Yuh Review 2021: A new mobile banking service

Mr. The Poor Swiss | Updated: | Save, Investing
Yuh Review 2021 A new mobile banking service

(Disclosure: Some of the links below may be affiliate links)

PostFinance and Swissquote just started a new joint venture: The Yuh banking application. With Yuh, you can save money on your account, pay in Switzerland and abroad and invest in the stock market and cryptocurrencies.

Yuh is an entirely digital offer. They have no offices. You can manage all your money directly from your phone. So, you will pay your bills and invest your money on your smartphone.

So, should you use Yuh? What features does it have? And how much does Yuh cost? Let’s find out!

In this article, I will review Yuh in detail, its features, its fees, its advantages, and its disadvantages!

Yuh

In May 2021, PostFinance and Swissquote launched the Yuh service. They are trying to unify banking and trading services together. In addition, they want to unify paying, saving and investing (both in the stock market and in cryptocurrencies).

An interesting fact about Yuh is that they will share some of their profits in the form of their own cryptocurrency: the Swissqoins.

It is important to note that Yuh is not a bank itself. However, for the customers, it does not make much difference. Indeed, your money will be held by Swissquote, which is a bank. It means your money will be insured up to 100’000 CHF, the basic deposit protection as other Swiss banks.

I have no idea how they came up with this name. My guess was that it was the cheapest three-letter domain that was available. I have no idea how to pronounce (everything I tried just sounds utterly horrible). But this is highly suggestive and should not matter much for choosing a service.

So, overall, Yuh is trying to bring a lot of new things! But does that make them any good? Let’s see about that!

Features

As mentioned before, Yuh acts as both a bank and investment platform. So, we need to look at both banking and trading features.

Banking Features

For banking features, Yuh has all the basic features you can expect: you can pay your bills with the app and transfer money to and from your account. Currently, you can do transfers in CHF and EUR. You will get a Debit Mastercard to make your payments and withdraw money in Switzerland and abroad. You can also pay online with the card with CHF and EUR.

The interesting thing about Yuh is that you get access to a multi-currency account. It means you can actually receive and keep other currencies in your account. So, for instance, you could receive EUR and keep them in your account. So, when you have to pay in EUR, it will directly use that balance instead of converting from CHF to EUR.

A savings goal on Yuh (Source: yuh.com)
A savings goal on Yuh (Source: yuh.com)

You can also do peer-to-peer transfers to other users of the application. This is good if you know other users of the app. They also have the usual bunch of features like savings goals that I do not see any use for. These things are present in most digital banks.

But that’s about it as features go. For instance, with Yuh, you cannot currently use eBill or pay with Google Pay or Apple Pay. They also have no TWINT support. For people that like to pay with their phones, this is going to be an issue. Also, not being able to pay online with USD is a big deal for me. For me, a multi-currency card that is not able to use USD is pretty much useless. I pay online with USD much more often than with EUR:

Trading Features

Yuh is quite limited in terms of investment features. You can invest in about 100 different stocks. As for ETFs, you can currently invest in 5 ETFs. Again, this is a very limited choice that I hope they will increase in the future. Here are the 5 ETFs available:

  • Global Blue Chips: Vanguard Total World (VT)
  • European Blue Chips: Lyxor EURO STOXX 50
  • Gold: ZKB Gold ETF
  • Swiss Blue Chips: iShares SMI (CSSMI)
  • US Blue Chips: SPDR S&P 500 (SPY)

I cannot understand why they would call them blue chips. VT contains all the stocks from the World stock market, not only blue chips. And even for the U.S., SPY also contains all the stocks from the U.S. stock market, not only blue chips. So I think it is terrible to imply blue chips that mean safety for many people. If they wanted blue chips, they should have taken the Dow Jones Industrial Average, an actual index of so-called blue chips.

As for the ETFs themselves, the choice is fairly okay, but it is difficult to judge from only 5 ETFs. However, this should suffice for many people. Interestingly, they provide access to U.S. ETFs. I hope it will last.

A thing that bugs me is that stock market orders are only executed between 4 pm and 6 pm. And you can only market orders. So, if there are large variations in between the time you set your order and the time it is executed, you will lose (or win) money. The only reason for them to do that is to batch the orders together and net the orders to save money. This means you are paying expensive fees for some orders that will possibly be matched to another user’s order. For me, only this would be enough not to use Yuh!

Finally, Yuh also gives you access to some cryptocurrencies, like Bitcoin and Ethereum. In total, you have access to 13 cryptocurrencies, which should be enough for most people. It is not clear whether you can have proper wallet security, but I would expect not.

Yuh Fees

After looking at the features, we need to look at the fees offered by Yuh. Since yuh is both a banking package and an investment package, we will need to cover both.

It is very important to note that the pricing will change in 2022. Currently, the pricing is only available for 2021. Therefore, I will cover first the current pricing and then cover the future prices.

Banking fees

Let’s start with the banking fees of Yuh.

