Barely had the Swiss National Banks rate hike announcement been made when the first Swiss banks started announcing increased rates on savings accounts for their customers.
As widely expected, the Swiss National Bank (SNB) raised its benchmark rate by 50 basis points to 1 percent. Given the expectations, Swiss banks had plenty of time to prepare a response.
And rapid that response was. The cooperative Wir Bank was the first off the blocks to offer higher rates on various accounts. For ordinary savings accounts, rates rise with immediate effect to 0.35 percent from 0.15 percent, and for the 60+ savings account to 0.5 from 0.25 percent. The pillar 3a supplemental retirement account will now earn interest at 0.7 percent instead of 0.4 percent.
Zurcher Kantonalbank (ZKB) was also quick to make an announcement, raising the savings rate to 0.5 percent on up to 25,000 francs starting in January. Previously, deposits garnered a minuscule 0.01 percent. For pillar 3a retirement accounts, the new interest rate will be 0.25 percent, rather than 0.05 percent currently.
The Zuger Kantonalbank was quick to announce, but slower to implement its new rates, waiting until the beginning of February. The savings rate is 0.3 from 0.1 percent on up to 100,000 francs, while a 3a account will earn 0.6 percent rather than 0.25 percent.
Other banks will likely raise their interest rates on similar accounts, although generally savings interest rates lag significantly behind other developments.
