Increasingly some of the extremely wealthy are showing signs of becoming preppers
Some ultra-wealthy are eschewing Swiss bank accounts in favor of private safes and storage. https://t.co/S3P7l0FkTx
— CNN (@CNN) January 23, 2020
Davos, Switzerland (CNN Business)Banks are meant to hold cash. But in Switzerland, some rich savers are looking for alternatives.
Swiss private bankers say that clients have asked to withdraw large amounts of cash so they can store it themselves, despite the country’s reputation as a secure and reliable place for wealthy investors. Some of that money may now be sitting in private safes and storage.
The unusual moves follow five years of negative interest rates. The policy, intended to keep the Swiss franc from appreciating too much, requires banks to pay to park money with the Swiss National Bank. In some cases, banks have passed a portion of the extra costs on to their most affluent customers.
Such policies are unpopular with clients who are used to earning interest on their deposits, not paying fees. Now, some are weighing more radical ways to protect their money.
“A lot of people [are] thinking about what they should do, and alternatives to this,” said Adriel Jost, head of economics at Wellershoff & Partners, a consultancy based in Zurich.