve acted. The seemingly hardest part is actually filing the paperwork and piecing together care, particularly if you don’t speak the local language.

Wendy Noller is originally from Australia, and now lives in Luzern with her husband, and their two children, aged five and seven.

When they were getting signed up for Kita, she expresses that there were quite a few hurdles to consider.

READ ALSO: How different is raising kids in Switzerland compared to the United States?

Initially they received a letter from Canton Luzern stating that there weren’t enough places for their daughter. “We had heard negative reviews from other expats, but learned that there really are a lot of myths around childcare– that it’s not good quality, or there aren’t enough places. My husband and I work 100 percent and [when registering the kids], found the local authority to be both very helpful and responsive.”

She adds that she would call or email every couple days after receiving the letter to express that they both worked full-time and were really interested in their daughter integrating.

In the end, just a couple days before school started, they were told there was a place available for her. 

While their situation had a happy ending, sometimes other backup plans need to be put in place. Organising childcare in Switzerland is doable and having a fellow foreigner who has gone through it before to help share their experience or how to go about it can make a difference in how easy or how difficult it feels. 

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