3 tips for saving money when moving to Switzerland
Cut down on currency exchange and bank charges, and get a rent guarantee: here are our tips for settling in Switzerland and saving money.
Once again ranked as the top destination for expats in the 2021 Expat Explorer survey conducted for HSBC, Switzerland is undoubtedly the ideal place to settle. And many cross-border workers have certainly realised this! However, the race to buy or rent property there is fraught with pitfalls…
Currency exchange fees, bank charges, rent guarantees: if you’re moving to Switzerland and want to save money on your main expenses, b-sharpe is here to offer its best advice!
#1 Cut your bank charges with a digital bank
Even before you move to Switzerland, there’s one thing you should do to keep your bank charges down: open an account with a digital bank!
Expatriates often keep their original bank account in their home country so they can have their salary and other income paid into it, or to cover small everyday expenses… But this inevitably incurs bank charges, which will soon start to eat into your savings.
The best option is still to open an account with a digital bank. Doing so will often eliminate your monthly fees altogether.
Please note: Most digital banks refuse to open accounts for prospective customers who are already living abroad. It is therefore best to make arrangements well in advance!
With the rapid growth seen in this sector, there is no shortage of digital banks:
In this regard, you’re spoilt for choice. Just make sure to check and compare the additional fees and services offered by each provider so you can choose the option that best suits your needs.
#2 Reducing currency exchange fees when transferring your savings
Once settled in Switzerland, most expats face a pressing need: that of having Swiss francs to cover their local expenses.
As day-to-day expenses will now be in CHF, new arrivals will need to convert a significant portion of their savings into Swiss francs.
Even at this stage, almost all expats looking to exchange currency make the same mistake: making an international transfer from a European bank to a Swiss bank! In this scenario, the expat inevitably ends up facing a very unfavourable exchange rate…
The solution? Of the various ways to exchange currency between euros and Swiss francs, the most convenient is still to sign up for an online currency exchange service. This way, expats can benefit from a preferential exchange rate whilst avoiding the many hassles associated with high street bureaux de change!
The first step to saving money when moving to Switzerland is therefore to take advantage of the best exchange rate. With this in mind, b-sharpe offers transparent and competitive exchange rates in real time, with no hidden fees.
#3 Paying a deposit to secure the rent
Once you have found a flat (or house), you will usually be asked to pay a rent deposit. In Switzerland, this amount is equivalent to three months’ rent and is held in a designated account.
Good to know: Paying a rent deposit is not compulsory, but it is almost always required by estate agents and landlords.
All too often, this money tied up in an inactive account puts a strain on your savings… Fortunately, it is possible to set up a security deposit to replace the rent guarantee.
The deposit involves paying an annual premium, the amount of which depends on the rent. In return for this annual payment, the expat is therefore able to access a substantial sum. It is up to you to decide between having funds available immediately and making long-term savings.
As you may have noticed, there are steps you can take to save money when moving to Switzerland before, during and after your move. So, if you’re buying a property, b-sharpe invites you to take a look at our comprehensive guide to buying property in Switzerland in 2022.
