Interest rates are back to zero. How can I invest my money in Switzerland?

Sometimes it is important to talk about money and ask yourself: «How should I invest my money?» For example, when you have accumulated a considerable amount in your checking or savings account. This is more important than ever in the current zero interest rate environment.

Regardless of whether you are relaxed about your budget or put every penny aside, at some point the question of investing money will arise: when you start your career, when you inherit money, or perhaps only when you withdraw capital from your pension fund.

The following overview shows the options available – and their advantages and disadvantages.

The bank account

Everyone has one and knows how to use it. In 2026, there is no longer any real interest rate, not even a nominal one The bank account is primarily a place to store money. With «security», immediate access, and ease of use, the bank promises the perfect solution for anyone who doesn't want to deal with their finances too intensively. You trade liquidity for returns.

Deposits are exposed to the risk of bank failure. The first 100'000 francs in private banks is protected by the esisuisse deposit guarantee scheme. In many cantonal banks, the state even has unlimited liability for the bank's liabilities. This is not the case in the cantons of Bern, Vaud, and Geneva.

Since interest rates have fallen back to zero, savers have been left behind. In addition, the account maintenance fees introduced during the last zero interest rate phase have been stubbornly maintained.

One exception is the third pillar account. Here, interest rates are slightly higher and, as an incentive, the amounts paid in can be deducted from taxable income. Employees who are tied to a pension fund can currently pay in a maximum of 7'258 francs per year. For self-employed people without a pension fund, the amount is higher. However, the high level of security and tax relief come at the price of restrictions on availability: pension funds can only be accessed upon retirement. Exceptions are emigration, buying a house, or becoming self-employed.

Below are the average interest rates by account type, as evaluated by the comparison portal Moneyland at the beginning of 2026:

• Checking account: 0%
• Savings account: 0.11%
• 3a account: 0.27%

Medium term notes

Until the 1990s, these were one of the most popular investment instruments in Switzerland. Cash bonds have a fixed interest rate over a fixed period of two to ten years (for shorter terms, banks use the term «fixed-term deposit»). In both cases, the capital is tied up for the duration of the term.

Medium term notes were comparatively attractive at the time, but less so in today's interest rate environment. They are not tradable. Penalty interest is payable in the event of early repayment, and there is a risk of default if the bank becomes insolvent. It is therefore worth considering alternatives here too.

Trading on the stock market

Do you believe you have a good instinct for certain stocks and the right timing? Or do you believe you can identify trends that the masses do not see? Self-trading on the stock market is appealing and has become extremely accessible thanks to apps. Many financial institutions and neo-banks offer online trading, where you can trade, check prices, and consume financial news. Of course, there are advantages and disadvantages here too:

• Time-consuming: The work is up to you. You have to diversify and be your own risk manager. And you have to keep your portfolio on track at all times. That costs time and money.
• Risky: Many investors overestimate themselves, buy or sell at unfavorable times, trade too frequently, or make other mistakes.
• Liquidity: If you need money urgently, you are in control and can quickly sell your securities. However, selling loss-making positions takes effort.
• Minimum deposit: Online trading is possible with small amounts, although this makes limited sense.
• Emotionally stressful: The ability to trade immediately and the daily flood of news create an incentive to intervene frequently. Your own instincts and emotions get in the way, with greed and fear playing a role.

Wealth management

The flagship discipline of private banking in Switzerland is classic wealth management. If you want your money to be managed professionally, you may find the right partner here after a few preparatory and advisory meetings. Once the contract is signed and sealed, you as a customer no longer need to invest much time.

However, the barriers to entry are high: many private banks only accept clients with several hundred thousand francs or more. And the average cost of an asset management mandate is a hefty 1.3 percent per year, as calculated by Moneyland. In addition, there are other, undisclosed fees that significantly reduce long-term returns.

Another disadvantage is the lack of liquidity: depending on the contract entered into, it can take weeks or months before you have access to your money. And, of course, there are also the usual market risks, because even wealth managers are only human. Added to this are self-serving funds: there is an incentive for the bank or wealth manager to place their own products in the portfolio in order to collect commissions on two levels. It is also not uncommon for distribution partnerships with third parties to exist, which earns the bank commissions but reduces the return on investment. Read more about this in our blog on kickbacks.

Active management statistically leads to lower returns. Find out how Swiss active funds perform in the following video:

Online wealth management

Digital wealth managers, often referred to as «robo-advisors» in the early years, are providers such as True Wealth. There, a rule-based system makes the investment decisions. Investments are passive and index-oriented in the sense of maximum market participation.

Unlike a savings plan, the online wealth manager also takes care of portfolio management, i.e., portfolio construction and ongoing rebalancing. It invests the money in a carefully selected range of ETFs (exchange-traded funds). This covers the various asset classes and markets, and clients can make adjustments at any time. The multi-asset portfolio is tailored precisely to the client's own risk tolerance. Currency risks can be partially hedged. You can find a more detailed comparison in our blog «ETF savings plan or digital wealth manager: which one is better?».

The custodian bank holds the securities on behalf of the client. They are special assets and are not included in the bankruptcy estate in the event of the collapse of the bank or wealth manager.

There is also an entry barrier here. At True Wealth, the minimum investment amount for discretionary assets is 8'500 francs. In return, clients benefit from low overall costs, professional risk management, and high liquidity. In addition, there are people behind the investment solution who are easily accessible if you have any questions.

True Wealth customers can view their portfolio at any time and have access to their money. Pillar 3a and ETF child portfolios are also seamlessly integrated, with a minimum deposit of 1'000 francs.

Conclusion

If you want to avoid effort and price risks, a bank account is a suitable place to park your money. It scores highly in terms of liquidity. However, customers must accept that their assets will lose purchasing power.

Traditional wealth management is unattractive or inaccessible to most investors due to its costs and the investment amount required. In addition, active management rarely delivers on their promised returns after costs.

Online wealth managers such as True Wealth offer an alternative: low costs, a long-term investment approach, little effort, free e-tax statements, optional withdrawal plans, and maximum transparency. For investors who can bear a certain amount of market risk and want an individual investment strategy, this is a very attractive and convenient solution. And it's also good for your own well-being.