Efficient Methods to Reduce Costs in Switzerland in the Year 2025
Living in Switzerland right now is a financial saver's delight, thanks to low inflation and a host of ways to cut expenses. Here's how you can maximize your savings in this Alpine nation:
Get More Bang for Your Banking Buck
Interest rates in Switzerland have been on a steady downturn, making savings accounts less appealing if your money is just sitting there. According to Moneyland price comparison platform, the annual interest rates of Swiss savings accounts dropped below the 1-percent mark. That's bad news for savers, but the good news is there are ways to find better deals.
Some banks offer higher savings interest rates than others, but you'll need to move your dough to smaller banks to reap the benefits. For instance, the 'Compte Epargne Plus' from Caisse d'Epargne d'Aubonne currently offers a 1 percent yearly interest, while Spar- und Leihkasse Frutigen's 'Sparkonto Plus 12 Monate' boasts a 0.9 percent annual interest rate. If you're willing to compromise slightly, the 'Compte Epargne Top' from Clientis Caisse d'Epargne Courtelary, Anlagesparkonto from Glarner Regionalbank, 'Beteiligungssparkonto' from Bank Wir, and 'the Steinbockkonto Plus' from BSU all offer rates of 0.75 percent.
Capitalize on Low Mortgage Rates
While property prices keep climbing without a sign of slowing down, there's a silver lining—mortgages have become more affordable. In fact, inflation has been slacking off at a faster pace than expected, which is great news for anyone planning to buy a property. The interest rates for fixed-rate mortgages have been dropping, thanks to the Swiss National Bank's continued rate cuts.
Until the end of June 2025, rates for 10-year fixed-rate mortgages are expected to fluctuate between 1.45 to 1.65 percent, and the five-year fixed-rate mortgages are likely to be between 1.30 and 1.45 percent. To stay updated on the best mortgage deals, check out this link.
Shrink Your Tax Bill (Legally)
Here's a fun fact: You can pay less in taxes if you're savvy about deductions. For example, you can deduct the cost of your health, car, and life insurance; medical costs not covered by insurance; out-of-pocket costs towards the deductible and coinsurance payments of mandatory health insurance; the costs of prescription glasses and contact lenses; and dental work. Personal expenses for continuing education in connection with your career can also be tax deductible. Commuting costs to work and back, as well as voluntary, additional contributions to your occupational pension fund can also be deducted. Plus, you can claim a tax exemption for each dependent child.
Save on Health Insurance
When it comes time to renew your obligatory health insurance policy—which happens in November—you can save by switching to a cheaper model. For instance, a health maintenance organization (HMO) model could reduce your premiums by up to 25 percent compared to the conventional insurance. There's a catch, though: you'll be required to consult a specific HMO practice and for specialist referrals.
The family doctor model and the Telmed alternative could save you 20 percent and 15 to 20 percent, respectively, but with limitations (such as having to call a telephone service for a referral and certain exceptions like eye exams and annual gynaecological check-ups). You can also save by increasing your deductible or paying your premiums in one lump sum.
Get a Cheaper Mobile Plan
To save on your mobile bill, you might have to switch carriers or subscription plans. There are over 100 mobile telecom subscriptions and prepaid mobile plans in Switzerland, as well as countless supplemental options and bundles. By switching to a different plan, you could save a pretty penny. Compare plans on platforms such as Moneyland or Comparis to find the latest offers.
- To maximize your savings in Switzerland, consider moving your money to smaller banks like Caisse d'Epargne d'Aubonne or Spar- und Leihkasse Frutigen for higher savings interest rates.
- Take advantage of low mortgage rates in Switzerland by considering a 10-year fixed-rate mortgage, which is expected to have an interest rate between 1.45 to 1.65 percent until the end of June 2025.
- You can legally pay less in taxes by deducting expenses such as health, car, and life insurance, medical costs, prescription glasses and contact lenses, dental work, commuting costs, and voluntary, additional contributions to your occupational pension fund.
- To save on health insurance, consider switching to a cheaper model like a health maintenance organization (HMO) or increasing your deductible or paying your premiums in one lump sum. Don't forget to compare plans on platforms such as Moneyland or Comparis to find the latest offers.
