Using Bonviva Balance Optimizer – Individual Rules for Automated Account Transfers
You can use the Balance Optimizer to optimize your credit interest and individually manage your liquidity, both automatically and free of charge, even in periods of low interest rates. Rémy Erismann, relationship manager at Credit Suisse, gives some valuable tips in an interview.
For the last 30 years, both short and long-term interest rates have fallen worldwide. Today, they have virtually hit rock bottom. The main driver of this development: the interplay between a strong increase in worldwide savings volumes and a slowdown in investment activity. Returns have shrunk for investors and savers, who are reducing liquidity holdings and often investing abroad or in real estate.
Optimize Interest on Balances and Savings Potential
"In today's low interest rate environment, it is often difficult to find sensible ways of investing your money," says relationship manager Rémy Erismann. So it's very much worthwhile using all savings options: "Many of our clients hold several thousand francs in their private account rather than transfer them to their savings account with a higher rate of interest. And this is in spite of the fact that the Balance Optimizer can make the transfer individually and automatically."
Rémy Erismann tells us about one example from his life: "Our 25-year-old client Franziska has a Bonviva Silver private account and a Bonviva Silver savings account. She uses the Balance Optimizer every month to make a balance transfer if her private account exceeds 1,500 Swiss francs. On the 25th of the month she receives her salary of 4,500 francs and first pays her rent of 1,500 Swiss francs and her bills of around 700 Swiss francs. However, because the size of her bills can vary from month to month, she does not want to set up a standing order and risk contra-entries. So she has defined her individual Balance Optimizer rule as follows: At the end of each month, any amount exceeding a maximum of 1,500 Swiss francs is transferred automatically to her savings account."
Manage Accounts Efficiently with the Balance Optimizer
With the Balance Optimizer1 you can manage your liquidity according to your individual wishes in your various accounts, including household, vacation or savings. In doing so you can individually determine when and how much money is to be transferred from one account to another. You can keep tabs on your liquidity at all times and avoid debit interest.
Fully Automated Transfers between Accounts
There are different ways to define individual Balance Optimizer rules (PDF) between your Credit Suisse accounts:
- Transferring: In the case of an account transfer you determine the maximum amount that should remain on your account. The surplus will be automatically transferred to an account designated by you. Alternatively, you can also transfer your entire balance.
- Compensating: With compensating, you can prevent your main account from displaying a debit balance or falling below a predefined minimum amount. The shortfall is paid into the main account from another Credit Suisse account.
- Forwarding: With forwarding, every credit is automatically forwarded to a pre-designated account.
Tips from Credit Suisse Relationship Manager Rémy Erismann
Credit Suisse relationship manager Rémy Erismann explains in an interview how to make optimum use of Balance Optimizer and its different rules:
Mr. Erismann, what do you recommend to your clients when they set up Balance Optimizer?
First, you should determine what goal you want to achieve with Balance Optimizer: Would you like to optimize credit interest or ensure that there is always sufficient liquidity in your transaction account? You can select the appropriate function of the Balance Optimizer accordingly.
If you want to transfer excess liquidity from the transaction account to your savings account and benefit from higher interest rates, it makes sense to set a basic amount for general spending money: You should ask yourself how much you need in your main account to cover your fixed costs, such as health insurance premiums or mobile phone payments. You should also define how often the main account should be checked for the rule. For example, this can be done daily, weekly, monthly, and quarterly. Finally, you can determine the counterpart account to which the surplus liquidity will be transferred.
When should a "compensation" be made?
If you are looking to ensure that a certain minimum amount in your account is not exceeded, then you should choose the compensation function. This will compensate the main account automatically without any need for manual intervention. Many clients have direct debits or standing orders in place. There may be instances, particularly at the end of the month, when an account goes into the red.
Can I not manage this with a standing order? What exactly is the difference between managing transactions with the Balance Optimizer and a standing order?
The Balance Optimizer is a smart standing order: It automatically transfers flexible amounts, taking into account the account balance as well as your individually defined rules.
How simple is it to set up the Balance Optimizer?
You can easily set up the Balance Optimizer in your Online Banking. You will certainly need to spend a bit of time on this at the beginning. But once it has been set up, the Balance Optimizer is fully automatic. You can, of course, adjust and change all defined rules at any time.
What's your very own personal tip for using Balance Optimizer?
Financial matters are very individual. If you are not entirely sure about how to sensibly use the Balance Optimizer, then you should, arrange a personal consultation to find out how to set it up. A little discipline will then pay off: Keep your defined rules in place for a while, and you will achieve your savings targets!