Skip to content
Get in touch

Glossary

Deposit Protection

Deposit protection covers bank balances up to CHF 100,000 per client and per bank in the event that a Swiss bank goes bankrupt. It is operated by esisuisse, the self-regulatory organisation of the banks. It reimburses balances lost in the insolvency, not market losses.

At a glance

  • Since 2023, esisuisse has had seven working days to transfer the funds to the bankruptcy liquidator. esisuisse expects it to take several weeks for the money to reach clients (Source: esisuisse, changes from 2023).
  • A payout to clients within seven working days is envisaged as a target from 2028, counted from the moment the client's payout instruction has reached the bankruptcy liquidator. It does not describe the situation today (Source: esisuisse).
  • Pension balances from pillar 3a and vested benefits are not covered by deposit protection. In bankruptcy they are treated as privileged up to CHF 100,000 per client and per pension foundation, in addition to and independently of the other secured and privileged balances at the same bank. That is a question of rank under bankruptcy law and not a form of cover (Source: esisuisse).
  • esisuisse covers balances at banks and at securities firms, provided FINMA has authorised the securities firm to hold accounts (Source: esisuisse).
  • The system is capped. Banks fund it with a maximum of CHF 7.9 billion, equivalent to 1.6 percent of all secured deposits (Source: esisuisse).

Frequently asked questions

No, and that is the most common confusion on this subject. The seven working day deadline is esisuisse's obligation to the bankruptcy liquidator, not to you. How quickly the liquidator then pays out depends on the structures of the bank concerned and on how fast the payout instructions are available. esisuisse itself expects the process to take several weeks. A payout deadline of seven working days towards clients is envisaged only from 2028, counted from the moment your payout instruction has reached the bankruptcy liquidator.
Balances above CHF 100,000 are not covered. They fall into the bankruptcy estate as a claim in the third bankruptcy class and are settled only at the end of the liquidation proceedings, pro rata and only to the extent that assets remain. The limit applies per bank and per client and covers account balances only. Securities held in custody are segregated assets and stand outside the bankruptcy estate, but they carry market risk.

Sources: esisuisse · esisuisse FAQ · FINMA