What happens to my Credit Suisse account?

© Keystone / Ennio Leanza

The legal merger of UBS and the Swiss business of Credit Suisse is due to take place in 2024. But what will that mean for the customers of the two banks? Here are answers to the most burning questions.

What happens to my Credit Suisse bank account? 

For now, bank accounts at Credit Suisse and UBS will remain separate. As usual, payments and transfers can be made via the accounts. Banking advice for customers also remains unchanged. Credit Suisse states on its website: “There is currently no need for action.” Terms and conditions remain the same. However, because of the acquisition, references to Credit Suisse Group in the contracts now also include UBS Group companies.

Clients withdraw billions from Credit Suisse

After the announcement that Credit Suisse would be taken over by UBS, the outflow of assets continued in the second quarter of 2023. Globally, customers withdrew CHF39.2 billion net in the period from April to June, UBS said at a media conference on August 31. Assets under management also fell to CHF1.2 trillion.

What happens to my mortgage, investments, or other funds? 

Not much will happen with mortgages under the takeover. They will probably be transferred to UBS and will continue as before. It is similar with private investment plans (so-called third-pillar investments): the assets remain with the depositor. Assets in third pillar accounts are generally very well protected. There is also little movement in the funds for the time being. According to the banks, business activities will continue until Credit Suisse Switzerland is transferred to the UBS systems, probably by 2025. 

Credit Suisse shares were removed from the stock exchange in June and exchanged for UBS shares. There was one new UBS share for 22.48 Credit Suisse shares.

Are all Credit Suisse services provided by UBS? 

Credit Suisse is fully integrated into UBS. However, the “Credit Suisse” brand or name will remain for the moment and perhaps in the future. “It’s possible, for example, that the digital CSX account offer, which was introduced to the market with a lot of effort, will continue to exist,” says SRF business editor Matthias Pfander.

How safe is my money with UBS? 

For regulatory reasons, big banks hold a multiple of the secured customer deposits as liquidity. It was repeatedly said that Credit Suisse originally had a trust problem, but not a liquidity problem. One thing is clear: there is deposit insurance in Switzerland to protect account balances (deposits) in the event of an insolvency of a bank or securities firm.

Depositor protection briefly explained

Swiss Banking LawExternal link stipulates that if a Swiss bank goes bankrupt, deposits up to a maximum of CHF100,000 must be paid out “privileged”.

To implement deposit insurance, 241 Swiss banks have organised into the “Esisuisse” association. All banks that have secured deposits must join this self-regulating system.

How are UBS clients affected? 

At the UBS media conference on August 31, CEO Sergio Ermotti stated: “We want to keep the excellent parts of Credit Suisse, like the excellent people. The integration will enable us to secure more jobs and better serve customers.” According to economics editor Matthias Pfander, “it is possible that teams will be mixed up with Credit Suisse and UBS people and that the existing UBS clients will also have new contacts.” According to experts, economies of scale could also become relevant for UBS in the medium term. In other words, more financial products and services for more customers; in the best case, this means lower costs for the bank and customers.

This article first appeared on SRFExternal link.