CHF accounts with best interest rates: discussion

Banks, Insurances & Third Pillar
384

I typically invest excess cash. The small amount I leave in my current account earning zero as it is too little to fuss over.

Larger amounts can be put into bond ETFs, MM funds, BOXX etc.

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385

Have not seen very good offers recently, but as a very safe option (with state guarantee) for companies, I like SZKB’s offer: Deposit-Konto - Schwyzer Kantonalbank
Relatively high difference to SARON, but much better conditions than other cantonal banks (or even non-cantonal banks without a state guarantee).

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386

Neon is changing their interest structure.
from 1st may: 0.75% until 25k and 0.5% above it.

388

What do you mean?

390

Btw. Neon from next month will have worse interest rates than a Raiffeisen account. (1.1% < 20000, 0.7 > 20000)

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391

Ah, I see. Well, they need to make money in some way.

I wouldn’t park significant amounts of money with neon anyway, but I’ll gladly profit from the cheap foreign card transactions and free transaction fee for buying an FTSE All-World with no custody fees.

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392

That was already the case, wasn’t it? Neon offered 0.9% up to 25k.
The Raiffeisen in my region offers 1.1% up to 50k, then 0.7% from and above 50k.
The 20k is the maximum quarterly withdrawal limit without having to pay a withdrawal penalty.

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393

What is the best rate for notice ≀ 3 months (excluding WillBe, Radicant and Alpian)?
1.4% from Migros bank (Bonus-Sparkonto Plus)?

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394

Good news: I received a message from Cler confirming that the 1.3% interest rate of Zak Sparen won`t change until further notice.

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395

yep. up to 100k, but only 10k withdrawal per year for free (everything over that 2% fee).

moved some cash there just to reactivate the zak account a bit


396

Is more possible with a notice period of e.g. 3 months?

398

With latest update from SNB - CLER seems to be the best “special” option at the moment? (1.65% for 1 year from opening the account)
I’ll be moving my wiLLBe funds there.

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400

I am in your shoes (wiLLBe account), but I have already a CLER sparkonto and the special rate expired in June.
Under the current conditions, if I moved the money now IÂŽd enjoy the bonus interest only until the end of 2024.
Maybe itÂŽd be better for me to look for another solution.
Interestily enough, my 2023 Wir Sparkonto Plus became a “Treue sparkonto” and it still gives 1.3%: let’s see how it evolves; the only limitation is the yearly withdrawal limit (20k).

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402

YUH just wrote me that they’ll lower the interests from 1% to 0.75%. “good” new is I’ll have 0 cash after paying taxes this weekend :slight_smile:

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403

I was considering opening Festgeld accounts for the non-emergency part of my cash. Something like: have multiple accounts where something is maturing every 6 months such that if I need the money for rebalancing or if my circumstances change I wouldn’t have to wait long until a tranche becomes available.

However I’m looking at the interest rates on the Festgeld accounts and I really don’t see the appeal of them at all. The higher interest rate compared to freely accessible savings accounts is maybe 0.5%.

Even with say 100k total that amounts to an extra 500CHF per year, on which taxes have to be paid.

That for the all the effort of setting the accounts up, needing to deal with them when they mature etc.

Am I thinking about these the wrong way? Do others use these and if so how?

404

Just after writing, it occurred to me that perhaps the spread between the Festgeld and instant access accounts is because of the expectation that interest rates are going to fall in the next months, and hence a 0.5% difference today is actually going to be a 1.0% difference down the line
?

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405

Fixed term deposit have a duration risk and yes they are pricing in future changes in interest rates as well. It also depends on what the business model of the bank is. For example if Cembra offers higher rates for 2 year medium term notes then most likely they also loan to higher interest borrowers (higher risk)

For the sayings accounts, the banks take a cut :scissors:. So the interest is always lower than what SNB is offering. This is a pity that the cut is higher than what we would like.

I think the best comparison to bank interest rates would be 1M or 3M money market funds.

406

I had some CHF Festgeld (12M) at CIC (half ended, other half ending soon) for 2% p.a. I have some 2 and 3y Obligationen at Cembra running, for 1.4 to 2% p.a.
No risk till 100k due to esisuisse, and ok’ish return (esp. now with savings accounts at well below such interest rates (but could’ve come differently).

But yes, with interest rates where they are now, I will probably not go that way any more, once these fixed term monies expire. Savings account for 0.3% instead of Festgeld for 0.6%, the difference is too small for the “hassle” and reduced flexibility.

→ this time round you “missed” the short hop-on slot 2022-2023 for CHF Festgeld (IMO). But you also didn’t miss any crazy-big opportunities.

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407

Aaand it’s gone.
1.4% from today.

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408

And with that change, to me Savings account Plus - our highest interest rates | Cembra seems like the winner

  • 1.4% (same as Cler)
  • But the account opening process seems easier, all online

Does anyone (@oslasho) know if these 1.4% are already “adjusted” to latest interest rate drops, or might still go down (to e.g. 1.15%)?
They state “as of 1.8.2024” in the footnote, so I’m a bit sceptical if it stays that way. (Or if they just forgot to update the footnote date too :slight_smile:)

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