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COST OF LIVING

Which Swiss credit cards are the cheapest?

The credit card plan you choose may have a major impact on your budget. Here’s a guide to help you choose the right credit card plan in Switzerland.

Which Swiss credit cards are the cheapest?
Photo by Stephen Phillips on Unsplash

Swiss online product comparison site Moneyland.ch scrutinised 162 cards over a two-year period with the goal of determining which credits cards were the cheapest and the most expensive in Switzerland.

The study showed wide differences between cards, with some cards saving you hundreds of francs per year. 

Which card is cheapest? 

Ultimately, a major factor underpinning how much you are likely to save is how often you use the card, with the results broken into a variety of categories: frequent users, occasional users and those who intend to use the card abroad. 

Result: If you are an occasional user, you can save almost 550 francs in the first two years by choosing the cheapest credit card.

Frequent users can save more than double that – 1,200 francs – by switching to a cheaper card. 

Swisscard’s American Express Cashback credit card is the big winner, coming out on top both for frequent users and occasional users. 

Rather than costing money, it brings in:around 10 francs over two years for non-frequent user, thanks to the bonus points system. 

With all the other cards used in the comparison study, users pay extras, for example for annual fees.

Moneyland points out, however, that these results strongly depend on the use of the card. 

The comparison service defines an occasional user as someone who buys 200 francs per month in Switzerland and spends a little less than 1000 euros per year abroad with his card.

The Coop Supercard (Visa or Mastercard) is in second place, costing more than 70 francs over two years, with the cashback of around 23 francs. 

In total, the card costs 47 francs over two years, or less than 2 francs per month.

The Ikea Family credit card, issued by Cembra Money Bank, comes third in the ranking, followed by  Migros’ Cumulus Mastercard.  

Postfinance’s Visa and Mastercard, on the other hand, are in 10th place

What about using the card abroad? 

Getting slugged with hidden charges when using your card abroad is a great way to ruin a holiday. 

The Neon credit card has the lowest costs for transactions due to a favourable exchange rate, with the card costing CHF105.45 in the first two years. 

In terms of yearly fees,  those wanting to use the card abroad can save the most with the multi-currency card from Swissquote, which costs 302.5 francs per year. 

This is closely followed by the multi-currency gold card from Swiss quote, which costs 402.5 francs, followed by the Coop Mastercard/Visa (CHF486.5) and the American Express cash back card (CHF505.5). 

More of the survey’s findings can be found here.

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ENERGY

EXPLAINED: How high will heating bills be this winter in Germany?

The cost of energy is expected to rise again this coming winter, even though the government's price cap is supposed to be in effect until April 2024. Here's what households can expect.

EXPLAINED: How high will heating bills be this winter in Germany?

The onset of winter will raise concerns for many in Germany about the cost of heating their homes, with memories of last year’s rocketing prices and concerns over domestic gas supply resurfacing. 

But, compared to last year, the energy prices have now largely stabilised, though they are still higher than in 2021.

The stabilisation in prices is partly thanks to the government’s energy price cap which came into force earlier this year to cushion the blow of soaring energy prices by capping electricity costs at 40 cents per kilowatt-hour and natural gas at 12 cents.

READ ALSO: Germany looks to extend energy price cap until April 2024

The federal government plans to maintain this cap until the end of April, though this could be extended even longer, if necessary. 

How high are heating costs expected to go this year?

For the current year, experts from co2online expect somewhat lower heating costs than last year.

Heating with gas, for example, is expected to be 11 percent cheaper in 2023 than in 2022, costing €1,310 per year for a flat of 70 square metres. 

The cost of heating with wood pellets will drop by 17 percent to €870 per year, and heating with heating oil will cost 19 percent less and amount to €1,130.

According to co2online, the costs for heating with a heat pump will drop the most – by 20 percent to €1,1105. The reason for this, according to co2online, is a wider range of heat pump electricity tariffs.

Tax hikes in January

Starting January next year, the government will raise the value-added tax on natural gas from seven to nineteen percent.

Alongside this, the CO2 price, applicable when refuelling and heating, will also increase.

According to energy expert Thomas Engelke from the Federal Consumer Association, these increases will mean that a small single-family household with three or four people that heats with gas would then pay about €240 more per year for gas.

“That’s a lot”, he said. 

Another additional cost factor to consider is that network operators also want to raise prices. However, the federal government plans to allocate €5.5 billion to cushion this increase for consumers as much as possible, so how such cost increases will ultimately affect consumers is currently hard to estimate.

READ ALSO: Why people in Germany are being advised to switch energy suppliers

Overall, it can be said that, from January, consumers will have to brace themselves for higher energy costs, even though massive increases are currently not expected.

Consumer advocate Engelke advised customers to closely examine where potential savings could be made this upcoming winter: “Those who are now signing a new gas or electricity contract should inform themselves and possibly switch. Currently, you can save a few hundred euros. It’s worth it. On the other hand, you should also try to save as much energy as possible this winter.”

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