The basic operations are all free:

  • Paying for your bills
  • Transfer money to and from your account in CHF
  • Paying in Switzerland with the Debit Mastercard
  • Free transfers in EUR in the EEA zone
  • Peer-to-peer payment in the application

For withdrawals, you will get one free withdrawal per week in Switzerland. Subsequent withdrawals will cost 1.90 CHF. If you withdraw money abroad, you will pay 4.90 CHF.

However, you will only be able to withdraw 1000 CHF per day and at most 10’000 CHF per month. This should be good per month, but this could be an issue per day. They did not communicate any payment limit.

Now comes the expensive part: currency exchange! Yuh is charging 0.95% per currency exchange. This means that all your operations in a foreign currency will cost you 0.95%. This is funny because they claim transaction fees are free in 12 currencies, but you have to pay the currency exchange, so it is not really free. It is all about marketing… And if you do any operation on currencies not included on the app, you will have to pay 1.50%!

If you have more than 100’000 CHF on your account, you will have to pay 0.75% in negative interest rate for the assets higher than that. And 0.50% for assets more than 100’000 EUR.

For me, the currency exchange fee makes Yuh highly unattractive. Currently, there are several interesting alternatives with free payments in foreign currencies and comparable features for the banking side.

Trading fees

Let’s look at the trading fees of Yuh now.

First, there are no custody fees. This means you will not pay anything for keeping your account open without doing anything. This is a good feature!

Then, the transaction fees are really simple:

  • 0.5% fee for the stock market with a minimum fee of 1 CHF
  • 1.0% fee for cryptocurrencies without a minimum

If we compare with other Swiss brokers, these fees are relatively cheap for small operations on the stock market. But they are expensive for large operations. For instance:

  • A 1000 CHF investment will cost you 5 CHF which is cheap
  • A 10’000 CHF investment will cost you 50 CHF, which is expensive

On top of that, you will also pay currency exchange fees of 0.95% for each of your operations with currencies you do not have. For instance, if you have only CHF and want to buy something in USD, you will pay a 0.95% fee. This is quite expensive.

I am unsure whether you can keep your dividends in foreign currencies or not. If you cannot, you will pay this fee for dividends, so you will lose 0.95% of your USD dividends (or other currencies. If you can, you will only pay this if you want to convert them back to CHF.

Of course, you will have to pay the management fees of the ETFs. This is logical, and it is the same for each broker.

Overall, Yuh’s fees are not great. But if we compare Yuh to other Swiss brokers, they are not terrible. For small operations, they will be reasonable, but for large operations, they are quite bad.

Future packages (2022)

As mentioned before, Yuh will introduce new pricing schemes in 2022. There will be three packages available:

  • Flirt: A free account
  • Kiss: An account at 4.90 CHF per month
  • Love: An account at 7.90 CHF per month

Unfortunately, they have shared no information about any of these packages. So, for now, we just have to expect that the pricing will change in the future. I think this is a disadvantage since choosing Yuh now may lead to a more expensive account in the future.

Swissqoins

A unique feature of Yuh is its Swissqoin (SWQ). Swissqoin is a new cryptocurrency token that only exists within Yuh.

There are several ways of earning SWQ:

  • By depositing 500 CHF in your account when you open it, you will get 500 SWQ
  • By referring another user, you will get 500 SWQ
  • By making a trade on Yuh, you will get 10 SWQ
  • By paying with your Mastercard, you will get 2 SWQ

You can either redeem them for cash, send them to other Yuh users or keep them in your account.

Currently, one SWQ is worth 0.01 CHF (1 cent). There are 200 million Swissqoins, backed by a 2 million CHF reserve account. But this reserve account is expected to grow with time. Indeed, Yuh will reinvest 10% of its revenues into Swissqoin every month. Now, they say it is only 10% of the subscription revenues. However, there are currently no subscriptions, and there will not be any until 2022. So, the way I am reading that is that they will not reinvest anything before 2022, at least.

I do not see any value in that cryptocurrency thing. I would rather have a hard cashback or fee reductions on the operations rather than this gimmick.

Yuh advantages

We can summarize the advantages of Yuh:

  • Free EUR bank account
  • Multi-currency account
  • No custody fees
  • Cheap fees for small trading operations
  • Access to U.S. ETFs
  • The money is kept safe by Swissquote
  • Backed by two large institutions

Yuh Disadvantages

Let’s summarize the disadvantages of Yuh

  • Orders are bunched together and only executed at a set time during the day!
  • Not possible to pay in USD, only EUR, and CHF
  • Pricing will change in 2022
  • Expensive currency exchange fees
  • Only market orders
  • Very limited choice of ETFs
  • Expensive trading fees for large trading operations
  • No support for e-bills
  • No support for Apple Pay or Google Pay
  • Horrible name
  • Unclear marketing
  • Confusing pricing

Conclusion

Yuh is an interesting idea, but I do not see the usefulness of this offer currently. One interesting point is that they offer both banking features and trading features. This is good if you want to use a single account. But they are the best at neither. So, having a single account with them would be a big compromise on the features and the fees.

