Interest Rates of Swiss Savings Accounts in Freefall

Swiss savings account interest rates are collapsing again. A moneyland.ch analysis reveals that in July 2025, adult savings account holders earn an unweighted average of just 0.18 percent interest per annum on their savings. “In simple terms, that means Swiss banks now pay just 1.80 francs per year for every 1000 francs of your savings account balance, on average,” clarifies Ralf Beyeler from moneyland.ch.

The evaluation is based on data from the moneyland.ch savings account comparison, which accounts for around 150 different savings accounts from Swiss banks.

The short phase of slightly higher interest rates is already over

The ongoing drops mark the end of a nearly three-year phase in which interest rates climbed slightly above their long-time lows. For a long period leading up to the autumn of 2022, Swiss savings accounts yielded almost no interest at all, with the unweighted average interest rate being only around 0.05 percent at the tail end of the low-interest period. “That translates into a return of just 50 centimes for every 1000 francs of savings account balance,” explains Ralf Beyeler. But banks began to raise their interest rates after the Swiss National Bank (SNB) increased its key interest rate.

The comprehensive analysis revealed both the average interest rate across all included Swiss savings accounts, and the savings account that has had the highest average interest rate across the past three years (refer to the graphic). The SNB’s key interest rate is also included in the graphic for the sake of comparison. The key interest rate has a strong impact on the development of savings account interest rates.

A look at the data shows that the average savings account interest rate peaked at 0.82 percent interest per annum in the spring of 2024. Since then, the average rate has fallen sharply. Even the highest-yield Swiss savings accounts now deliver much lower returns, compared to a year ago. The best current offers are now around one percent interest per annum, compared to around two percent a year ago. But the decline in the interest rates of the highest-yield accounts, in terms of a percentage, is less drastic than the average decline across all savings accounts.

Changing banks can help maximize returns

The moneyland.ch analysis reveals major differences between different Swiss banks. There are savings accounts with above-average interest rates. “The highest-yield Swiss savings accounts pay more than double the average interest rate across all accounts,” observes Ralf Beyeler.

Savers have the power to optimise returns on their savings by keeping their money at banks that pay higher interest. “Simply letting your money sit in a low-yield account will cost you interest,” concludes moneyland.ch expert Ralf Beyeler. Optimising your savings does not require a complete change of banks, as many Swiss banks let you open just a savings account as a stand-alone product. “Many banks know that Swiss savers prefer to stick with one bank, and avoid changing service providers. That placidness is one of the reasons why banks can get away with having unfavourable interest rates,” says Ralf Beyeler.

But high-yield savings accounts can also come with certain drawbacks. “Savings accounts with high interest rates often come with limitations on withdrawals. It is important to carefully compare the terms and conditions as well as the interest rates,” advises moneyland.ch expert Ralf Beyeler. You can use the interactive Swiss savings account comparison on moneyland.ch to get a comprehensive overview of savings account offers from many Swiss banks.

Ralf Beyeler advises savers to carefully read the fine print before opening a new savings account. Points to pay particular attention to are the limits on withdrawals and the required notice periods. Checking the terms and conditions can help you avoid unpleasant surprises, especially when dealing with larger amounts of savings.

You can find more practical information in the moneyland.ch guide to choosing a savings account.

Interest rates are at historically low levels

The SNB publishes statistics for the development of Swiss savings accounts over the past nearly 200 years. While the way in which the statistics are calculated has changed over time, the data still offers a good indication of how interest rates on savings have developed in Switzerland.

Over the 167-year period between 1830 and 1997, interest rates always remained above two percent per annum, on average. The first time they fell below that threshold was in April 1997. The last time the average rate sat above one percent per annum was in December 2002. It is interesting to note that in most of the nearly 200 years for which statistics are available, the average interest rate was between three and four percent per annum. The average rate climbed to around five percent per annum in the mid-1970s and the early 1990s.

The historical data makes it possible to relativize the interest rate developments we have observed over the last three years. Both the moneyland.ch analysis and the data published by the SNB show that in recent years, the average interest rate has consistently been below one percent per annum. In the spring of 2024, the average interest rate was similar to that seen in 2008 – the year of the financial crisis. But the average rate still sits above the 0.10-percent mark we saw between 2015 and 2022.

Savings accounts are secure but unprofitable

Using a savings account makes sense for your emergency fund. Savings accounts are relatively secure and the value of your account balance does not fluctuate. The disadvantage is that the yields are relatively low. 

Broadly-diversified investments in stocks and other securities can potentially deliver much higher returns than savings accounts over long terms. But the value of your assets can fluctuate heavily, especially in the short-term. The risk is that the price of your assets could fall at a time when you need to access your money. In the worst-case scenario, you could be forced to sell your investments at a loss in order to obtain the needed money.

Another point to consider is that not everyone is able to handle the ongoing fluctuations that come with investing in securities. Some people are prone to panicking and selling their securities when prices fall, instead of waiting for their value to recover. It is important to only invest in securities if you are emotionally capable of accepting fluctuations. “If a drop in the stock market would keep you up at night, you are better off avoiding securities and placing your money in a savings account instead,” advises Beyeler.

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