Switching Bank Accounts in Switzerland 2025: Your Complete Guide

Are you paying unnecessary banking fees? Frustrated with poor customer service or outdated banking apps? Switching your bank account in Switzerland has never been easier - and in 2025, many Swiss residents are making the move to modern neobanks or better traditional banks.

This comprehensive guide walks you through everything you need to know about switching bank accounts in Switzerland, including the legal process, comparison of banks, and a step-by-step checklist.

Last updated: November 2024

Why Swiss Residents Are Switching Banks in 2025

The Rise of Neobanks

Traditional Swiss banks like UBS, Credit Suisse (now part of UBS), PostFinance, and Raiffeisen have dominated for decades. But since 2020, Swiss neobanks have gained massive popularity:

• Neon: Over 200,000 customers, completely free banking
• Yuh: Joint venture by Swissquote and PostFinance, investing features included
• Zak: Offered by Bank Cler, modern app with free account
• Radicant: New sustainable banking option launched 2024

Main Reasons People Switch

1. High fees: Traditional banks charge CHF 5-15/month for account maintenance
2. Better apps: Neobanks offer superior mobile banking experience
3. Foreign transaction fees: Many neobanks have lower or zero FX fees
4. Investment features: Apps like Yuh include integrated stock trading
5. Customer service: 24/7 chat support vs branch-only service

Legal Rights: Account Portability in Switzerland

Since February 2021, Switzerland has implemented account portability regulations similar to the EU. This means:

✅ Your new bank should generally help with the switch - they handle most paperwork ✅ Process should generally complete within 7 business days by law ✅ Transferring standing orders and direct debits is automated ✅ You can keep your old account active during transition

Important: This only applies to private accounts. Business accounts don't have the same protections.

Best Swiss Banks to Switch To in 2025

🏆 Best Overall: Neon

Monthly fee: CHF 0 ATM withdrawals: 5 free per month at any Swiss ATM Foreign transactions: Interbank rate (best available) App rating: 4.7/5 stars

Best for: Anyone who wants completely free banking with an excellent app.

Downsides: No physical branches (online/app only), limited cash deposit options.

💰 Best for Investors: Yuh

Monthly fee: CHF 0 ATM withdrawals: 5 free per month Foreign transactions: 0.95% FX fee Unique feature: Integrated stock/crypto trading

Best for: People who want banking + investing in one app.

🏦 Best Traditional Alternative: Raiffeisen

Monthly fee: CHF 5 ATM withdrawals: Free at 1,000+ Raiffeisen ATMs Foreign transactions: Standard bank fees Branch network: 800+ locations

Best for: Those who want modern banking but still value physical branches.

🌱 Best for Sustainability: Radicant

Monthly fee: CHF 0-7 depending on tier Unique feature: Tracks carbon footprint of purchases Investment options: Sustainable investment portfolios included

Best for: Environmentally conscious users.

Step-by-Step: How to Switch Your Bank Account

Phase 1: Preparation (1-2 days)

Step 1: Review your current bank statements

• Download last 3 months of statements
• List all recurring payments (rent, insurance, subscriptions)
• Note standing orders and direct debits

Step 2: Choose your new bank

• Compare fees, features, and reviews
• Check if they offer account switching service ("Kontowechsel")
• Open new account online (takes 5-15 minutes)

Step 3: Verify your identity Most neobanks use video identification:

• Prepare your Swiss ID card or passport
• Video call takes 3-5 minutes
• Account activated within 24 hours

Phase 2: Account Switching (7 days)

Step 4: Use automatic switching service Your new bank will:

• Request your transaction history from old bank
• Identify recurring payments automatically
• Generate switch documentation for you

Step 5: Inform payment partners Notify these parties of your new account:

• Employer (salary payments)
• Tax authorities (cantonal tax office)
• Insurance companies (health, household, liability)
• Subscription services (Netflix, Spotify, gyms)
• Utilities (electricity, internet, mobile phone)
• Landlord (rent payments)

Pro tip: Keep a buffer of CHF 200-500 in your old account to cover any delayed transitions.

