Savings interest rates remain low: It’s your fault if you don’t switch banks now

class = “sc-cffd1e67-0 fmXrkB”>

Two weeks ago Blick’s headline was “Bank customers don’t care about high savings rates.” But as a study by comparison service Moneyland shows, it’s certainly worthwhile to take a closer look at savings interest rates.

Savings interest rates increased significantly throughout the year: at the beginning of 2023, the average savings interest rate for adults was still 0.19 percent. By the end of 2023, savers will receive an average of 0.8 percent on their adult savings accounts. The average interest rate on savings accounts increased by more than 0.6 percentage points last year.

The interest rate on youth savings accounts in Swiss francs was 0.52 percent on average at the beginning of 2023. It currently has an average interest rate of 1.16 percent. The interest rate on 3a savings accounts increased from an average of 0.26 percent at the beginning of the year to 0.98 percent, and the interest rate on benefits accounts increased from 0.1 percent to 0.54 percent.

big differences

But there are important differences. Moneyland writes that the best savings accounts for adults already offer 2 percent interest. The worst is 0 percent. Interest rates between banks have increased significantly since the beginning of the year.

In this regularly updated overview, Blick shows how high savings interest rates currently are at various banks.

Medium-term bonds or fixed-term deposit accounts are becoming increasingly popular among savers, according to Moneyland. The average interest rates of medium-term bonds are currently 1.34 percent for a one-year maturity and 1.42 percent for a ten-year maturity. They almost never increase as maturity increases.

Good for banks

Most banks are currently able to benefit from high interest margins. According to Moneyland, many people would only adjust interest rates on customer balances if they feared losing customers: “The still relatively low willingness of Swiss bank customers to switch is also leading to lower interest rates on savings.” According to the research, small banks offer the most attractive conditions because they want to attract new customers.

Many economists expect central banks to cut interest rates again in 2024. Moneyland believes Swiss savings interest rates are unlikely to fall in the next half of the year and, on some accounts, will rise further. This is because average savings interest rates are still low compared to basic interest rates. (SDA/rae)

Source :Blick