Fixed-Term Deposits in Switzerland 2026: Rates and Medium-Term Notes
Want to lock away money for a few years and earn more than on a savings account? In Switzerland you have two options: a fixed-term deposit (Festgeld, also called Termingeld) and medium-term notes (Kassenobligationen). With both, the rate is fixed for the whole term, and you can’t get at your money before the end, or only against a penalty.
The catch: at the banks that publish their rates, short fixed-term deposits of up to twelve months currently pay less than a good savings account and often require CHF 100,000. Higher rates only start at two-year terms, and in our comparison medium-term notes pay the most. We’ll look at the rates of the main banks, the rules for early withdrawal, deposit protection and withholding tax, and work out whether locking up your money beats a savings account.
In short:
- Money for two to five years: Cembra medium-term notes at 1.00% for two years and 1.25% for five, from CHF 20,000 and with no custody fee.
- Smaller amount: Valiant, Bank Cler, BEKB and Glarner Kantonalbank issue medium-term notes from CHF 1,000.
- Fixed-term deposit up to twelve months: not worth it at the moment. A savings account like Cembra Sparkonto Plus pays more at 0.60%, and part of it stays available.
- Emergency fund: belongs in a savings account, not a fixed-term deposit.
Overview: fixed-term deposit rates and medium-term notes compared
All rates are for Swiss francs and per year. Banks adjust them all the time. What counts is the rate on the day your money is invested. After that it stays fixed for the whole term.
Medium-term notes: rates by term
| Bank | 2 years | 3 years | 5 years | 8 years | Minimum | Custody fee |
|---|---|---|---|---|---|---|
| Cembra | 1.00% | 1.10% | 1.25% | 1.25% | CHF 20,000 | None, Sparkonto Flex required |
| Valiant | 0.60% | 1.00% | 1.30% | 1.00% | CHF 1,000 | 0.09% a year plus VAT |
| Bank Cler | 0.60% | 0.70% | 0.90% | 1.00% | CHF 1,000 | 0.075% a year plus VAT |
| Glarner Kantonalbank | 0.70% | 0.75% | 0.85% | 0.95% | CHF 1,000 | None, held as an account |
| BEKB | 0.60% | 0.70% | 0.80% | 0.85% | CHF 1,000 | None |
| Luzerner Kantonalbank | 0.50% | 0.65% | 0.80% | 0.90% | CHF 1,000 | 0.10% a year plus VAT |
| Zürcher Kantonalbank | 0.50% | 0.65% | 0.80% | 0.85% | CHF 5,000 | 0.10% a year, at least CHF 1 a month, plus VAT |
| Migros Bank | 0.50% | 0.60% | 0.70% | 0.80% | CHF 5,000 | 0.05% a year plus VAT |
For large amounts, from CHF 500,000 or CHF 1 million depending on the bank, you get an individual offer.
Fixed-term deposits: rates by term
| Bank | 1 year | 2 years | 3 years | 5 years | Minimum |
|---|---|---|---|---|---|
| Basellandschaftliche Kantonalbank (term deposit) | Not offered | 0.64% | 0.77% | 0.88% | CHF 1,000 |
| St. Galler Kantonalbank (long-term deposit) | Not offered | 0.55% | 0.65% | 0.75% | CHF 1,000 |
| Aargauische Kantonalbank (term deposit) | Not offered | 0.30% | 0.40% | 0.65% | CHF 1,000 |
| CA next bank (fixed-term deposit) | 0.36% | 0.54% | 0.64% | Not offered | CHF 50,000, with a banking package |
| Swissquote (fixed-term deposit) | Below 0.30% | Not offered | Not offered | Not offered | CHF 25,000 |
At most large banks, a fixed-term deposit is a product for larger amounts with terms of one to twelve months, and most only quote the rate on request. ZKB, Migros Bank, PostFinance, St. Galler and Luzerner Kantonalbank start at CHF 100,000. UBS accepts CHF 25,000, but only for new money from another bank. Bank Cler asks for CHF 50,000 for three to twelve months.
Fixed-term deposit, term deposit or medium-term note: the difference
All three mean lending money to a bank for a set period at a fixed rate. The differences are in the details:
- A fixed-term deposit (Festgeld) is money held in an account. In Switzerland the term usually means a short term of one to twelve months. You get the interest and capital at the end.
- A term deposit (Termingeld) is just another word for a fixed-term deposit at many banks. Some banks use it for their long deposits of two to ten years, for example St. Galler and Basellandschaftliche Kantonalbank. Those pay interest every year.
