Several central banks raised key interest rates again significantly in September in order to counteract inflation, which has risen to new highs. The Swiss National Bank (SNB) is no exception. It recently raised key interest rates by a whopping 75 basis points to 0.5%. This marked the end of the era of negative interest rates that began in 2015.
With the turnaround in interest rates, the SNB has raised hopes among some investors that they will finally receive interest again when parking money in (savings) accounts. However, reality paints a different picture. Interest on amounts held in accounts remains unchanged at commercial banks in Switzerland at 0%. Depending on the bank, there may be a slightly higher interest rate on savings deposits. Moreover, real interest rates remain significantly negative due to the current high rate of inflation. Nonetheless, there are interesting alternatives for investors. Money market investments currently offer a historically high surplus return compared to the traditional account solution.