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
Life situations: Taking a loan · Investing and Wealth Building
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
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 it yourself: Nominal to Effective Interest Rate
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Effective annual rate5.12 %
- Continuous compounding
- 5.13 %
- Effective annual rate
- Continuous compounding