“Force your bank to react to this”: Now the head of the Central Bank also advises you to change banks

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Ulrich Rotzingerhead of economy

Why isn’t there a faster way to pass on higher interest rates? Many people are asking themselves this right now when checking their savings accounts. Banks are currently among the biggest beneficiaries of the reversal in interest rates. You will receive interest between 1.25 and 1.75 percent on the funds you deposit with the Swiss National Bank (SNB). The majority of savers can only dream of interest rates of this magnitude. They watch inflation erode mini interest rates and weaken the purchasing power of their savings.

But no one needs to do anything and do nothing. “If you switch to another bank that pays more interest, this will cause your previous bank to react,” advises Thomas Jordan (60) in an interview with “NZZ am Sonntag”. Urging customers to take responsibility, the SNB Governor urges people to switch banks in the competition for higher interest rates.

Compare interest rates, beware of limits

Jordan also sympathizes with financial institutions that will first have to normalize their margins after the phase of negative interest rates. “I would like to remind you that interest rates for savers were mostly zero before, despite the negative base rate,” Jordan said. After margin normalization is completed, competition between banks will cause customer deposit interest rates to increase again. “This process has already begun”

More about interest and savings

Broad overview of savings accounts

This is how much interest banks now pay on your savings

Almost no one changes banks

Bank customers don’t care about high savings interest rates

Inflation threatens savings

You should pay attention to these to avoid losing money

Adult savings accounts in Switzerland have an average interest rate of only around 0.8 percent, according to comparison portal Moneyland.ch. But there are also upward extremes. At the same time, the Portal notes: “The highest interest rates are usually valid only up to a certain limit.” After that, there is now only a lower interest rate or no interest at all.

Source :Blick

Tim

I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.