You’ve got CHF 60,000 sitting in your UBS or Credit Suisse current account. You need it in January 2027, two years away, for a house down payment, a tuition payment, or maybe a car you’ve ordered that’s stuck in production hell. Whatever the reason, you think you’re being responsible. You’re not touching the money. You’re keeping it “safe.”
Here’s the problem: every month, that money loses value. Swiss inflation hovers around 2%, and your current account pays exactly 0%. By 2027, your CHF 60,000 will have the purchasing power of CHF 57,600. You just lost CHF 1,200 per year by doing nothing.
This is the Swiss savings trap: the myth that parking money in a “safe” account is risk-free. It’s not. It’s guaranteed loss. The good news? You don’t have to gamble on crypto or lock it away for a decade. Switzerland offers specific short-term vehicles that beat inflation while keeping your money accessible and protected by Einlagensicherung (deposit insurance). Let’s dissect what actually works.
The Reddit Dilemma That Exposes Swiss Banking Reality
A recent discussion in the SwissPersonalFinance community highlighted this exact scenario. Someone needed a solution for CHF 60k with a two-year horizon. The responses revealed a harsh truth: Swiss short-term rates are brutal. One commenter noted that even for a 2027 maturity, you’re looking at around 0.25% annually. That’s CHF 150 per year, hardly compensation for locking up your cash.
The thread also exposed a common mistake: reaching for corporate bond ETFs. While tempting, these carry duration risk. The average CHF corporate bond ETF has a duration of 4.5 years. If interest rates rise, your ETF could drop 4-5% in value, wiping out years of interest payments and threatening your principal. For money you need in 24 months, this is financial Russian roulette.
Festgeld: The Swiss Fixed-Term Deposit Reality Check
Festgeld (fixed-term deposit) is Switzerland’s answer to fixed deposits. You lock your money for a predetermined period, anywhere from one month to three years, and receive a guaranteed interest rate. In May 2025, rates ranged from 0.1% to 1.1% depending on term length.
The catch? Most Swiss banks require minimum deposits of CHF 5,000 to CHF 10,000. And if you break the term early, you face penalty fees that can erase your entire interest gain.
Who offers decent Festgeld?
– Swissquote provides flexible terms and competitive rates for digital-savvy customers
– Kontomat offers 0.30% with a three-month notice period, upgradable to 0.40% with fixed tranches
– Traditional cantonal banks sometimes match online rates if you negotiate in person
But here’s the uncomfortable truth: even at 1.1%, you’re barely breaking even with inflation. Festgeld makes sense only if you absolutely cannot tolerate any volatility and need ironclad guarantees. For most people, it’s a psychological comfort blanket, not an optimal financial strategy.
High-Yield Sparkonto: The Digital Bank Disruption
Your best bet for short-term Swiss cash is a high-yield Sparkonto (savings account) from a digital bank. Unlike traditional banks that pay 0.0% because they can, these newcomers actually compete for your money.
Current leaders (as of early 2026):
– Zak (Bank Cler): 0.50% on balances up to CHF 100,000. No fees. Full Einlagensicherung. This is currently the highest straightforward savings rate from a Swiss-licensed bank.
– Willbe (Liechtensteinische Landesbank): Offers 0.25% on CHF balances up to CHF 50,000, but shines with 2.15% on EUR and 3.75% on USD. If you’re comfortable holding foreign currency, this is a clever workaround, though you take forex risk.
– Yuh (PostFinance/Swissquote): 0.10% if you specifically park it in their “Sparen” section. Not impressive, but better than zero.
– Neon: 0.00%. They don’t even pretend to compete on savings rates, focusing instead on user experience.
The math: Moving your CHF 60,000 from a 0% current account to Zak’s 0.50% Sparkonto earns you CHF 300 per year. Over two years, that’s CHF 600, not life-changing, but it covers your mobile phone bills and respects the fact that your money should work for you.
The Money Market Fund Alternative
If you can stomach minimal risk and want potentially higher returns, consider a CHF-denominated Geldmarktfonds (money market fund). These invest in short-term government bonds and bank deposits, aiming to preserve capital while offering slightly better yields.
Key advantage: Unlike Festgeld, you can access your money within a few business days. No lock-in period.
Key disadvantage: They’re not covered by Einlagensicherung. While extremely safe, they’re technically investment products, not bank deposits. If the fund manager fails, you could lose principal, though this has never happened with reputable Swiss providers.
What to expect: Returns of 0.5% to 1.0% annually, depending on the fund. Not spectacular, but liquid and relatively secure.