- A medium-term note (Kassenobligation) is a bond issued by the bank, so it’s a security. Terms are usually two to ten years, and interest is paid annually. It usually sits in a securities account. Glarner Kantonalbank and PostFinance hold it as an account, so you don’t need a custody account. You can’t trade medium-term notes on the stock exchange.
| Savings account | Fixed-term deposit | Medium-term note | |
|---|---|---|---|
| Rate | Variable, the bank can change it at any time | Fixed for the term | Fixed for the term |
| Term | None | Usually 1–12 months, long term deposits 2–10 years | Usually 2–10 years |
| Minimum | Usually none | Often CHF 100,000, long term deposits from CHF 1,000 | Usually CHF 1,000–5,000 |
| Withdrawal before maturity | Free up to the withdrawal limit | Usually not possible, or against a penalty | Usually not possible, or against a penalty |
| Deposit protection | Yes | Yes | Only at the issuing bank, in your name |
Cembra: the highest rate for medium-term notes
Cembra Money Bank pays 1.00% on medium-term notes for two years, 1.10% for three, 1.15% for four and 1.25% for five to ten years. That’s the highest rate in this comparison for two, three and eight years.
Private individuals aged 18 or over who live in Switzerland can subscribe. You need a Sparkonto Flex savings account, which is free to open and keep. Cembra pays the interest and, at the end, the capital into it. The minimum is CHF 20,000, then in steps of CHF 1,000 up to CHF 1 million per subscription.
Disadvantages of Cembra
Nothing below CHF 20,000. And the money really is locked up: early repayment is only possible in justified hardship cases and costs 2% of the nominal value, at least CHF 250 per note, plus any refinancing costs.
Valiant: 1.30% for five years, but with a custody fee
Valiant’s rate curve is unusual: 1.00% for three years and 1.30% for five, but only 0.75% for four. The five-year rate is the highest in the comparison. Medium-term notes start at CHF 1,000, interest is paid annually, and subscription and repayment are free.
Disadvantages of Valiant
The notes sit in a custody account, and Valiant charges 0.09% a year plus VAT for it. On CHF 50,000 that’s about CHF 49 a year. That leaves just over 1.20% of the 1.30% five-year rate, slightly less than at Cembra. For two years, Valiant pays a much lower 0.60%.
Cantonal banks, Bank Cler and Migros Bank
The other banks are close together: between 0.50% and 0.70% for two years and between 0.70% and 0.90% for five. If you already bank there, it’s convenient. Watch the custody fee, though: BEKB and Glarner Kantonalbank don’t charge for holding the notes, while ZKB, Luzerner Kantonalbank, Migros Bank and Bank Cler do.
If you’d rather have an account than a bond, Basellandschaftliche Kantonalbank’s long-term deposit pays similar rates from CHF 1,000: 0.64% for two, 0.77% for three and 0.88% for five years (BLKB rates). BLKB pays the same rates on its medium-term notes.
At Raiffeisen, each local bank sets its own terms. Raiffeisenbank Luzern, for example, offers a term deposit of two to ten years from CHF 5,000 with annual interest. You can’t cancel it before maturity.
Is a fixed-term deposit worth it compared with a savings account?
Not for terms up to twelve months. CA next bank pays 0.36% for one year from CHF 50,000, Swissquote less than 0.30% from CHF 25,000. Cembra Sparkonto Plus pays 0.60% with no minimum, and you can withdraw CHF 20,000 every 180 days without notice. Bank Cler’s Sparkonto Plus pays 0.70% on new money in the first year. More in the savings account comparison.
From two years on, it’s a different picture. A Cembra medium-term note pays 1.25% for five years, 0.65 percentage points more than Sparkonto Plus. In return you give up two things:
- Access. If you need the money earlier, getting out can cost more than the extra interest you earned, if it’s possible at all.
- The chance of rising rates. The Swiss National Bank’s policy rate is 0%. If savings rates fall, the fixed rate wins. If they rise, you’re stuck with your lower rate.
Nobody can predict the second point. The first is a matter of planning: only lock up money you’re sure you won’t need before the end of the term.
Example: CHF 50,000 for five years
Assumptions:
- You invest CHF 50,000 for five years and withdraw nothing in that time.
- The savings account rate stays the same for five years. That’s an assumption, not a guarantee.
