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There’s never been a worse time to save money in Switzerland

The Local
The Local - [email protected]
There’s never been a worse time to save money in Switzerland
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Falling interest rates have meant saving money in Switzerland is more difficult than ever before - with one canton charging you to save your money.

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Interest rates are at historic lows at 0.05 percent per year, while retirement savings are also only at 0.15 percent on average. 

The report was prepared by Swiss bank comparison site Moneyland and reported in Swiss daily 20 Minutes, said that the low rates were “at a level never reached so far”. 

READ MORE: Looking to make the most out of your money? Where to invest in Switzerland in 2020

Interest rates are so low that holders of larger bank accounts are effectively punished for saving. 

Accounts with over two million francs in the Cantonal Bank of Aargau are charged an interest rate of -0.8 percent - a minimum of CHF16000 - with other banks in the canton also charging a similar amount. 

Fortunately for the majority of Swiss, negative interest rates have not kicked in for savers with less than a couple of million in their bank accounts.

Moneyland said such a move could not be ruled out, however director Benjamin Manz said the introduction of a negative interest rate was not on the agenda for 2020. 

 

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