Why Corporate Bond ETFs Are a Trap for Short-Term Goals
The Reddit thread mentioned a Swiss corporate bond ETF (CHCORP) as a possible solution. This is dangerous advice for a two-year horizon.
Bond ETFs don’t mature. They trade on the secondary market, meaning their price fluctuates with interest rates and credit spreads. If rates rise, a real possibility given the Swiss National Bank’s unpredictable policy, your ETF drops in value. With a duration of 4.5 years, a 1% rate increase could slash your principal by 4.5%.
You might think, “I’ll just hold until I need the money.” But markets don’t care about your timeline. If you need CHF 60,000 in January 2027 and the market is down 5% in December 2026, you’re forced to sell at a loss. That’s not investing, that’s gambling with your timeline.
The Wealth Tax Factor Nobody Talks About
Here’s a uniquely Swiss twist: wealth tax. Most cantons tax your worldwide net worth annually, typically around 0.3% to 1.0% depending on your location and wealth level. That CHF 60,000 in your current account? You’re paying tax on it while it earns nothing.
By moving to a yield-bearing account, you generate income that partially offsets this wealth tax burden. It’s not just about earning interest, it’s about reducing the effective cost of holding cash in Switzerland. This is particularly relevant for expats and international residents who are often caught off guard by Switzerland’s wealth taxation.
When evaluating options, calculate your real return: interest rate minus inflation minus wealth tax. Suddenly, even Zak’s 0.50% looks less like a gift and more like damage control.
Decision Matrix: Where to Park Your CHF 60,000
If you need absolute certainty and can’t risk a single franc:
– Zak Sparkonto at 0.50%. Protected, liquid, no lock-in.
If you can handle slight complexity for better returns:
– Willbe Tagesgeldkonto in USD at 3.75%, but only if you understand currency risk and have future USD expenses.
If you want the Festgeld guarantee but need flexibility:
– Kontomat with 3-month notice period. You’re not fully locked in, and you get a slight rate bump.
If you’re willing to accept minimal investment risk:
– CHF money market fund from providers like UBS or Credit Suisse. Aim for 0.7% to 1.0% returns, but verify the fund’s expense ratio, some charge 0.5% or more, eating your gains.
What about the big traditional banks? This is where the exodus becomes understandable. Choosing banks for safe, short-term deposits in Switzerland has become a matter of abandoning the old guard. UBS and Credit Suisse pay essentially zero on savings because they don’t need your deposit, they have institutional funding. Their business model isn’t built for retail savers anymore.
The Student Perspective: Small Amounts Matter Too
You might think this only matters for large sums. It doesn’t. A 20-year-old student in Geneva saving CHF 100 monthly for a health insurance premium jump at age 25 faces the same math. Short-term savings goals and investment strategies for near-term liabilities apply whether you have CHF 600 or CHF 60,000. The percentage loss to inflation is identical.
For smaller amounts, digital banks become even more attractive because they have no minimum balance requirements. You can start earning that 0.50% on your first franc deposited.
Action Plan: Move Your Money in 48 Hours
- Today: Open a Zak account via the Bank Cler app. It takes 10 minutes, requires video identification, and you’ll get an IBAN immediately.
- Tomorrow: Transfer CHF 60,000 from your current account. Use a standard CHF transfer, free and arrives same day.
- Set a calendar reminder: For December 2026, check if rates have changed. If Zak drops below 0.30%, consider switching.
- Optional: If you’re comfortable with it, park CHF 10,000 in a money market fund for slightly better returns while keeping the bulk in the protected Sparkonto.
Total time investment: 30 minutes. Annual financial benefit: CHF 300. Two-year benefit: CHF 600. Risk level: zero.
The Bottom Line
Swiss banks profit from your inertia. They rely on you believing that zero interest is the price of safety. It isn’t. The Swiss financial system offers better options, they’re just not advertised by the institutions that benefit from your complacency.
Your CHF 60,000 deserves better than a current account. It deserves better than a Festgeld that locks your money for a pittance. In 2026, the optimal short-term strategy is a high-yield Sparkonto from a digital bank combined with strategic use of money market funds for the portion you can afford mild risk on.
Stop letting your bank use your money for free. Start making your cash work for you, even in Switzerland’s low-rate environment. Your future self, facing that January 2027 payment, will thank you for the extra CHF 600.
And remember: in Switzerland, the biggest risk isn’t market volatility, it’s doing nothing while inflation and wealth tax silently erode your wealth.
