In the fall of last year, the Swiss National Bank ended its era of negative interest rates, prompting banks to raise rates on savings accounts. The Cantonal banks have led the way, while others are not quite as generous.

As central banks, including the Swiss National Bank (SNB), raise interest rates to combat inflation, higher rates are making themselves felt across the board in Swiss savings accounts. Adults with a savings account currently receive a base interest rate of around 0.19 percent on average. While still paltry, it is more than four times as much as a year ago, when the average was 0.04 percent, according to a report from online comparison service Moneyland (in German) Tuesday.

Some banks are offering a maximum of 0.65 percent or even more on bonus savings accounts. But as the broad Moneyland comparison shows, not all banks are so generous. The cantonal banks stand out for their generosity, while the country's large banks are stingy by comparison. 

Golden Opportunity

Of the five largest Swiss banks, Zuercher Kantonalbank is the most generous with 0.5 percent interest, while Postfinance offers a rate of 0.4 percent, more than twice the Swiss average. UBS offers no interest on savings accounts, while Credit Suisse and Raiffeisen Switzerland have also been miserly, offering a far below-average interest rate.

Moneyland explains the lower rates because larger banks are often less dependent on new customers and don't need to offer higher rates to attract new customers. For these institutions, the loss of customers is not seen as the threat it is to smaller institutions. In any case, the end of negative interest rates offers a golden opportunity for large financial institutions to expand their customer base in one go.

Caveat Emptor

But those seeking higher rates should be on the lookout for bait-and-switch clauses. Many bank accounts with higher interest rates have stricter withdrawal conditions. The interest rate of 0.6 percent on the Schaffhauser Kantonalbank's Account Plus only applies up to an amount of 20,000 francs. Other savings accounts, such as the Top savings account from Clientis Spar- und Leihkasse Thayngen and Clientis BS Bank Schaffhausen, have a notice period of twelve months for a withdrawal.