Cross-border workers, individuals residing in Italy and working professionally in Switzerland, typically require a bank account denominated in Swiss francs for the monthly deposit of their salary.
However, not all Swiss banks are able or willing to include cross-border workers among their clients. This is primarily due to the fact that Swiss banks face increased due diligence and anti-money laundering obligations for each client residing abroad. Additionally, it is common practice among cross-border workers to withdraw or transfer abroad all or a significant portion of their salary, using the Swiss bank solely as a “transit bank.” As a result, Swiss banks are burdened with the legal and compliance costs associated with the cross-border worker’s account while gaining little in terms of commission revenue or deposit growth.
What options, then, do cross-border workers have for opening an account in Swiss francs?
Online bank accounts
Also known as digital banks, they represent an alternative to the traditional banking system and offer commission-free accounts.
Disadvantages of an online bank account: These are exclusively online banks, with no physical presence in Ticino. Cash withdrawals in Swiss francs may be subject to fees, and they do not provide basic banking services such as mortgages, loans, financial advice, or credit cards.
Foreign banks that also offer accounts denominated in CHF (Swiss francs).
Some foreign banks also offer accounts denominated in Swiss francs (CHF).
Disadvantages: These are not Swiss accounts but foreign accounts (IBAN starting with “GB”), and not all Swiss employers are willing to make a CHF transfer abroad, which typically costs around CHF 5 depending on the bank, for salary payments. Additionally, there are account maintenance fees for the CHF “sub-account” and potential stamp duties. Essentially, these are not Swiss accounts, so you do not benefit from the country diversification offered by having a Swiss-based account.
Banks in Switzerland (Private Banks)
Most banks in Switzerland are investment institutions, commonly referred to as “private banks.” Specializing in wealth management and asset management, they are generally not interested in opening salary accounts for cross-border workers unless, for instance, an initial deposit of at least 500,000 Swiss francs or equivalent is made.
The Importance of Having an Account with a Local Bank in Switzerland
Having a Swiss franc account with a bank in Switzerland offers several advantages for cross-border workers. The bank provides a dedicated point of contact, branch offices, and ATMs. Cross-border workers can access basic banking services as needed, such as opening an interest-bearing deposit account, obtaining a loan, financing, a mortgage, or a credit card. Banks can also issue, upon request, a “bank reference letter,” which can be very useful in certain situations.
Moreover, a bank account in Switzerland holds intrinsic value in terms of security and diversification of liquid assets. Historically, the Swiss franc has been a strong investment, often referred to by economists as a “safe-haven currency.” This is evident when examining the historical exchange rate of the Swiss franc against the euro.
List of Banks in Switzerland That Open Accounts for Cross-Border Workers. Alphabetical order, updated as of August 2, 2024.
The Currency Exchange
Regardless of account maintenance fees, currency exchange represents the most significant cost for cross-border workers. For instance, a worker earning a net salary of CHF 4,000 per month pays at least CHF 1,000 annually in “hidden” exchange fees, embedded in the exchange rate offered by intermediaries.
Online currency exchange is a viable alternative to exchanging money at banks or currency exchange offices offering cash transactions. Cambiavalute.ch provides a fully online exchange service with a highly competitive real-time exchange rate, enabling savings of up to 80% on exchange fees. For cross-border workers, the converted funds in Euros can be sent directly to their Euro account in Italy via free SEPA transfer. Registration is free, and there is a dedicated promotions page for new customers.