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The Swiss National Bank, the Franc and Interest Rates: What Savers and Borrowers Should Know

How the policy rate affects savings, mortgages and the exchange rate.

5 min read · Currency & Economics

The Swiss National Bank sets the policy rate to keep inflation low and stable.

For savers

Savings account rates follow the policy rate with a delay. In low-rate periods, interest often does not offset inflation.

Effective annual rate
Continuous compounding

Effective annual rate – depending on Compounding periods per year

Example with default values. Open the calculator →

For borrowers

SARON mortgages follow the policy rate.
Fixed-rate mortgages follow market expectations.

The franc

What to do

Compare savings rates yearly.
Stagger fixed mortgage tranches.
Keep some foreign currency exposure for diversification.

Rate decisions influence the exchange rate. Convert between rate types with the interest rate conversion calculator.

Try the calculators

💱 Currency & Economics

Nominal to Effective Interest Rate

Convert a nominal rate with periodic compounding into the effective yearly rate.

🏠 Mortgage & Property

Fixed vs. SARON Mortgage

Compare total interest on a fixed-rate and a variable SARON mortgage under a rate scenario.

💱 Currency & Economics

Savings Account After Tax & Inflation

Real return of a savings account once tax and inflation bite.

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Inflation and Your Money: Protecting Purchasing Power in Switzerland

Why low inflation still matters, which assets keep up and how to keep your savings working.

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Currency Risk for Swiss Investors: Why the Strong Franc Matters

How exchange rate moves change returns on foreign assets and when hedging helps.

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Salaries and the Cost of Living in Switzerland: Is the Gap Worth It?

How to compare a Swiss salary with a foreign one after prices, tax and insurance.