"Is my money protected?"
It's the most important question you can ask a business account provider, and one of the least asked.
Most founders open an account, see a familiar-looking IBAN and assume the same rules apply everywhere. They don't. Depending on the provider, your balance can be a bank deposit, a claim on a fintech, e-money or a digital token, and each one is treated differently if something goes wrong.
This article explains what Swiss depositor protection covers, what it doesn't, and the questions to ask any provider, including us. We'll answer them for Firma at the end.
What esisuisse is
esisuisse is the depositor protection scheme of Swiss banks and securities firms. All FINMA-authorised banks and securities firms with protected deposits are required to belong to it.
If an authorised bank or securities firm fails, deposits up to CHF 100,000 per client and institution are protected. FINMA describes a three-tier system:
- Immediate payout from the institution's liquid assets. Protected deposits are paid out first, outside the normal bankruptcy order.
- esisuisse steps in. If the liquid assets aren't enough, esisuisse funds the payout of protected deposits at Swiss branches, up to CHF 100,000 per depositor. The total amount esisuisse can be called on for is limited by law.
- Bankruptcy privilege. Protected deposits that haven't been paid out rank in a privileged creditor class in the bankruptcy.
Important for companies: the limit is per client and institution. A company with CHF 400,000 at one bank isn't protected for the full amount.
What depositor protection doesn't cover
Depositor protection is about bank deposits at authorised banks and securities firms. It doesn't cover everything with a balance on a screen.
- Amounts above CHF 100,000 per client and institution aren't protected deposits. They become ordinary claims in bankruptcy.
- Custody assets (like shares and fund units held in a custody account) aren't deposits at all. By law they're segregated from the bank's assets, which is a different kind of protection.
- Deposits at FinTech-licensed institutions (Art. 1b of the Banking Act): according to FINMA, these aren't covered by depositor protection and aren't privileged in bankruptcy. Clients must be informed of this in advance.
- Balances that aren't bank deposits, such as e-money or digital tokens, aren't esisuisse-covered deposits. What protects them depends on how the provider holds client funds, so you need to ask.
Why this matters for your company
This isn't a reason to panic. It's a reason to know.
- Operating money vs reserves. How you split working capital and reserves is a decision for your own risk policy and adviser.
- Concentration. If all your money sits with one provider, that provider's risk is your company's risk.
- Board duty. Directors have a duty of care (OR Art. 717 for an AG's board, OR Art. 812 for a GmbH's managing directors), and that includes company assets. "We didn't ask" isn't a great answer.
We won't tell you where to keep your money. That's a decision for you and your advisers. We will tell you what to ask.
10 questions to ask any business account provider
About the provider
- Are you a bank? If not, what licence or regulatory status do you have, and who supervises you?
- Who actually holds the funds? A bank? Which one? A custodian?
About your balance
- What is my balance legally? A bank deposit, e-money, a claim on you, a token?
- Is it covered by esisuisse or any other protection scheme? Get the answer in writing, ideally from the terms.
- How are client funds separated from your own money?
- What happens to my balance if you go bankrupt? Ask for the specific mechanism, not "don't worry".
About operations
- What security controls protect my account? Two-factor authentication, user roles, approval flows?
- What limits can I set? For users, payments and software/API access.
- How quickly can I move my money out? Rails, cut-off times, limits.
- Where is this written down? The terms and conditions, not just the website.
Tip: if a provider is vague on questions 3, 4 or 6, treat that as an answer.
Firma's answers
The same ten questions, answered as clearly as we can today:
- Are you a bank? No. Firma is a regulated financial technology company, not a bank.
- Who holds the funds? Firma doesn't hold client funds itself. Fiat payments are processed through partner banks, which we don't name publicly.
- What is my balance legally? Balances on Firma accounts are digital stablecoin tokens, not bank deposits.
- esisuisse? No. Firma balances are not covered by the Swiss depositor protection scheme (esisuisse).
- & 6. Separation and insolvency: your claim is against the token issuer named in the account terms, not against a Swiss bank. Read the terms before you open an account, and ask our team (in the app) how the tokens are backed.
- Security: two-factor authentication is enabled.
- Limits: no fixed payment or monthly cap and no minimum balance; payments remain subject to compliance checks. On the API (Platform plan), any daily limit is one you set.
- Moving money: SIC, Swiss QR, SEPA, SWIFT, ACH, Fedwire, FedNow and stablecoins (USDC on Ethereum and Solana), with the fee shown before you send.
- Where it's written: in our FAQ at firma.cash and in the account terms you accept when you open an account.
A note on stablecoins
Stablecoins aren't bank deposits, so esisuisse doesn't cover them. FINMA has published guidance on stablecoins (Guidance 06/2024, 26 July 2024) that sets out risks and requirements for stablecoin issuers and the banks that provide default guarantees for them.
If you hold Firma balances, ask us how the tokens are backed before you move money. If you receive or hold other stablecoins, understand which token, which issuer and which network, and read How a Swiss Company Can Receive USDC (and What to Do Next).
Bottom line
Ask what your balance legally is, whether it's protected, and what happens if things go wrong. Get it in writing.
Any good provider should answer. Ask us the same questions.
FAQ
How much does esisuisse protect?
Deposits at FINMA-authorised Swiss banks and securities firms are protected up to CHF 100,000 per client and institution.
Is a company's bank account covered by depositor protection?
Yes. Protection is per client and institution, and companies count as clients, so the same CHF 100,000 limit applies.
Are fintech accounts covered by esisuisse?
It depends on the provider. According to FINMA, deposits at FinTech-licensed institutions aren't covered by depositor protection. Firma balances are stablecoin tokens and aren't covered by esisuisse.
Are shares in my custody account covered by esisuisse?
Custody assets aren't deposits. They're legally segregated from the bank's own assets, which is a different form of protection.
What should I ask before moving company money to a new provider?
What your balance legally is, who holds the funds, whether any protection scheme applies, how client funds are separated, and what happens in insolvency.
Open an account with your eyes open
Your Firma balance is digital stablecoin tokens, not a bank deposit, and we tell you that before you sign up. You also get multi-currency balances, every major rail and transparent pricing: money in free, Plus at Fr. 499 a month with 25 bps out. Verification takes about two days, and if we can't verify your company, there's nothing to pay.
Comparing providers? Use Traditional Bank vs Fintech Business Account: A Swiss Founder's Checklist. Getting started? Read How to Open a Swiss Business Account in Days, Not Weeks and 7 Money Mistakes Swiss Founders Make in Year One.
This article is general information, not legal, tax, or investment advice. Talk to a qualified adviser about your situation.
Firma is a regulated financial technology company, not a bank. Banking services are provided through banking partners. Balances are digital stablecoin tokens, not bank deposits, and are not covered by esisuisse.
Sources: FINMA, depositor protection; Swiss Code of Obligations, Art. 717 and 812; FINMA, FinTech licence; esisuisse; FINMA, Guidance 06/2024 on stablecoins; Firma FAQ.
