Cost comparison: Selma vs. Swiss Bank 🇨🇭

 

The financial industry is famous for its complex pricing and hidden fees. This practical price example gives you clarity.

 
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We're often asked how Selma's price differs from the complicated fees of a classical bank. We got curious and took a close look.

Selma is three times cheaper

The listed costs are not estimates, but real numbers found on the bank’s web page and in its fund prospects. Out of pure courtesy, we will not publish this bank's name. 😉

A. Selma B. Example mutual fund
Investment amountCHF 10'000CHF 10'000
Annual management fee0.72% (max)0.6% (cheapest fund) - 1.23 % (most expensive fund)
Product's own costs0.22% (average)0%
Transaction fee0%Be aware of the small print: Transaction fees not included
Asset based fee0%1%
Exit Fee0%Specific information missing - read the contract carefully!
Swiss stamp dutyinclusiveca. 0.15%
Swiss tax statementinclusiveCHF 10 per fund, min. CHF 25 + VAT
Deposit costs0%Minimum CHF 90 / year
Total costs (per year)CHF 94 (0.94%)CHF 290 - 353 / year (ca. 2.9% - 3.53% in the first year)

What does that mean in practice?

Let's assume you would earn a stable return of 5% on your initial CHF 10'000 investment every year. After 15 years, in 2032, once robots have taken over the world and Elon Musk has built a Hyperloop from NY to Paris, this is where you stand: 

A. Selma B. Example mutual fund
Initial investmentCHF 10'000CHF 10'000
Return on Investment5%5%
Costs in the first year0.94%2.90%
running costs0.94%1.9%
account balance in 15 years+18'165.90 CHFCHF +15'650.05
Profit in 15 years CHF 8'165.90CHF 5'650.05


 
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In a nutshell

On first glance, many offers look great and fair. But be careful with hidden costs!

⚠️ Read the small print ⚠️- Be aware of the transaction costs & exist fee.

Because of the compounding costs, the difference is staggering 2'515.90 CHF. It's 25.16% of your initial investment!

For us transparency is fundamental. Try out Selma for free and get your personal investment plan in just 5 minutes.