Interest rates in Switzerland 2026: policy rate, savings rates and mortgages explained

The policy rate of the Swiss National Bank (SNB) stands at 0 percent, and the SNB confirmed it on 24 September 2026. The ECB and the Fed raised their policy rates in September, so the gap to Switzerland has widened. Savings deposits pay 0.07 percent on average, the highest offers 0.6 to 1 percent. A ten-year fixed-rate mortgage cost 2.05 percent on average in July 2026.

Interest rates in Switzerland affect almost everyone: savers, investors, borrowers and the wider economy. The pace is set by the policy rate of the Swiss National Bank, which has stood at 0 percent since June 2025. Although Switzerland recorded an increase in inflation in recent years, both inflation and the interest rate level remained far more moderate here than in the USA or the eurozone.

This article puts the current interest rates in Switzerland into context, explains the main drivers and shows what investors and prospective property buyers can pay attention to. Each figure carries its own reference date, the most recent being 30 September 2026. The interest rate environment can change quickly.

The key facts in brief

• The policy rate in Switzerland is set by the Swiss National Bank (SNB). It has stood at 0 percent since June 2025, and the SNB confirmed it on 24 September 2026.
• Interest rates in Switzerland are low by global standards.
• Savings accounts pay hardly any interest on average, while the highest offers pay clearly more. When rates are low, the real value of savings can be eroded by inflation.
• A fixed-rate mortgage cost 1.78 percent on average for five years and 2.05 percent for ten years in July 2026.
• Regardless of the interest rate level, diversification spreads the risks in private wealth planning.

How high are interest rates in Switzerland right now?

Interest rate conditions affect almost every part of society in Switzerland. In each case it is specific interest rates that matter, depending on the situation.

There are basically four main types of interest rate:

1. Policy rates: the Swiss National Bank (SNB) sets the policy rate in Switzerland. Banks’ sight deposits at the SNB are remunerated at the policy rate up to a certain threshold, and above that threshold at 0.25 percentage points below the policy rate. At its monetary policy assessment of 24 September 2026, the SNB left the policy rate at 0 percent (source: Swiss National Bank).

Another reference rate is SARON (Swiss Average Rate Overnight), which replaced LIBOR as the main reference rate at the end of 2021. It is calculated daily and is based on the average rate of money market transactions carried out by financial institutions in Switzerland. SARON serves as a reference rate for many Swiss financial products and is calculated and published by SIX (Swiss Exchange). It moves close to the policy rate and stood at −0.04 percent on 29 September 2026 (source: SNB, data from SIX).

2. Money market rates: these are the market rates for short-term funds with terms of up to twelve months.

3. Capital market rates: these are the market rates with terms of more than 12 months and up to 30 years or more. A ten-year Swiss Confederation bond yielded 0.586 percent on 30 September 2026 (source: SNB).

4. Mortgage rates: these rates follow a similar path to money market or capital market rates. However, the conditions depend on further factors such as the customer’s creditworthiness, the business policy of the bank concerned and its refinancing options.

The following sections give a short explanation of the main interest-bearing products and forms of credit, along with the corresponding interest rates in Switzerland.

What savings rates can I get right now?

As the name suggests, a savings account is used to build up capital or hold a reserve. It is therefore particularly suited to short-term investments. Savings rates in Switzerland vary depending on the bank and the type of savings account. On average, banks pay hardly any interest on a savings account. Vested benefits foundations offer similarly low rates on vested benefits accounts. The rate level tracks the development of the policy rate. In most cases, banks offer savings accounts without fees.

The differences between individual banks are considerable. The gap between the market and the top offer shows just how wide this range is: averaged across all reporting banks, the interest rate on savings deposits stood at 0.07 percent in July 2026, with a median of 0.05 percent (source: SNB data portal, interest rates published for new business, as at 1 September 2026). The highest offers on 21 September 2026 were 0.6 to 1 percent, several times the market average. They come with conditions: an annual withdrawal limit of CHF 10,000 or 20,000 or strict withdrawal rules, and in some cases the rate applies only in the first year or only regionally (source: getrates.ch). Youth savings accounts often pay higher rates. Banks also sometimes attract new customers with special conditions for new money.

