The current interest rate level in Switzerland is very low. Will it stay that way? Many have been saying for years that interest rates will rise again and that this will make the real estate sector very risky.
In the following, we would like to explain details, whereby it will become apparent that interest rates will not/may not rise in the coming years and that an investment in a real estate investment is the safest alternative.
In 2018, Switzerland has purchased a total of approximately CHF 10 billion in foreign currencies. foreign currencies such as euros and dollars to prevent the value of the franc from rising further. In 2019, Switzerland again purchased foreign currencies such as euros and dollars for a total of approximately CHF 12 billion. foreign currencies such as euros and dollars to prevent the value of the Swiss franc from rising further.
In 2020, Switzerland has purchased a total of approximately CHF 110 billion. foreign currencies such as euros and dollars, so that the value of the franc again does not rise further.
This factor alone, that Switzerland has acquired over 10 times the amount of foreign currencies in 2020, is a clear sign that interest rates will not and must not rise further.
The franc is currently already as strong as it was 5 years ago, but this is not at all as good as it sounds. The export business of the Swiss companies suffers strongly from it, since the prices abroad for your goods are increased, thus less is sold and this leads finally to less conversion. Consequently, Swiss companies have to take austerity measures.
This is not an easy game for the SNB either, as the SNB has to ensure stable prices, but this is very difficult with the strong franc.
To prevent the Swiss franc from rising further, because that would be very detrimental to the Swiss market economy, the SNB's key interest rate is currently at - 0.75%. The commercial banks then pass this on to the customers with the current interest rate for savings accounts of 0.0% to 0.05%. With the annual account fees, this also results in minus interest for the investors.
This strategy is very advantageous, so that no foreign money is invested with the banks, because currently minus interest prevails. Which customer wants to invest capital and still pay for it? This reduces year after year the capital, which should be actually saved and increased.
"Most people do not understand our banking and monetary system.
For if they did, I believe there would be a revolution before tomorrow morning."
Thus, investing capital in Swiss banks is unattractive for national / international clients, which means that no capital is invested in Swiss banks. As a result, the Swiss Franc cannot continue to appreciate in value and our market economy can continue to run successfully.
Here it is clear, the Swiss franc must not rise further and to prevent this, the SNB will continue to have the key interest rate in the minus range for the next few years. If the SNB starts to increase the key interest rate, the further course of interest rates can be observed as a precaution.
Finally, we would like to point out that currently and also in the future, investing and increasing capital is no longer in the main interest of the banks, but only that the Swiss franc no longer gains in value.
| Banks | Savings interest | Q-Base Capital Group AG |
| Raiffeisenbank | 0.050% | 4.25% |
| WIR-Bank | 0.050% | |
| Regiobank (SO) | 0.050% | |
| DC Bank (BE) | 0.050% | |
| Bank Avera | 0.030% | |
| St. Galler KB | 0.025% | |
| Bank Linth (SG) | 0.025% | |
| Luzerner KB | 0.020% | |
| Cembra Money Bank | 0.010% | |
| NAB (AG) | 0.010% | |
| Post Finance | 0.010% | |
| BEKB/BCBE | 0.010% | |
| Zürcher KB | 0.010% | |
| Migros Bank | 0.010% | |
| AEK Bank (BE) | 0.010% | |
| Credit Suisse | 0.010% | |
| Bank Cler | 0.010% | |
| BCV | 0.000% | |
| Basler KB | 0.000% | |
| UBS | 0.000% |
There is nothing more to mention. If you want to increase your capital successfully and safely, come to Q-Base Capital Group AG today.
