Depositor Protection and Segregated Client Funds

Depositor Protection – Safeguarding your money

The bankruptcy of a bank does not automatically mean that clients lose all of their savings. In order to ensure the protection of bank deposits, the private association Esisuisse was founded in 2005. It operates under a federal mandate to secure bank deposits (Banking Act, Art. 37h ff.). Esisuisse does not act in its own economic interest, but fulfills a legal obligation.
Membership in Esisuisse is legally required for all Swiss banks as well as Swiss-based subsidiaries of foreign banks. If a member bank becomes insolvent, the remaining members are responsible for financing the repayments to the clients of the failed bank. This system is known as Depositor Protection.

Important to know: Up to 100'000 francs per bank and per client is protected. A person holding more than 100'000 francs at a single bank, regardless of the number of accounts, should consider spreading assets across multiple banks. This is the only way to remain within the deposit insurance coverage limit.

Esisuisse has 6 billion francs in available funds to be used in case of a bank failure. Although this amount is not sufficient to reimburse all protected deposits in full at once, repayments to clients are legally guaranteed. For this reason, payouts are made in stages. If needed, Esisuisse can call for additional contributions from its members, take out loans, or request support from the federal government to fulfill the repayment obligations.
Depositor Protection is an important element in maintaining the stability of the Swiss financial system. It builds trust between banks and clients and ensures that the public’s assets remain protected even in times of crisis.

How this affects findependent clients

When investing with findependent, a small portion of the investment amount, approximately 1%, is automatically held as cash in your account. This liquidity is needed to efficiently process ETF purchases and sales, for example in the context of rebalancing.
To reach the protected maximum of 100'000 francs in the account, an investment of around 5 million francs with findependent would be required. While we would be happy for anyone to reach that level, this is rather the exception in practice.

What is not covered by Depositor Protection?

Per client and per bank, a maximum of 100'000 francs is protected by deposit insurance. Amounts above this limit are not covered in the event of a bank’s insolvency.
It’s important to note that joint accounts, for example with a spouse, are not insured twice, as the joint account is counted as a single client. If both spouses also have their own individual accounts at the same bank, each of these is independently protected up to 100'000 francs.

Here are some other types of deposits that are not covered by Esisuisse:

• Vested benefits and pillar 3a accounts:
  These accounts are not covered by deposit insurance. However, they are considered privileged deposits and are given preferential treatment in the event of bankruptcy, provided the bank still has sufficient assets after the liquidation. The limit of 100'000 also applies here.

• Investments and securities (shares, funds, bonds, etc.):
  Investments are not protected by deposit insurance, but are legally considered segregated assets. This means they remain the property of the client and do not form part of the bank’s bankruptcy estate. You can read more about this here.

• Deposits at foreign branches of banks

• Funds held at non-account-holding securities firms

A complete overview of all deposits not covered by deposit insurance can be found on the official Esisuisse website.

Segregated Client Assets – Safeguarding your investments

Not only cash deposits in a bank are protected by law. Investments such as stocks, bonds, real estate or funds that you hold through a bank are also secured in the event of bankruptcy and do not form part of the bank’s bankruptcy estate. These assets are legally considered segregated assets. In practical terms, this means the investments are the property of the clients – not the bank. The bank simply acts as a service provider that executes buy and sell orders on the financial markets and charges a fee for doing so.
The same applies to asset managers, whether they hold a banking license themselves or operate via a partnership with a bank.
In 2026, findependent obtained its FINMA licence as an account-keeping securities firm. This makes findependent an independent asset manager that must meet the same regulatory requirements as a bank and is regularly supervised by FINMA.

In the event of insolvency of either the asset manager or the bank, an external bankruptcy administrator is appointed. This administrator generally initiates contact with all clients whose assets are classified as segregated. Nevertheless, it is advisable to proactively inform yourself and, if needed, reach out directly to the administrator.
Once in contact with the bankruptcy administrator, clients normally have the option to either liquidate their investments or transfer them to another bank or asset manager.

Conclusion

In short: your money is protected!

Even if your bank or wealth manager were to go bankrupt, your money wouldn’t simply disappear overnight. And even if you have a larger savings, there are ways to benefit from the protection in place. For example, you can spread your assets across different banks and benefit from the 100'000 depositor protection per bank.

Also, the possibility of your chosen wealth manager going bankrupt shouldn’t stop you from investing either. As you now know, a wealth manager is, as the name suggests, «just» the manager. Your investments still belong to you and can generally be transferred to another provider in the event of bankruptcy.
So, as you can see: a wealth manager going bankrupt does not automatically mean that your money is gone.

At findependent, we work hard every day to keep moving forward, and we are very confident that we will never find ourselves in such a situation. We are transparent about our company’s development and make this information publicly available, so you can always see how findependent is doing.
Our customers have it even easier: we regularly share important updates and information directly with them through our newsletter. So, if you’re curious about findependent, why not give us a try? There’s no minimum contract term, and you can invest up to 2'000 francs completely fee-free.