Where to Keep Your Cash: Savings Accounts, Emergency Funds and Deposit Protection
How much cash to hold, where to put it and what happens if a bank fails.
5 min read · Budget & Everyday
Cash is boring but essential. It pays for surprises and gives you freedom to invest the rest with confidence.
How much?
Hold three to six months of essential expenses. Raise the amount if you are self-employed, have dependants or a high franchise. Add money for planned expenses within two years.
Example with default values. Open the calculator →
Where to hold it
- Savings accounts at cantonal banks, online banks or PostFinance.
- Compare interest rates and fees once a year; rates follow the central bank policy rate.
- Keep the emergency fund separate from your everyday account.
Deposit protection
The Swiss deposit insurance (esisuisse) protects up to CHF 100,000 per customer and bank. If you hold more, consider splitting between institutions. Pillar 3a and vested benefit accounts are protected separately.
Taxes
Interest is taxable income and balances count for wealth tax. Withholding tax of 35 % applies on interest above CHF 200 per account and year; you reclaim it by declaring the account.
Beyond cash
Do not leave long-term savings in cash for decades, as inflation erodes them. Use the emergency fund calculator to set your target.