Step 6: Redirect standing orders Your new bank can automatically transfer:

• Rent payments
• Savings transfers
• Bill payments

But YOU should generally manually update:

• Credit card auto-pay
• PayPal/Twint connections
• Savings apps (VIAC, finpension)

Phase 3: Finalization (1-2 months)

Step 7: Monitor both accounts For 1-2 months, watch for:

• Missed payments to old account
• Incorrect deductions
• Failed direct debits

Step 8: Close old account After confirming everything works:

• Send written closure request (email or registered mail)
• Banks should generally close account within 30 days
• Withdraw remaining balance or transfer to new account
• Request confirmation letter

Common Mistakes to Avoid

❌ Closing old account too quickly: Wait 2 months to ensure smooth transition ❌ Forgetting credit card connections: These aren't auto-transferred ❌ Not informing employer: Salary payment failures cause major headaches ❌ Ignoring tax authorities: Update your bank details on tax portal ❌ Overlooking dormant standing orders: Check subscriptions you forgot about

Cost Comparison: Traditional vs Neobanks

Monthly Costs (Private Account)

Annual savings by switching from UBS to Neon: CHF 144 in fees alone!

Special Cases

Switching with a Mortgage

If you have a mortgage with your current bank:

• Your mortgage is separate from your account - you can switch accounts without affecting it
• However, some banks offer discounts if you keep both mortgage + account with them (typically CHF 0.1-0.25% rate reduction)
• Calculate if the rate discount exceeds the account fees

Switching as a Cross-Border Commuter (Grenzgänger)

EU residents working in Switzerland should note:

• Most neobanks require Swiss residency
• Wise (formerly TransferWise) is a good alternative for EU residents
• Some banks charge extra fees for non-resident accounts

Switching as a Foreign Resident (Permit B/C)

No special restrictions! You have the same rights as Swiss citizens. Some neobanks even offer better support for foreign residents (English-language support, multi-currency features).

Checklist: Essential Documents Needed

✅ Swiss ID card or passport ✅ Residence permit (if applicable) ✅ Proof of address (utility bill, rental contract) ✅ List of standing orders and direct debits ✅ Recent bank statements (last 3 months) ✅ Employment contract (for some traditional banks)

Timeline: What to Expect

• Day 1: Open new account (15 minutes)
• Day 2-3: Video identification and account activation
• Day 4-5: Transfer initial funds and set up app
• Week 2: Update employer, insurance, subscriptions
• Week 3-4: Monitor both accounts for issues
• Month 2: Close old account if everything works

FAQ

Q: Can I keep both accounts open? Yes! Many people keep a traditional bank for mortgage/credit cards and use a neobank for daily spending.

Q: Will my credit score be affected? No, switching bank accounts has no impact on your creditworthiness (ZEK score).

Q: What happens to my credit card? Credit cards are separate products. You can keep your old credit card even after closing the account, but you'll need to update the payment method.

Q: Can I switch if I have debt? Yes, but if you have an overdraft or negative balance, you should generally clear it before closing the old account.

Q: Is there a cancellation fee? By law, Swiss banks cannot charge fees for closing an account. However, if you have a minimum term contract (rare), early termination might trigger a penalty.

Conclusion: Is Switching Worth It?

For most Swiss residents, yes! The average person saves CHF 100-200 per year by switching from traditional banks to neobanks. Beyond money, you gain:

• Better mobile banking experience
• Lower foreign transaction fees
• Modern features (instant notifications, spending insights)
• Superior customer service

The switching process takes just a few hours of your time spread over 2 months, with most tasks automated by your new bank.

Ready to make the switch? Compare your options and start the process today!

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Next steps:

• Compare Swiss banks and their fees
• Check if your employer allows digital salary payments
• Download statements from your current bank
• Open a new account and start the switching process

Have you switched banks recently? Share your experience in the comments below!