Starting now, Coop is offering Swiss consumers a Coop Finance Plus app that can be downloaded and used to open and manage a bank account and a pillar 3a retirement savings solution. Coop itself is not a bank, and does not have a bank license. Instead, it provides a platform with which financial services providers can partner to offer products and services. According to Coop, its Coop Finance Plus service will also include insurance products in the future.
Which banking services does Coop Finance Plus include?
Currently, Coop Finance Plus includes these two services:
- A bank package with a private account, debit card, and savings account.
- A retirement solution with a pillar 3a account and retirement funds.
What does Coop Finance Plus cost?
The bank account with the Debit Mastercard card costs 5 francs per month. These monthly fees are waived for the first year. From the second year, the basic account fees are waived if you spend at least 500 francs per month using the debit card.
One withdrawal of Swiss francs at a Swiss ATM per month is included at no extra cost. Each additional cash withdrawal costs three francs per month. Withdrawing euros at Swiss or foreign ATMs costs three francs per withdrawal. However, you can withdraw money from your Coop Finance Plus account free of charge at the cashier in Coop supermarkets.
You do not pay a foreign transaction fee when you use the Coop Finance Plus debit card to pay outside of Switzerland. However, there is a 0.5 percent markup on the currency exchange rate. Other currency exchange costs come on top of that. The account uses the exchange rates from the Hypothekarbank Lenzburg.
Does Coop Finance Plus have a reward program?
If you participate in the Coop Supercard rewards program, then the new bank package can help you earn more rewards. When you make a purchase from Coop supermarkets and other Supercard partner stores using the Coop Finance Plus debit card, you earn twice as many Supercard points. To get the extra points, you have to both scan your Supercard code, and pay with the Coop Finance Plus debit card. You do not earn points for purchases from other merchants.
How much interest do I earn?
You do not earn interest on the balance of your private account. But you have the option of opening a savings account. The balance of your savings account earns interest as per the annual interest rates used by the Hypothekarbank Lenzburg. The rate, as per November 1, 2023, is 0.75 percent per year.
Can I make bank transfers from the Coop Finance Plus account?
Currently, you can only make transfers (including standing orders) to other Swiss bank accounts. It is not yet possible to use direct debit orders and eBills, or to make bank transfers to foreign bank accounts. If you want to use Twint, you need to use the prepaid version or the UBS version.
Which mobile payment services are supported by the Coop Finance Plus debit card?
All popular mobile payment services including Apple Pay, Fitbit Pay, Garmin Pay, Google Pay, Samsung Pay, and Swatch Pay are supported. If you do not need a plastic debit card, you have the option of getting the Coop Finance Plus debit card as a virtual card.
How secure is Coop Finance Plus?
Your account balances benefit from the same bank depositor protection that applies to other Swiss bank accounts. The Coop Finance Plus accounts are provided by the Hypothekarbank Lenzburg, which also issued the linked Debit Mastercard. The Hypothekarbank Lenzburg has a Swiss bank license, so account balances up to 100,000 francs per bank and customer fall under the Swiss bank depositor protection scheme.
Is Coop’s new offer a good option for my household bank account?
Coop advertises its new service as a household bank account. Typically, household accounts are used to pay for joint household expenses. Opening a joint household account is often a hassle, and the banks that offer these often charge high account fees. While Coop does not let you open a joint account, you can request an additional debit card. You normally pay a one-time fee of 5 francs for a supplementary card, but this fee is currently waived.
With a supplemental debit card, two people in your household can make payments from the same account using their separate cards. Because the Coop Finance Plus account cannot be overdrawn, it can be a sensible alternative to a joint account.
Which retirement saving solutions are included in Coop Finance Plus?
Coop Finance Plus includes pillar 3a solutions for tax-privileged retirement saving. These are provided by the Liberty 3a retirement foundation, the Glarner Kantonalbank as the custodian bank and asset manager, and Vanguard and OLZ as partners for investment funds. You have the option of investing your savings in retirement funds, or using a pillar 3a retirement savings account.
Currently, the pillar 3a savings account from Coop Finance Plus yields interest at the rate of 1.4 percent per annum. That makes it one of the highest-yield pillar 3a accounts at this time.
The exact costs and conditions of the retirement funds are still unknown.
How does Coop Finance Plus compare with other neobanks?
Coop Finance Plus is somewhat expensive compared to the cheapest neobanks. Most neobanks have at least one offer with no basic account fees. The new Coop neobank is only free if you meet certain requirements. After the first year, the account fees are only waived if you spend at least 500 francs per month with the Coop Finance Plus debit card.
An advantage of Coop Finance Plus is that you can make unlimited cash withdrawals free of charge at Coop supermarket tills. Another advantage is that cash withdrawals outside of Switzerland cost just 3 francs, which is cheap compared to many competitors.
The disadvantage of Coop Finance Plus is that currently, you can only make bank transfers and standing orders to Swiss bank accounts. Many other neobanks are more capable in this regard.
How does Coop Finance Plus compare with conventional Swiss banks?
With its basic account fee of 5 francs per month, Coop Finance Plus sits in the upper mid-range in terms of pricing, compared to other Swiss banks. A number of conventional Swiss banks charge less than Coop for the same services.
However, if you charge at least 500 francs of purchases per month to your debit card, the Coop Finance Plus account is one of the cheaper bank accounts available. However, this is only true if the included services are sufficient for your banking needs, and you only withdraw money at Coop tills and avoid making withdrawals from ATMs.
The savings account’s interest rate of 0.75 percent per annum is average. All five of Switzerland’s largest banks offer at least 0.75 percent interest per year on savings account balances. Some Swiss banks pay up to 2 percent interest per annum on savings account balances.
The interest rate of the Coop Finance Plus pillar 3a savings account is currently one of the highest interest rates available.
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