The coronavirus crisis which dominated 2020 shook much of the security which many of us previously took for granted and has encouraged us to rethink our lifestyles. That makes the start of 2021 the perfect opportunity to optimize our financial lives and cut unnecessary spending. Follow these tips from moneyland.ch to save money on banking, insurance and telecom and maximize savings in 2021.
1. Compare bank accounts
A lot has changed in the banking world over the past year. New Internet-based financial services have entered the Swiss market to compete with conventional Swiss banks. While foreign financial services providers like TransferWise and Revolut have not been able to replace the need for Swiss bank accounts, Swiss neobank solutions like Neon, Zak and Yapeal provide genuine alternatives. Comparing the costs of your private account and debit card with those of current offers is a good first step towards reducing banking expenses.
2. Use an affordable credit card
Even if you use neobanks with their affordable cards and favorable foreign transaction costs, a credit card is still a must for some kinds of transactions. For example, many hotels and car rental companies require conventional credit cards for bookings.
There are big differences in the costs and benefits of different Swiss credit cards, so comparing is worth it. You can compare Swiss credit cards here.
3. Invest in stocks or ETFs
Historically, Swiss savings accounts have delivered much lower returns than Swiss stocks, as the moneyland.ch Swiss historical interest and return simulator shows. If you choose to invest in stocks – or in a portfolio of stocks using affordable ETFs – you will want to make sure to use the most affordable stock broker. The interactive online trading comparison on moneyland.ch makes it easy to find the cheapest Swiss bank for your specific investment needs.
4. Optimize your pillar 3a
Using the pillar 3a to save for retirement can help you save on taxes. Contributions to the pillar 3a can be deducted from your taxable income, and assets held in pillar 3a solutions do not count towards your taxable wealth. Using the pillar 3a is voluntary. With a few exceptions, you can only access pillar 3a retirement savings 5 years ahead of standard retirement age at the earliest.
Pillar 3a retirement savings solutions include pillar 3a savings accounts and pillar 3a retirement funds, among others. Historically, retirement funds have delivered higher returns than pillar 3a accounts over the long term. But unlike pillar 3a accounts, retirement funds come with a risk of loss – particularly for short terms.
Tip: If you pay any significant amount of income tax and have extra money which you will not need for a long time, saving this money using pillar 3a solution can lower your tax bill. If you participate in an occupational pension fund (pilar 2), you can contribute up to 6883 francs to the pillar 3a in 2021.
5. Get a different mobile plan
Many people carry on using the same mobile plan for many years because they worry that changing telecom providers will be too big a hassle. But in practice, changing mobile service providers is easy, and you can keep your existing number.
The majority of mobile phone users in Switzerland could save a lot of money by migrating to different mobile plans. Telecom companies are constantly running special promotions – often with huge discounts on standard rates. The unbiased mobile plan comparison on moneyland.ch clearly shows all special promotional offers, and is updated daily. Comparing is worth it.
6. Review your Internet connection
Many Swiss households pay much more than necessary for Internet access. The interactive Internet plan comparison make it easy to find out whether there are cheaper alternatives to your existing Internet plan. The comparison lets you find out how much your preferred Internet plan costs based on your specific address. If you use TV and/or landline telephone plans, you can compare these in combination with Internet plans. Migrating to the most affordable Internet plan for your needs can easily save you hundreds of francs per year.
7. Optimize your insurances
Streamlining your insurance coverage is one of the easiest ways to save a lot of money. Whether you use car insurance, household insurance, personal liability insurance, life insurance, health insurance, legal insurance or travel insurance, regularly comparing your insurance with the best available offers is worth it. Take a moment to consider whether you still need all of your insurance coverages and avoid wasting money on overlapping insurance coverages. Compare Swiss insurance offers now.
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