Interest rates on bank deposits are something that a young generation of investors may never have seen. But unlike unicorns and the Loch Ness Monster, earning money on bank deposits is no longer a thing of legend.
Now neobank Yuh, a joint venture between Postfinance and Swissquote launched in the spring of last year is offering interest rates on cash balances up to 25,000 Swiss francs, dollars or euros as of September 1, Yuh said in an emailed statement Monday. Deposits in Swiss francs, euros, or US dollars are eligible and can be held in payments or savings accounts.
The Swiss franc and euro deposits will earn 0.25 percent interest, while US dollar deposits will garner a 0.50 percent rate. While individual currency deposits are limited to 25,000, Yuh said they can be combined to a cash maximum of 75,000. In addition, negative interest rates will no longer be charged on assets over 100,000.
Tighter Monetary Policy
Several banks moved to eliminate some or all fees on bank deposits following the decision by the Swiss National Bank (SNB) to raise its benchmark rate by 50 basis points at its June 16 policy meeting. While still negative at -0.25 percent, the move was a signal that the era of negative rates is coming to an end. The SNB will announce its next policy decision on September 22.
«Yuh enjoys growing popularity and currently already counts over 75,000 'Yuhser*s'. This is not least due to the fact that we listen to our community and prioritize their needs wherever possible. In the wake of the current central bank measures, we are ending the ongoing era of no interest and proactively supporting our 'Yuhser*s' in saving,» Markus Schwab, CEO of Yuh said.
