How safe is my money in a bank account?

How safe is my money? The risk of loss is not only the sudden total failure of the bank as the account holder's debtor, but also a gradual loss due to taxes, fees or investment risks.

How safe is my money from loss?

In the event of a bank going bankrupt, deposit protection of up to 100 Swiss francs applies in Switzerland. The same mechanism exists abroad: in Germany up to 000 euros or 100 euros for couples, in the USA up to 000 dollars per account. In general, the requirements for licensed banks have increased in recent years and the probability of losing deposits is very small, even if the bank is taken over or goes bankrupt.

Rather, it is important to protect yourself from taxes, inflation and excessive fees.

Money in the account and the wealth tax

In Switzerland, a bank account must be declared in the asset register. The wealth tax is calculated from this. This is very low, and some cantons even have deductions for small assets. So-called allowances and exemption limits are, for example, Canton Bern currently 97 francs. However, with a few per mille tax rate on assets, the savings are not very large.

If you have a large amount of wealth, for example through inheritance or gift, it is worth reducing your taxable assets by deducting debts. These advantages arise primarily in the case of your own home or investment properties that have a higher loan value than they are assessed for tax purposes. This effect is due to the high market prices and the valuation practice.

How safe is my money from inflation?

As interest rates rise, bank accounts will also start to pay interest again. It is important to choose the right account within a bank, i.e. a savings account and not a salary account for higher amounts. If interest rates are generally too low, it is easy to open a new account at another institution and transfer the liquid assets there.

account, asset management and bank fees

In addition to interest rates, it is important to keep an eye on service and fees. These have risen sharply and, like the interest rates, should be compared regularly. Having multiple banking relationships kills two birds with one stone: you can constantly compare and move money flexibly and easily. At the same time, you have multiple deposit protection. For example, if your assets amount to 2 francs, you are 250% protected with three balanced banking relationships.

Investment risks and complete loss in stocks or incomprehensible investment products

If you want to gain an advantage over the interest on your bank account, the only option is to invest in investments with a higher return. There are many attractive and diverse offers, such as real estate shares, bonds from stable companies or states. You can often get an improved return here, but you should be aware of the long-term nature of the investment. Firstly, every entry and exit from an investment is associated with costs and fees, which have a negative impact on the return. Secondly, even very conservative investments are subject to fluctuations in value, which means that a sale can result in a profit or loss, depending on the situation of the market, politics and the overall economy.

If you want even more returns, the risk also increases as a consequence: with stocks or investments, the risk is often not apparent to the layperson and must also be declared when such products are sold. The warning often reads: "The purchase of this investment is associated with considerable risks and can lead to the complete loss of the invested capital."

It is worth being cautious, but there is no reason to panic about your account and security. It is also important to have a overall planning of taxes and finances, particularly with regard to retirement provision.