The Migros Bank, a Swiss institution with a large customer base, is making efforts to attract customers and make saving more attractive. Starting from January 1, 2024, the bank will increase the interest rate on its Bonus Savings Account to 1.4 percent. Additionally, the interest rates on Youth Savings Accounts and the Free25 Personal Account will also be raised. This move is aimed at encouraging saving, as stated in a recent announcement by the bank, which is a subsidiary of the retail giant Migros.
This announcement comes just one day after the Zürcher Kantonalbank (ZKB), the largest state bank in Switzerland, made headlines by announcing the elimination of annual fees for existing customers starting from the New Year. This move by the ZKB was seen as a clear signal that a price war in Swiss retail banking has begun, according to analysis by finews.ch.
While savings interest rates in Switzerland have lagged behind the rise in interest rates, resulting in increased profits for banks but also attracting criticism, the competition for savings deposits seems to be intensifying in anticipation of 2024. The ZKB’s move has set a clear precedent in this regard.
Meanwhile, capital market interest rates are already declining, and the Swiss National Bank decided to keep its benchmark interest rate at 1.75 percent in December. However, Swiss National Bank President Thomas Jordan recently urged Swiss savers to push for higher interest rates.
Given these developments, it is expected that changes in savings rates will continue, with implications for banks. Manuel Kunzelmann, CEO of Migros Bank, recently stated that the bank is currently well-positioned in the interest rate business due to its high customer deposit ratio. However, he believes that the interest margin for all banks will narrow in the future.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Europe |
| Countries | 🇨🇭 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Manuel Kunzelmann, Thomas Jordan |
| Companies | Migros Bank, finews.ch, Zürcher Kantonalbank, Schweizerische Nationalbank |
| Currencies | None |
| Securities | None |