Compared with private accounts, Swiss savings accounts generally have more restricted withdrawal conditions, often limited to monthly, semi-annual, quarterly or annual withdrawals. Some savers therefore spread their balance across several accounts.

Tip: More about vested benefits at Everon

Interest on medium-term notes, fixed-term and time deposit accounts

In Switzerland, the term fixed-term deposit normally refers to investments with a fixed rate for terms of up to one year. Unlike medium-term notes, they are not securities.

With medium-term notes, fixed-term deposit accounts and time deposit accounts, investors receive guaranteed interest on their deposit for the agreed term. In return, the funds cannot be withdrawn before the end of the term. Fixed rates for set terms also follow the policy rate. In the zero-rate environment, conditions for these short terms are correspondingly low. The specific rates are set by Swiss banks depending on their business policy and calculation basis.

Interest rates for consumer loans

The effective annual rates for personal loans depend on the provider and creditworthiness. The federal government caps the maximum interest rates for consumer loans by law. The Federal Department of Justice and Police adjusts them to interest rate developments according to a fixed formula.

Since 1 January 2026, the following maximum interest rates apply to consumer loans (source: Federal Department of Justice and Police / Federal Administration):

• Cash loans and personal loans: 10 percent
• Overdraft facilities, credit and customer cards: 12 percent

How high are mortgage rates right now?

Mortgage rates in Switzerland vary depending on the type of mortgage, the term and the provider.

The main types of mortgage are:

• Fixed-rate mortgages: these mortgages have a fixed rate for an agreed term. The rates for fixed-rate mortgages vary by term. Averaged across new business, a five-year fixed-rate mortgage cost 1.78 percent in July 2026 and a ten-year one 2.05 percent (source: SNB data portal, interest rates published for new business, as at 1 September 2026). A mortgage broker quoted conditions from 1.51 percent for five years and from 1.60 percent for ten years, as retrieved on 30 September 2026 (source: MoneyPark).
• SARON mortgages: with this form of mortgage, the rate is linked to SARON, plus an individual margin set by the bank. Since SARON is close to 0 percent, it is mainly the margin that shapes the conditions. Averaged across new business, a SARON mortgage with a three-year term cost 1.10 percent in July 2026 (source: SNB data portal), and a mortgage broker quoted conditions from 0.75 percent, as retrieved on 30 September 2026 (source: MoneyPark).

The actual rates a borrower receives depend on various factors. These include the borrower’s creditworthiness, the loan-to-value ratio of the property and general market conditions. Conditions therefore also differ between providers.

Why are interest rates in Switzerland so low?

The interest rate situation in Switzerland is shaped by various factors, including economic, political and market-related ones.

The factors influencing the interest rate level include in particular:

• interest rate trends abroad,
• the inflation rate,
• the economic cycle and
• the monetary policy of the Swiss National Bank.

Rising interest rates abroad also affect interest rate trends in Switzerland. After all, Switzerland needs to remain attractive to foreign investors over the long term.

Inflation and deflation affect market interest rates. With financial investments, a kind of risk premium is demanded when price increases are high, because investors expect to be compensated for the anticipated rise in prices. On this front Switzerland continues to compare well internationally. Inflation stood at 0.8 percent in August 2026, and thus in the range of price stability, which the SNB puts at 0 to 2 percent (source: Federal Statistical Office, Swiss consumer price index, 3 September 2026). According to the SNB, inflation has risen since June mainly because of higher energy prices. The SNB considers its monetary policy appropriate to keep inflation within the range of price stability.

Economic trends also influence the general interest rate level. In times of strong growth, investment increases and with it the demand for capital. As a result, interest rates tend to rise. The effect works the same way when the economy weakens and interest rates fall.

The Swiss National Bank has a direct influence on interest rates, in particular through the policy rate, which is used to steer monetary policy and shape the economy.

How do Swiss interest rates compare internationally?

