(Image: Shutterstock)
Donnerstag, 17. Oktober 2024 09:33
Significant Discrepancies in Fixed Deposit Rates
Press «play» to listen to this content
1x
Playback Speed- 0.5
- 0.6
- 0.7
- 0.8
- 0.9
- 1
- 1.1
- 1.2
- 1.3
- 1.5
- 2
significant discrepancies in fixed deposit rates. there are substantial differences in interest rates for fixed deposit accounts and cash bonds. nevertheless, a market survey revealed that these options provide an alternative to standard savings accounts. currently, fixed deposit accounts and cash bonds yield slightly higher returns than the average savings account for short-term investments. however, there are marked disparities in interest rates among banks, according to a market survey conducted by the comparison platform moneyland.ch. the current average unweighted interest rates are 0.73 percent for one-year fixed deposits and cash bonds, 0.65 percent for two-year terms, 0.72 percent for five-year terms, and 0.84 percent per year for ten-year terms. in comparison, savings accounts for adults yield an average interest rate of 0.59 percent. higher returns than saving accounts. «cash bonds and fixed deposit accounts are currently offering slightly higher interest rates on average than savings accounts,» says benjamin manz, managing director of moneyland.ch. «the differences between maturities are not significant; the rates for one-year fixed deposits are even comparable to those for ten-year deposits. therefore, short-term investments with maturities of one to two years are particularly suitable as an alternative to savings accounts.». wide range of offerings. however, there are considerable variations between banks. the interest rates for one-year fixed deposits among different providers range from 0.25 percent to 0.9 percent. other maturities also show significant discrepancies. the same holds true for savings accounts, where rates for adults range from 0 percent to 1.75 percent per year. additionally, depending on the bank, account management or custody fees may apply for cash bonds and fixed deposit accounts, which can reduce the effective interest rate.
Significant Discrepancies in Fixed Deposit Rates
There are substantial differences in interest rates for fixed deposit accounts and cash bonds. Nevertheless, a market survey revealed that these options provide an alternative to standard savings accounts.
Currently, fixed deposit accounts and cash bonds yield slightly higher returns than the average savings account for short-term investments. However, there are marked disparities in interest rates among banks, according to a market survey conducted by the comparison platform Moneyland.ch.
The current average unweighted interest rates are 0.73 percent for one-year fixed deposits and cash bonds, 0.65 percent for two-year terms, 0.72 percent for five-year terms, and 0.84 percent per year for ten-year terms. In comparison, savings accounts for adults yield an average interest rate of 0.59 percent.
Higher Returns than Saving Accounts
«Cash bonds and fixed deposit accounts are currently offering slightly higher interest rates on average than savings accounts,» says Benjamin Manz, Managing Director of Moneyland.ch. «The differences between maturities are not significant; the rates for one-year fixed deposits are even comparable to those for ten-year deposits. Therefore, short-term investments with maturities of one to two years are particularly suitable as an alternative to savings accounts.»
Wide Range of Offerings
However, there are considerable variations between banks. The interest rates for one-year fixed deposits among different providers range from 0.25 percent to 0.9 percent. Other maturities also show significant discrepancies.
The same holds true for savings accounts, where rates for adults range from 0 percent to 1.75 percent per year.
Additionally, depending on the bank, account management or custody fees may apply for cash bonds and fixed deposit accounts, which can reduce the effective interest rate.
