What is the security deposit?
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| To obtain a credit card linked to your swiss bank account, you
have to make a security deposit: | - Depending on the bank, this deposit can amount to as much as 1.5 to 2 times the monthly credit limit.
For example, if you have a maximum monthly limit of 5,000 USD, you will be asked for a deposit of anywhere from 7,500 to 10,000 USD. - This money is held in another account and invested in an investment fund.
- You will get the deposit back when you cancel the credit card and pay any outstanding bills.
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Can I obtain a credit card without a security deposit?
No. No bank will agree to issue a card without a security deposit.
An ill-intentioned client could withdraw all the money available in his or her account on the first day and then max the credit card to the limit. Even if the account is empty, the bank is still obliged to pay the bill at the end of the month. Swiss banks have been in business long enough to know that if such a possibility exists, certain people will not hesitate to abuse it. Can the security deposit be used to pay credit card bills?
No. Bills are sent to you, and you must pay them separately. If this correspondence is inconvenient, you can always authorize the bank to make a direct debit from your account - the bank thus withdraws the amount owing on the credit card bill - and they will hold the bill until the next time you drop by the branch.
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