Buying Swiss Kassenobligation

Are "kassenobligationen" from Swiss banks similar to CODs or fixed deposits? Are interest rates fixed or variable? Are these a safe alternative to keeping money in a Swiss savings account?

Hi there,

Medium term notes (Kassenobligationen) are similar to bank bonds. Banks issue these notes to raise capital and guarantee the repayment of the debt - plus interest - themselves. Medium term notes have fixed yield rates across their entire maturity period, which is an advantage over savings accounts which have variable interest rates.

Before buying medium term notes it is important to check whether teh issuing bank charges custody fees for their safekeeping. These fees can cut into your profits or even surpass the yields you earn - leading to a loss.

You can compare medium term notes from Swiss banks using the moneyland.ch medium term note comparison.

Best regards from Moneyguru

You can find useful tips for optimizing investments in Swiss medium-term notes here:
Fixed deposits and medium-term notes: Investment tips