In May 2024, moneyland.ch repeated its December 2023 analysis of interest rates for savings accounts, retirement accounts, private accounts, fixed deposit accounts, and medium-term notes.
The results show that “the climb in interest rates is already ending just as things were starting to turn around,” in the words of moneyland.ch CEO Benjamin Manz. Individual banks have begun to lower their interest rates for savings accounts, pillar 3a savings accounts, and vested benefits accounts again in April and May 2024. The interest rates of the more volatile medium-term notes and fixed deposits have already fallen more sharply.
Average interest rates have sunk slightly
The average interest rate of Swiss franc savings accounts for adults has fallen to 0.79 percent from 0.8 percent in March 2024. Differences between accounts remain large, at 2 percent per annum for the highest-yield savings account, and 0 percent per annum for the lowest-yield account.
Some banks have also begun tightening their interest rates for youth savings accounts. As a result, the average interest rate of 1.15 percent in May 2024 is slightly lower than the 1.18 percent we saw in March 2024. The highest-yield youth savings accounts still have a 2 percent annual interest rate.
First interest rate cuts for retirement accounts
In May 2024, the average interest rate for pillar 3a savings accounts is 0.98 percent, with rates varying between 0.25 and 1.6 percent. The average annual interest rate for vested benefits accounts is 0.56 percent, with rates ranging between 0 and 1.75 percent. Those rates are slightly lower than the average interest rates we saw in March 2024.
Bigger cuts for fixed-interest offers
Medium-term notes and fixed deposits remain popular. The interest rate remains constant for the entire chosen term. But the interest rates applicable to new notes or accounts change much more frequently than those of savings accounts. In total, the interest rates of medium-term notes have gone down across all investment terms since the start of the year.
The average interest rates of medium-term notes and fixed deposits in Swiss francs are currently 1.25 percent per annum for a one-year term, 1.06 percent per annum for a two-year term, and 1.07 percent per annum for a three-year term. The average interest rate is slightly higher for each additional year in the fixed term, reaching an average of 1.26 percent for a ten-year term.
The current highest-yield offers are 1.6 percent per annum for a one-year term, 1.7 percent for a two-year term, and 2 percent for a ten-year term. That makes short-term fixed deposits and medium-term notes relatively attractive compared to many savings accounts, in spite of falling interest rates.
What does the future hold?
“Future interest rate developments remain uncertain, and depend on many different factors,” says Benjamin Manz. Future announcements from the Swiss National Bank (SNB) are particularly relevant. If the SNB lowers its key interest rate again, then we can expect further reductions in interest rates for savings to follow.
Medium-term notes will likely see further fluctuations in their interest rates. moneyland.ch expects that some banks will further reduce their interest rates for savings accounts. But the savings account interest rates at most banks will likely remain unchanged over the coming months.
You can compare interest rates using the interactive savings account comparison on moneyland.ch.
Methodology
For the analysis, moneyland.ch studied the May 2024 interest rates of savings accounts, pillar 3a savings accounts, vested benefits accounts, private accounts, medium-term notes, and fixed deposit accounts. Average interest rates are calculated based on the arithmetic average (unweighted across all offers).
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