Both private and business customers have specific financial goals and requirements. While private customers often want to fulfil ambitions such as buying a home or car of their own, business customers tend to be all about efficient liquidity management.

Fixed-term deposits are an appealing option for private and business customers alike who are looking for security and predictability in an investment. Fixed-term deposits allow you to invest your money in a targeted manner. You decide the investment amount and the term of your investment, depending on the bank. Your capital is invested at a fixed interest rate that is determined individually based on the current market interest rate. This allows investors to invest excess capital in a predictable way and to benefit from stable conditions in the process.

What exactly is a fixed-term deposit?

Fixed-term deposits are a type of investment where a certain amount of money is invested for a specific period of time at a fixed interest rate. The interest rate remains consistent throughout the investment term, which provides planning security. The term varies between one and twelve months, and the capital is bound up during this time. Generally speaking, the higher the investment amount, the shorter the minimum term. The exact conditions for a fixed-term deposit vary from provider to provider. Fixed-term deposits can also be invested in foreign currency, which may result in higher interest. However, it’s important to take foreign currency risk into account seeing as exchange rate fluctuations can have an impact on the value of the investment. 

Fixed-term deposits for private customers – a reliable investment type for retirement provision

Fixed-term deposits can be a valuable supplement to your retirement provision, especially if you are looking for security and predictability. They offer steady, guaranteed interest over fixed terms, which helps you to calculate your returns in a reliable way. While other investment types such as shares or funds may be subject to market fluctuations, the interest rate remains constant with fixed-term deposits. This is why a fixed-term deposit is an excellent way of devoting a low-risk part of your diversified investment portfolio to retirement provision. 

Fixed-term deposits for business customers – invest liquidity securely and profitably

Fixed-term deposits offer business customers an excellent way of investing excess liquidity in a secure, predictable way. Companies can use fixed interest rates and terms to calculate their returns accurately and to make their financial plans secure. The capital remains untouched throughout the term and is protected against market fluctuations, which makes it a reliable reserve for future investments or unexpected expenses. Moreover, fixed-term deposits frequently offer higher interest compared with conventional business accounts, which in turn means better returns. Companies can choose between different terms, depending on their requirements and their liquidity planning. Large amounts, too, can be invested flexibly and at attractive conditions.

Depositor protection and market conditions in Switzerland

Statutory depositor protection applies to all banks operating in Switzerland that are subject to supervision by the Swiss Financial Market Supervisory Authority (FINMA). Deposits, including fixed-term deposits, are insured for up to 100,000 francs per customer under the statutory depositor protection scheme.

Please bear in mind that the availability of fixed-term deposits depends on current market conditions. Banks only offer this investment product if current conditions and the financial market allow it. Find out more from your bank about current offers and conditions, or speak to your advisor for more information.

How can I invest in a fixed-term deposit?

You can make a money market investment with a fixed maturity date, amount and interest rate either over the phone or in a consultation. Generally speaking, these investments can be made in various currencies. Find out more about what your bank has to offer or ask your bank for advice.