Swiss Banks’ Interest Rates. How Much Cash Can You Deposit in Switzerland?

In uncertain times, depositing funds with a reliable bank in a safe offshore jurisdiction is a winning option. Even though tax advantages are no longer available to non-residents in Switzerland, Swiss banking remains a competitive solution. Having a Swiss bank account is a bit like owning an insurance policy that can provide a safety net when you need it most. No wonder about 30% of offshore account holders bank in Switzerland.

However, it is important to note that opening a Swiss bank account can be complicated. You need to follow strict rules and regulations, have a good plan, and comply with various requirements. This article talks about how you can deposit your money and increase your wealth in Switzerland. It also covers information about interest rates and other important details you need to know.

Why Deposit Your Assets in Switzerland?

Swiss banking, with its roots dating back to the early 18th century, has developed into one of the main economic sectors and hallmarks of Switzerland. 

Over the centuries, Switzerland has earned a reputation as a major international financial center thanks to its neutrality, national sovereignty, stable political environment, and banking secrecy laws.

Having a Swiss bank account is often viewed as a key to the global business world for many reasons:

• Privacy. Swiss law guarantees banking secrecy and data protection. Swiss banks offer top-notch asset protection and exceptional banking confidentiality. Each year, they invest a considerable amount of funds in enhancing security standards.
• Reliability. The Swiss economy is considered one of the strongest in the world. The Swiss franc is one of the world’s strongest currencies. Customers who deposit funds in Swiss francs can trust that their assets are secure. Switzerland has a deposit insurance system in place, which ensures that depositors receive financial compensation in the event of a financial institution’s bankruptcy.

Although the process of opening an account with a Swiss bank may appear complex and the compliance requirements may be rigorous, the number of international clients choosing Swiss banks as their financial service provider remains steady. This is because foreign nationals can benefit from the diverse range of opportunities, including asset management, that Swiss banks offer.

Open a Deposit in Switzerland: Key Requirements 

Swiss banks’ negative or low rates on deposits often cause confusion among people. However, low-interest rates demonstrate the financial institution’s high reliability. By offering lower rates, the bank reduces the level of risk, as opposed to offering high rates that could result in the bank transitioning from a stable financial institution to bankruptcy.

 To safeguard your assets from external negative factors by opening a deposit in Switzerland, it is important to carefully review the bank’s policies and deposit conditions.

Foreign depositors interested in the best Swiss bank should take note of the following conditions:

• a minimum trust deposit of CHE 50,000 
• a minimum time deposit of CHE 250,000 or its equivalent in another currency.
• deposit currency options include the Australian dollar, British pound sterling, Canadian dollar, New Zealand dollar, Norwegian krone, Japanese yen, etc.
• accounts denominated in Swiss francs are not subject to negative interest rates.

To keep a Swiss bank account open, clients have to pay maintenance fees that depend on the deposit currency and value. On average, you should expect to be charged between CHF 500 and CHF 2,500 for the maintenance of a Swiss savings account. Besides, you will need to make the minimum deposit (usually CHF 5,000). Our facilitation services are payable separately.

Why should you need facilitation in a Swiss bank account opening? Please note that non-resident banking in Switzerland can be challenging or even impossible for some foreign applicants. Some Swiss banks may not accept non-resident clients. Besides, many Swiss banks require that non-resident account holders make a minimum deposit of USD 1,000,000 and maintain a significant balance. Compliance with tax reporting obligations is also critically important, including the FBAR form that is mandatory for US account holders. It needs to be submitted to the Internal Revenue Service (IRS), the tax authority in the USA. The Swiss Financial Market Supervisory Authority (FINMA) oversees Swiss banks and their compliance practices. Awareness of and adherence to all the rules and regulations without professional help can be a challenging task. Therefore, we offer assistance of our experts specialized in opening bank accounts in Switzerland.

What affects deposit interest rates in Switzerland?

Interest rates on deposits depend on the discount rate of the Central Bank. A similar model applies in other countries, where Central Bank rate hikes have become a permanent phenomenon in 2023. At the time of writing, the discount rate in Switzerland is fixed at 1%. Experts predict that the Interest Rate in Switzerland will likely stay at 1.25 percent in 2024 and 1.00 percent in 2025 for a long time.

Other factors that affect Swiss bank savings account rates in 2023:

• the client’s nationality and risk profile rating (often associated with international sanctions and blacklisted countries)
• how much cash you can deposit with a Swiss bank
• the main currency of the deposit.

Interest rates on deposits with a Swiss bank

The maximum interest rate for personal deposits at Swiss banks during the first quarter of 2023 varies based on the term and currency of the deposit. This applies to regular deposits.

Regular deposit

Term	CNH	USD
1 month	1.25%	3.0%
3 months	1.5%	3.25%
6 months	1.5%	—
12 months	1.5%	—

Fiduciary deposit

Note: The bank reserves the right to modify deposit rates and terms. To get information on the interest rate in a Swiss bank, please contact our experts.

Investment options in Switzerland for individuals

Opening a usual deposit account is not the only option for generating income. Some of the investment options available in Switzerland include:

• A fiduciary deposit (see rates above) is a type of time deposit, which is made on behalf of the client with a bank located outside Switzerland. A fiduciary deposit allows the placement of free assets in several currencies at a time. The interest rate on a fiduciary deposit in the Swiss bank depends on the currency and term of the account.
• Securities trading – independent investment in stocks, and bonds. This method allows the individual to receive passive income. With a properly developed strategy, each client can expect an income of 10% per annum.
• Private banking and external asset management (EAM) – are the main activities of Swiss banks. Asset management bonds, stocks, and portfolios are available in USD, EUR, GBP, and CHF, the minimum deposit is CHF 500,000 or equivalent.

To sum up, opening a bank account in Switzerland can be a perfect solution for your family’s well-being and for future generations. 

In today’s turbulent world, it is especially important to have a strategy on how to legitimately protect your personal and corporate capital.