Swiss fixed-term deposits offer a fixed interest for a defined period of time in advance (often between 1 month and 12 months). Generally, Swiss fixed-term deposits are free of charge.
Fixed-term deposits are secured by the Swiss deposit protection. As a rule, fixed-term deposits in Switzerland are available for amounts starting at 100,000 Swiss francs (in some cases, lower amounts starting at 5,000 Swiss francs are available). The interests of fixed-term deposits are subject to the Swiss anticipatory tax of 35%.
Fixed-term desposits: advantages
+ The interest is fixed.
+ In case of a falling interest rate environment, your interest rate stays fixed.
Fixed-term deposits: disadvantages
- The interest rate is quite low at the moment – even lower than the interest rates of savings accounts overall.
- Low flexibility: your money is tied up for a fixed period of time.
- In case of a rising interest rate environment, your interest rate stays fixed.
In Switzerland, other investment forms are more popular than fixed-term deposits – for example savings accounts (although they do not offer a fixed interest rate).