Reducing expenses in Switzerland in 2025: Effective techniques for thriftiness
Saving Money in Switzerland: Your Ultimate Guide
Embrace the economic benefits of living in Switzerland! The current inflation trend shows a steady downward trajectory, which means you've got more purchasing power to splurge on some awesome stuff without breaking the bank. But there's more to saving than just low inflation! Let's explore some smart strategies to help you maximize your savings.
Boost Your Bank Balance
Interest rates in Switzerland have been on a continuous roller coaster ride, dipping steadily over the years. The good news for homebuyers, the bad for bank savers. With savings account interest rates now hanging around the 0.25% mark annually (as of April 2025), it's essential to make informed choices.
Benjamin Manz, Moneyland's leading man, shares his insights: "Savings interest rates will continue to fall even further this year. It's not great news for savers, but some banks still offer better deals than the rest. You might need to switch to smaller banks to enjoy higher rates."
Check out some of the top saver deals offered by various Swiss banks:
- Caisse d'Epargne d'Aubonne's 'Compte Epargne Plus' currently offers a yearly interest rate of 1%.
- Spar- und Leihkasse Frutigen's 'Sparkonto Plus 12 Monate' offers a yearly interest rate of 0.9%.
- Clientis Caisse d'Epargne Courtelary's 'Compte Epargne Top' and Glarner Regionalbank's 'Anlagesparkonto' both provide a yearly interest rate of 0.8%.
- Bank Wir and BSU's 'Beteiligungssparkonto' offer a yearly interest rate of 0.75%.
Although these rates are not exactly earth-shattering, they're significantly higher than what some other banks offer.
Get Mortgage-Savvy
If you're in the market for a new property, brace yourself - property prices keep climbing and show no signs of falling anytime soon (if ever). But there's a silver lining - mortgages are becoming more affordable!
The Swiss National Bank's rate cuts have made fixed-rate mortgages more affordable than before. Dirk Renkert from Comparis consumer platform explains: "We can expect to see more mortgage rate drops as the SNB continues its rate cuts."
Renkert advises mortgage shoppers to keep an eye on interest rate forecasts. "Right now, rates for 10-year fixed-rate mortgages are expected to fluctuate in the range of 1.45 to 1.65% until 2025." Meanwhile, 5-year fixed-rate mortgages could be between 1.30 and 1.45%.
Want to stay updated on the best mortgage deals? Check them out here.
Maximize Your Tax Savings
Did you know you could legally reduce your tax bill by being strategic with your declarations? Here are a few deductions to consider:
- Save on health, car, and life insurance.
- Deduct any uninsured medical expenses, including out-of-pocket costs, prescription glasses, contact lenses, and dental work.
- Claim deductions for career-related continuing education expenses.
- Save on commuting costs.
- Deduct voluntary, additional contributions to your occupational pension fund.
- Claim tax exemptions for dependent children.
Reduce Your Health Insurance Costs
Time to renew your obligatory health insurance? Switching to a cheaper plan could save you up to 25%!
Here are some options:
- Health maintenance organization (HMO)
- Family doctor model
- Telmed alternative
Tips for a Leaner Wallet
Don't forget these additional ways to save money:
- Increase your deductible for a potential savings of several hundred francs annually.
- Pay your premiums upfront and receive a 2% reduction in most cases.
- Consider switching to a cheaper mobile plan - there are over 100 to choose from in Switzerland!
- Despite the low savings account interest rates in Switzerland, some banks still offer better deals, such as Caisse d'Epargne d'Aubonne's 'Compte Epargne Plus' with a yearly interest rate of 1%.
- Maximizing personal-finance savings can also be achieved by claiming tax deductions on health, car, and life insurance premiums, uninsured medical expenses, career-related continuing education costs, commuting costs, and voluntary, additional contributions to your occupational pension fund.
- To lower health insurance costs, consider switching to a cheaper plan like a health maintenance organization (HMO), family doctor model, or Telmed alternative, which could save you up to 25%.
- Further savings can be achieved by increasing your deductible, paying premiums upfront, and switching to a cheaper mobile plan in Switzerland.