Compared with the major currency areas, Swiss interest rates are lower. The low interest rate level has a long tradition in Switzerland and is closely linked to low inflation and the strong franc.

In September 2026 the gap has widened. The European Central Bank (ECB) raised its policy rates by 0.25 percentage points on 10 September, and the deposit facility rate has stood at 2.50 percent since 16 September (source: ECB). The US Federal Reserve (Fed) raised the target range for the federal funds rate to 3.75 to 4 percent on 16 September (source: Federal Reserve). The SNB left its policy rate at 0 percent on 24 September. The specific levels change frequently; the gap to Switzerland has persisted for years.

Switzerland could not entirely escape negative influences such as a temporarily elevated inflation rate. Overall, however, an international comparison shows the comparatively stable Swiss economy.

Many reasons for interest rate changes

Central banks make their decisions based on an analysis of economic data and an assessment of the future economic outlook.

One of the main reasons for interest rate changes is inflation. If inflation rises, the central bank can raise rates to reduce the money supply and curb inflation.

Interest rate changes can also occur in response to economic cycles. In times of economic upswing, the central bank can raise interest rates to prevent the economy from overheating. In times of economic slowdown, central banks tend to lower interest rates to stimulate the economy.

Rates are also changed in response to exchange rate fluctuations. If a country’s currency becomes too strong, the central bank may lower rates to limit the inflow of foreign capital and stabilise the exchange rate.

It should also be noted that international interest rate changes have an indirect impact on Switzerland. Influencing the exchange rate affects the export economy, for instance. An increase in rates abroad may also lead to money being withdrawn from Switzerland. And as experience shows, a slowdown in the European economy also affects Switzerland.

A look at historical interest rate trends

In June 2021, the State Secretariat for Economic Affairs (SECO) published the study “Interest rates in Switzerland 1852-2020”. It examines the development of interest rates, exchange rates and inflation rates from 1852 to 2020.

The real interest rate in Switzerland has been at a low level for years. The study compares the situation in Switzerland with that of its most important trading partners in a long-term perspective since the mid-19th century.

The Swiss nominal interest rate on Swiss franc bonds (maturities of five years or more) developed differently from other countries. In particular, rates in Switzerland were higher until the end of the Second World War, and especially high in the years before the First World War. Over recent decades, nominal rates in Switzerland have fallen steadily, at times even into negative territory after 2015. Following the rate turnaround of 2022 and 2023, a phase of falling policy rates set in again from 2024, down to the zero rate in place since June 2025.

The real (inflation-adjusted) interest rate was stable until 1930 before falling significantly. It then stayed at a low level until 1980, rose again until the mid-1990s without reaching its original level, and finally fell once more, and it has remained at a low level ever since. The trend abroad is similar, albeit with some differences. It is worth noting that the Swiss real interest rate was higher than foreign rates after the change in Swiss monetary policy in 2000.

According to the study, demographic developments affect interest rate trends: a higher share of older people lowers the real interest rate, a higher share of young people raises it.

How do interest rates affect consumers and the financial markets?

The impact of interest rate changes on consumers depends on each person’s situation.

• For homeowners, higher rates increase the monthly burden. This also means that fewer people can afford to buy property. Conversely, low rates ease the cost of financing.
• Saving becomes more attractive when rates rise. Conversely, lower rates can have far-reaching consequences. For example, pension plans based on interest income are harder to make work.
• The use of consumer credit depends on the interest rate level. Rates therefore indirectly shape consumption.

The effects of interest rate changes on the financial markets are also far-reaching.

• Equities tend to be less attractive when rates rise, as the yield on safe bonds becomes more appealing. This can lead to a fall in share prices. When rates fall, equity investments often become more attractive again.
• Interest rate changes have a direct impact on the bond markets. When rates rise, the price of existing bonds falls, because newly issued bonds with a higher rate are more attractive to investors. When rates fall, the price of existing bonds rises.
• Interest rate changes also have a direct impact on the foreign exchange market. When rates rise in a country, that country’s currency tends to become more attractive to investors, which can lead to an appreciation of the exchange rate. When rates fall, the currency can become less attractive.

