Hello hello,
In 2023, I shared with you my strategy to pay zero fees with your bank cards, but it didn’t include a cashback card. In 2024, I’ve changed that!
In this new article, I’m going to share with you my ultimate combination of bank cards to earn over 500 CHF each year!
This combination will allow you to maximize cashback and say goodbye to the 60 to 250 CHF annual fees for your bank’s services. No more extra fees on foreign currency purchases, no more bank card fees, all while still being able to shop online, pay for groceries with Twint or a bank card.
By the end of this article, you’ll know everything about the banks and neo-banks, their cards, and apps that I use, and more importantly, in what context I use them, to optimize my spending.
So, if you want to save and earn 200 to 500 CHF per year, this article is for you!
Ready to learn this method?
3-2-1, let’s go!
It’s only 100 CHF… let’s not quibble…
Some people often don’t realize the unnecessary fees they pay for banking services, which can add up to several hundred francs a year. This is what I noticed this year when I helped someone with their tax return. By the end of the year, they had nothing left in their bank account, and we discovered they were paying 12 CHF in fees every month just for account management, which adds up to 150 CHF a year. And the worst part was, they had never even noticed. It goes to show, not checking your account statements can hurt.
And there are others who don’t care because it’s “only 100 CHF” a year. OK fine, but those 100 CHF a year, if invested at an 8% interest rate, wouldn’t result in just 2,000 CHF (100 CHF x 20 years) but actually 4,942.30 CHF after 20 years thanks to compound interest. These people are missing out on the opportunity to earn an additional 2,942.30 CHF in interest on top of keeping their 2,000 CHF capital, all because they think it’s “only 100 CHF.” And that’s just for account management fees, if you add card fees, it could be even more.
So, today I thought I’d share my method for having zero fees, saving money, and being able to invest more.
1: AMEX from Swisscard
Firstly, for all my purchases in Swiss francs at Migros, Coop, Denner, restaurants, or other stores that accept American Express, I use the American Express credit card, also known as Amex, from Swisscard. I have zero annual management fees, and I earn 1% cashback on all my transactions. At the end of each month, I pay the bill using my Yuh current account.
!!!!!! A TIP: Pay your bill directly to avoid having to pay additional negative interest for late payments. Don’t get into debt like the Americans!
Yes, I agree, you need a certain level of discipline and not be a spender to make sure you can pay your bill in full at the end of the month. For this, set a budget to spend with this card and make sure not to exceed it. Additionally, Swisscard has a mobile app, which allows you to see your spending throughout the month.
The only downside, in my opinion, is that it’s not accepted at Lidl and Aldi. So when I go to those stores, I use Yuh, which we’ll talk about next 😉
In the meantime, if you also decide to order an Amex Cashback, here’s a code that will allow us both to earn 40 CHF: FC4F6XXJN.
We’ll both be winners, what could be more magical? 🙂
If you want to know more about the Amex, feel free to read my blog post on it.
2: Yuh
Since this year, I’ve been using Yuh instead of BCF, because Yuh offers me an interest rate of 1% on all my cash holdings up to 100,000 CHF, a much higher rate than what BCF offered me. So, I receive my salary there and pay my bills directly via the app. Yuh allows me to scan QR invoices, set up automatic payments, etc. I also get one free withdrawal per week at various ATMs in Switzerland, which is more than enough since I pay almost everything with my Swisscard Amex for maximum cashback!
Plus, with Yuh, you have zero bank account management fees.
But that’s not all, when you open the account, you receive a free Mastercard with which you can pay your groceries in-store with or without contact. And the Holy Grail, Yuh has a partnership with Twint! By downloading the Yuh Twint app, you can also pay in stores with Twint. Isn’t that great?! It’s personally the option I’ve chosen so I don’t have to carry a handbag and wallet or cardholder when I go shopping at Aldi or Lidl.
It’s also the neo-bank where I keep my emergency fund of 6 months of expenses/salary in case of an issue like job loss or unforeseen expenses related to an accident, for example. Additionally, Yuh allows you to create various savings deposits with different goals, e.g., emergency fund, taxes, vacation, birthday, etc. Deposits on which you also earn 1% interest.
If you want to benefit from super competitive interest rates, pay for your groceries with a free card or with Twint, Yuh is the neo-bank for you! Of course, it has other investment advantages that I’ve already explained in the special Yuh video, which I really recommend you watch.
By the way, if you want to open a Yuh account, feel free to use my promo code YUHMONEYMADAM to get an exclusive welcome bonus, 50 CHF in trading credit, and 250 Swissqoins, Yuh’s crypto! Note that this bonus is only valid for Swiss residents upon a deposit of 500 CHF into the bank account.
Another thing to know, if you’re a saver at heart and keep all your money in your bank account… BUT I hope that mindset will change after watching my videos 😉 banks are required to reimburse you up to 100,000 CHF in case of bankruptcy. So, if you reach that 100,000 CHF, consider opening an account in another (neo-)bank with zero management fees to spread out your assets.
3: Revolut
And what about online shopping?
Well, yes, Yuh would allow me to pay with Twint for items I order online.
But for this, I prefer to use Revolut.
And you might ask why? Well, simply because Revolut offers disposable virtual cards!
Let me explain: when I have an online purchase to make, I log into my Revolut mobile app, go to the Cards tab, and create a disposable virtual card, a single-use virtual card. In my opinion, this is the best option for securing online purchases, especially when buying from merchants you don’t know. This option also protects you against fraud and unauthorized card use. Let me explain: if a fraudster gets hold of your card information after you’ve paid online, they won’t be able to use it. Goodbye to the hassles and worries related to the security of your banking information online. With Revolut, your peace of mind is guaranteed!
Moreover, you can generate a unique virtual card for each online transaction, with no limit, isn’t that great?!
Another advantage of Revolut: its FREE international debit card. You can use it wherever VISA is accepted, in Switzerland and abroad.
Its currency exchange feature is the third reason why Revolut is a gem! The Revolut card is personally the payment method I use when I travel abroad since I can instantly convert money into more than 30 currencies, AND GUESS WHAT?! At the real exchange rate, with no extra fees! Yes, you read that right, no hidden fees, just PURE JOY!
No more hassles of looking for an exchange office abroad or paying astronomical fees at traditional banks to exchange your currency, and hello to substantial savings to buy all the souvenirs you want!
Moreover, Revolut offers a user-friendly and intuitive interface. You can easily manage your money, track your spending with phone notifications, and even set up budgets. Of course, all this is possible with the free standard Revolut account, which is the one I personally have. It’s a real revolution in the banking world!
So, if you want to travel with peace of mind, save on exchange fees, and secure your online purchases, Revolut is for you! If you want to open a Revolut account, feel free to use my referral link to get an exclusive welcome bonus!
In summary
To sum up, using multiple banks is not only recommended for spreading out and securing your assets, but it’s also recommended for optimizing your costs. With the American Express from Swisscard, the Yuh neo-bank, and the Revolut neo-bank, you can pay for everything you need, earn cashback, and save as much as possible since they charge zero fees!
And saving means more money to invest.
That’s it for today’s article. Don’t hesitate to tell me if this article made you want to try this strategy or if you have a better strategy to share with us 🙂
Now… To your investments!
