As in 2014, the low interest rate environment is driving banks to lower yield rates this year as well. The Swiss National Bank’s adoption of negative yield rates will likely hasten this trend.
Among major banks, UBS has positioned itself at the tail end of the Swiss yield rate landscape insofar as private customers are concerned.
Because many smaller banks base their rates and fees on those set by major banks, UBS’ decision is likely to fuel the overall slide in yield rates.
In the recent past, yield rates offered by UBS were at the lower-middle end of the comparison chain. Now, they are right at the bottom.
UBS vested benefits accounts and 3a accounts now hold last place when compared to those offered by other Swiss banks. A comparison of UBS yields with those offered by other banks is highly recommended.
Yield reductions for savings accounts
UBS savings account CHF: from 0.05% to 0.025%
UBS savings account EUR: from 0.05% to 0.01%
Yield reductions for retirement accounts
UBS Fisca account: from 1% down to 0.7% (currently the lowest yield rate in Switzerland)
UBS Vested Benefits Account: from 0.5% down to 0.3% (currently the lowest yield rate in Switzerland).
UBS Pillar 3b unrestricted retirement provision: from 1% down to 0.7%.
Yield rates for medium term notes (bank bonds)
General decrease in all yield rates for UBS time deposits.
Time deposit CHF 10 years: from 1.25% down to 1.125%.
Time deposit EUR 10 years: from 1.25% down to 0.875%.
Yield decreases for business accounts
UBS Business Current Account: from 0.01% down to 0%.