Reading tip: Portfolio rebalancing, why it is so important

What investors and property buyers should consider

Changes in interest rates affect both financing and saving.

The mortgage market

Fixed-rate mortgages follow capital market rates, not the policy rate directly. In July 2026 they averaged 1.78 percent for five years and 2.05 percent for ten years, well above the SNB policy rate. SARON mortgages follow the money market and therefore the policy rate more closely.

For customers whose fixed-rate period is ending, the choice between a short and a long fixed term depends on their own view of the interest rate environment. Long-term fixed-rate mortgages offer planning certainty, while shorter terms or SARON mortgages keep flexibility open. The trade-off between planning certainty and flexibility is individual.

Investing and saving

Savers receive very different rates depending on the bank. Savings rates follow the ups and downs of the policy rate. In a zero-rate environment, savers should keep an eye on the current inflation rate. This means that the real value of money invested can fall at low savings rates if inflation is higher than the rate earned.

How a portfolio is spread across asset classes such as equities, bonds or ETFs depends, among other things, on risk appetite. The interest rate level is one factor among several.

Reading tip: Investment strategy in focus: the power of the income strategy

Outlook for the interest rate landscape in Switzerland

Interest rates have a significant impact on the strategies of the major players in the financial markets, as interest rates and equities generally tend to move in opposite directions. This is why finance professionals keep a constant eye on interest rate developments.

At its assessment of 24 September 2026, the SNB left the policy rate at 0 percent. Its conditional inflation forecast is an annual average of 0.7 percent for 2026 and 0.8 percent for 2027 and 2028, in the range of price stability. In the short term the forecast is higher than in June because oil products are more expensive than expected; in the medium term the slight rise reflects, among other things, the weakening of the franc. If necessary, the SNB stands ready to be active in the foreign exchange market (source: Swiss National Bank).

What values the key drivers will take in future is open. They include the inflation rate, the general economic situation, currency developments and the monetary policy of central banks. The SNB monitors these developments on an ongoing basis when deciding on the policy rate. Reliable forecasts of future rate levels are not realistically possible. Individual rate forecasts are therefore an uncertain basis for financing and investment decisions.

Frequently asked questions about interest rates in Switzerland

How high is the SNB policy rate right now?

The policy rate of the Swiss National Bank has stood at 0 percent since 20 June 2025. At its assessment of 24 September 2026, the SNB left it unchanged. Its conditional inflation forecast is in the range of price stability: 0.7 percent as an annual average for 2026 and 0.8 percent for 2027 and 2028 (source: Swiss National Bank).

Why are interest rates in Switzerland so low?

Switzerland traditionally has low inflation and a strong franc. Both allow the SNB to maintain a lower interest rate level than, say, the ECB or the US Federal Reserve. In August 2026 inflation stood at 0.8 percent (source: Federal Statistical Office), in the range of price stability, which the SNB puts at 0 to 2 percent.

How much interest is there on a savings account right now?

Averaged across all reporting banks, the interest rate on savings deposits stood at 0.07 percent in July 2026 (source: SNB). The highest offers on 21 September 2026 were 0.6 to 1 percent, mostly with a withdrawal limit or for the first year only (source: getrates.ch). The range is wide, and the conditions differ greatly from bank to bank.

How high are mortgage rates in 2026?

Averaged across new business, a five-year fixed-rate mortgage cost 1.78 percent in July 2026, a ten-year one 2.05 percent and a SARON mortgage with a three-year term 1.10 percent (source: SNB data portal). A mortgage broker quoted conditions from 1.51 percent for five years and from 1.60 percent for ten years, as retrieved on 30 September 2026 (source: MoneyPark). The specific conditions depend on creditworthiness, loan-to-value ratio and provider.

Will interest rates in Switzerland rise again?

This cannot be reliably predicted. The future interest rate level depends on inflation, the economic cycle, the currency and the monetary policy of the SNB. The central bank monitors these factors on an ongoing basis; reliable statements about future rate levels are not possible.