Joint account for couples and 2-person flatshares in Switzerland
Do you live together as a couple or in a shared flat of two and need a joint account? Read on to find out what types of joint accounts there are and what you should look out for when choosing yours.
Which account for the shared household?
Comparison of (free) joint accounts
Which account for the shared household?
Example 1: Andrea and Luis – private account with power of attorney
Andrea and Luis live in a shared flat and want to manage their joint finances together. Andrea opens an additional private account at his bank UPZ, gives Luis a power of attorney, and requests a second card for Luis.
Luis is not yet a UPZ customer, so he has to organise the login for the e-banking account and download the app. They each have a card and use it to make shared purchases.
Andrea is away on a business trip for a month. Has Andrea updated the standing order for the rent? It recently went up, Luis remembers. He logs into his account and sees that the standing order is not up to date. Luis can update the amount because he has the power of attorney.
A few months later, the two have an argument. Andrea threatens to revoke Luis' power of attorney for the account – this would mean he would not have access to the money in the account. After a few days, things calm down and they decide to go their separate ways. They cancel both the living arrangement and the bank account.
Example 2: Andrea and Max – comparing and opening joint accounts
Andrea falls in love with Max and they move in together. Andrea has learnt from his experience of living in a shared flat and suggests that they should organise their finances with a «proper» joint account. In other words, they should both be fully authorised and equal account holders. The account is therefore in Andrea's and Max's name and they both have individual signatory powers. This means they can make payment orders without the other's consent. Both have access to the account and can see how much money they are spending at all times. No more sorting receipts and keeping lists.
The new account should be free of charge. Max browses the web and finds an offer that appears to be free of charge and tells Andrea about it. Andrea checks the small print and discovers that the fees for the cards are only free for the first few months and that the account is only free if you have a certain amount of money on it.
Andrea and Max shop online on foreign websites from time to time and of course they want to use their joint account for their holidays abroad. So they check the fees that are charged for payments abroad. The joint account is held in CHF and they want to know whether they will have to pay extra fees if they pay for their trip online in EUR, for example, or buy souvenirs while on holiday in Thailand.
During their research, the two come across a «global player» that provides joint accounts. It is not based in Switzerland and is attractive because of its many users and its innovation. Here, too, Andrea does some digging and discovers that the money in the account is not protected by the federal deposit protection – as is usually the case with all Swiss banks. In addition, the international provider's customer data is not stored in Switzerland. On review portals, users criticise the fact that customer service is quite difficult to reach. In addition to the price and the costs for currency exchange abroad, Max and Andrea also want a joint account that is secure and that they can get help quickly and easily if they have any questions.
Andrea and Max are getting impatient, researching joint accounts is more complicated than they expected. The costs, fees, and conditions are rarely communicated transparently – a lot is hidden in the small print and difficult to understand. It surely can't be that difficult to find the right joint account. They still don't realise how complicated it is to open a joint account.
Andrea and Max decide to open a free account and they want to open it quickly and without complications. They did exactly the same with their existing private accounts: either digitally, on a website, or in an app. But to their surprise, the provider of the free account doesn't offer this kind of onboarding. They either have to make an appointment at the branch or call their bank. While new customers can open a private account digitally, this is not possible for a joint account. Max and Andrea check all the offers and find that no bank allows the joint account – including identification and contract – to be opened completely digitally.
Right at this moment, Max receives a wonderful email: neon launched the first joint account with 100% digital account opening. This is what they have been waiting for. Although the neon duo joint account is not free, the fees and costs are communicated transparently and there are no surprises. After an exhausting and unsuccessful journey through the jungle of fees charged by other banks and the desert of digital account opening, Andrea and Max decide in favour of neon duo straight away. They both already have a personal neon account, live at the same address, and therefore fulfil the requirements for a joint account with neon. They start the account opening process directly in the app from their sofa, without having to do any paperwork or branch visits.
Example 3: Silvia and Anna – the joint account during holidays
Silvia and Anna go on their honeymoon. A holiday at last for the dream couple and the first test for their joint account abroad. They conveniently book and pay for their hotel and flight with their new joint account. Once there, they pay for everything with their neon duo cards: romantic dinners, colourful coconut drinks, and little excursions. It all seems even more dreamlike because Silvia and Anna know that with neon they don't pay any exchange rate surcharges and can therefore enjoy a few more colourful coconut drinks. Of course, the neon customer service is also there for them. Last year, Silvia lost her wallet, but after a quick email, the card was quickly replaced. The couple are sitting by the sea, deeply relaxed and enjoying the last days of their honeymoon. Thank goodness they opted for neon duo.
Comparison of (free) joint accounts
Does free really mean free?
Tip 1: Watch out for hidden costs
Before choosing a joint account, think about how you want to use it and take a close look at the fees. Sometimes there are no monthly fees, but the cards may cost something. It is also possible that the card is only free for the first few months and a fee is charged afterwards.
Tip 2: Fees for withdrawals or transfers abroad
Also pay attention to the fees for withdrawals or transfers abroad, because they can be very high. If you use the joint account when travelling or making purchases on non-Swiss websites, this can become expensive very quickly.
In general, joint accounts are held in CHF, which means that costs are incurred if you pay in other currencies. If you make a Euro transfer (SEPA), you pay for the conversion from CHF to Euros. Many banks seem to offer SEPA transfers free of charge, but there may be hidden fees for the currency exchange. You may also pay fees for non-SEPA transfers abroad. But with neon duo you pay no exchange rate surcharges.
Tip 3: Minimum account deposit = 0% interest
Some providers offer the joint account free of charge, but only if you have a certain balance on the account, also known as a minimum account deposit. You usually do not receive any interest on this money. With neon, you can put the money from the joint account into the Spaces of your personal account and earn interest on it. Please note that the money in your personal account (free, green, or metal) belongs to you alone and that a legal change of ownership occurs with the transaction to your personal account. If necessary, you can move the money back to the joint account at any time.
neon duo: What you get for 6 CHF
- Full cost transparency for both account holders
- 1 login for both private and joint account
- Everything in one app
- Completely digital account opening without branch visits and paperwork
- Deposit protection up to 100'000 CHF per joint account
- Carefree travelling: No exchange rate surcharges for payments abroad
- The neon customer service team is there for you if you have any questions
At neon, we want to continue changing the Swiss market with great products at low prices. To do this, we have to cover our costs on the one hand and generate a positive product margin with new products on the other hand. We achieve this with the very competitive fee of 3 CHF per month and user.
Developing, operating, and monitoring the joint account involves more effort for both our partner bank and us than is the case with the private account. For example, there are additional checks needed when opening a joint account, there are more clarifications regarding payment transactions, and customer service is more complex.
Opening a joint account directly in your app with neon
You want to know more about the neon duo joint account? Click here to learn more. You can start the account opening process directly in the app and invite your partner.