Also, Yuh currently lacks too many features to be interesting. For instance, they are a multi-currency account, but you cannot pay with USD. Also, their currency exchange rates are actually very high compared to other actors in the market. Or, they claim to be modern and digital, but they have no Google Pay nor Apple Pay support. And they only offer 5 ETFs to invest in. Finally, the fact that they only execute orders between 4 pm and 6 pm is a bad sign for me.

So, overall, Yuh feels like an unfinished product at this stage. It may change in the future, but currently, I do not see a use for it. If you want a good digital bank, you can use Neon and save on fees abroad. If you want a good Swiss broker, you can use Swissquote and have many more features. And if you want a multi-currency account with a lot of support and better fees, you can use Wise or Revolut and have better fees.

What about you? What do you think of Yuh?

Mr. The Poor Swiss is the author behind thepoorswiss.com. In 2017, he realized that he was falling into the trap of lifestyle inflation. He decided to cut on his expenses and increase his income. This blog is relating his story and findings. In 2019, he is saving more than 50% of his income. He made it a goal to reach Financial Independence. You can send Mr. The Poor Swiss a message here.

34 thoughts on “Yuh Review 2021: A new mobile banking service”

  1. Hi, is there a way of sending EUR directly from another account to Yuh? Do we have to use the same IBAN as for CHF transfers? I know this is not a support page, but you seem to have had some experience with the app which is why I’m asking. Thank you

    1. Hi aurea,

      I do not know. Their documentation is really not clear on the subject. But since they are not a mlti currency account, I think that this not possible. And if possible, the EUR will be automatically converted the CHF with their heavy fees of 0.95%.

      1. Thanks for the reply. It’s just that I am confused because in the article you write “The interesting thing about Yuh is that you get access to a multi-currency account”. Anyway I created an account because I thought they were cheaper than Revolut when using the card and paying in EUR, but it does not seem to be the case. The exchange fee in app is also high as you point out. Then I thought maybe as a EUR account it might be interesting. But there again it seems not to be possible if you don’t exchange on their own platform. So yeah… I think the app is gonna be unused for now which is a shame. For EUR account I use N26 which is great, it’s just a shame they use Wise for the currency exchange because it is more expensive than Revolut. And for large amount nothing beats IBKR exchange fee.

        1. I actually confused myself, sorry!

          You should indeed be able to keep the multiple currencies, my bad. But I am not sure you will be able to receive EUR directly into your account.
          As for the price, it’s considerably cheaper than Revolut and TW. If you are looking for price, Yuh is not for you, there are better and cheaper alternatives.

          And I agree with your strategy, N26 is great for EUR, Wise is great in general, but not always very cheap. Revolut is good for small amounts (<1250 CHF per month) and IBRK is top-notch for large amounts.

          1. Hi again, I have tried it and it is in fact possible to deposit other currencies than CHF directly to the account. I have sent EUR via bank transfer to Yuh and it was credited as EUR. I have not tried it with USD, but I think it should work as well. Same for the other currencies available in the app. So this part is actually quite good; if someone needs a EUR or USD account.

            One other thing that is quite interesting for me is that when I pay something in EUR I am used to using Revolut. But free Revolut does not have any cashback whatsoever. Whereas Yuh has this small 2 SWQ cashback. So I think now I will be converting to EUR in Revolut, sending that to Yuh, and using Yuh for the payments.

          2. Hi aurea,

            Thanks for sharing. It’s good to know that it’s indeed possible to directly transfer EUR directly. This could make it a good EUR account as long as it’s not used for converting.

            I did not think about the cashback. It’s true that for foreign currencies you would get some cashback with them but not with Revolut, Neon or Wise. It’s less convenient, but could be interesting if you do many of these payments. Interesting strategy, did not think of that :)

  2. I was happy to find your very complete review, thanks for your work!

    Personally, what made me open my account (today) is the Swissqoins. It might be worth nothing for a year or two, but who knows, maybe the value of these 500 Swissquoins will explode in a few years… And I don’t mind moving a little bit of my savings to do the experiment. It’s also not very risky, it’s not like it’s a random new bank. It’s backed by two very well known and reputable banks in Switzerland.

    In my case, I’m quite new to investing so that might be a good platform to start.

    And I am happy to try something new and innovative, instead of sticking entirely with these boring big banks who only start caring about their customers when they have 10M+ in their accounts, if you see what I mean :)

    1. Like all coins, there is a small probability that it goes nuts, but that’s more akin to gambling than investing ;) Although I would argue that the risks are lower but generally lower risks means lower upsides as well.

  3. I agree maybe it’s not the cheapest product at the moment but for me the free EUR account is what I was missing with Neon. I’m also interested how the Swissqoin will perform in the future :)

  4. I was exited to get a Yuh account, and read your review the day I got my card. Excellent review in a very small time window, bravo! As for the product, it have the potential to be what most people need in a single app / account but never fully succeed, that’s a shame. It will be interesting to see what the next year pricing will be. Personally I wouldn’t mind paying 5.- per month to have the ultimate Swiss army knife of banking and trading operation in my pocket, but that seems like a long way to go. As the saying goes: Jack of all trades, master of none

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