- Gross interest without compounding, before tax.
| Investment | Rate | Per year | After five years |
|---|---|---|---|
| Cembra medium-term note, 5 years | 1.25% | CHF 625 | CHF 3,125 |
| Valiant medium-term note, 5 years, after custody fee | 1.30% minus about 0.10% | CHF 601 | CHF 3,007 |
| BLKB term deposit, 5 years | 0.88% | CHF 440 | CHF 2,200 |
| Cembra Sparkonto Plus | 0.60% | CHF 300 | CHF 1,500 |
With the Cembra medium-term note you earn CHF 325 a year more than on the savings account in this example, CHF 1,625 over five years. If you had to get out after one year, Cembra would charge at least 2%, so CHF 1,000 plus refinancing costs. That’s more than three years of extra interest.
In my view, the extra rate is worth it for money with a fixed goal two to five years away, such as a car, further education or part of the down payment for a home. For anything you might need sooner, it isn’t.
Can I withdraw a fixed-term deposit or medium-term note early?
Don’t count on it. The banks’ rules:
- Not possible: fixed-term deposits at ZKB, Bank Cler, St. Galler Kantonalbank, Valiant and PostFinance. Raiffeisenbank Luzern’s term deposit can’t be cancelled early either.
- Only exceptionally and at a cost: fixed-term deposits at Migros Bank and UBS, medium-term notes at Cembra and Migros Bank.
- With a set penalty: Swissquote charges 2% of the amount plus financing costs until maturity on fixed-term deposits, BEKB 2% of the capital. Luzerner Kantonalbank allows early repayment of medium-term notes for a fee.
Because medium-term notes aren’t traded on the stock exchange, you can’t simply sell them either.
Laddering: spreading money across several terms
If you don’t know exactly when you’ll need the money, you can split it up, for example a third each into two, three and five years. That way part of it becomes free at regular intervals, and you don’t lock everything in at today’s rate. Since most banks issue medium-term notes from CHF 1,000, this works with smaller amounts too. At Cembra you need CHF 20,000 per term.
Is a fixed-term deposit safe? Deposit protection up to CHF 100,000
Fixed-term and term deposits at a Swiss bank are covered by the esisuisse deposit protection scheme, just like a savings account. The limit is CHF 100,000 per client and bank. All accounts, fixed-term deposits and covered medium-term notes at the same bank are added together.
Medium-term notes come with a condition: according to esisuisse, they’re only covered if they’re held in your name at the bank that issued them. If you buy another bank’s medium-term note and keep it in your custody account at your own bank, this protection doesn’t apply.
If you invest more than CHF 100,000, it’s best to spread the amount across several banks. At cantonal banks with a state guarantee, such as St. Galler or Aargauische Kantonalbank, the canton is also liable.
Withholding tax and tax on interest
Banks deduct 35% withholding tax (Verrechnungssteuer) from interest. Customer deposits have an exemption: if the interest for a calendar year doesn’t exceed CHF 200, no withholding tax is due. This also covers fixed-term deposits with a term of up to one year, as long as interest is credited only once a year and the deposit isn’t rolled over.
The exemption doesn’t apply to medium-term notes or multi-year term deposits. There, the bank deducts 35% from every interest payment, however small. In the example above, Cembra withholds CHF 218.75 of the CHF 625 each year.
You don’t lose that money. You get the withholding tax back if you declare the capital and gross interest in the securities list of your tax return. I explain how in reclaiming withholding tax. Interest is income and taxed normally, and the money you invest counts towards your wealth.
Conclusion: medium-term notes instead of short fixed-term deposits
A fixed-term deposit sounds like a higher rate, but for up to twelve months that isn’t true at the moment. If you want to lock in a rate, look at terms of two years or more, and there medium-term notes pay the most.
- You have a set amount you’re sure you won’t need for two to five years: Cembra medium-term note, 1.00% to 1.25%, from CHF 20,000 and with no fees.
- You want to invest less than CHF 20,000: medium-term note from CHF 1,000 at Valiant, Bank Cler, BEKB or Glarner Kantonalbank. BEKB and Glarner Kantonalbank charge no custody fee.
- You’re looking for a place for your emergency fund: a savings account. A higher rate isn’t worth being unable to reach your money when you need it.
- You’re investing more than CHF 100,000: spread it across several banks because of deposit protection.
- You won’t need the money for ten years or more: a fixed rate of around 1% is little for that. How to build wealth over the long term is in my path to wealth.