Swiss savers underestimate the effect of compound interest

Two out of three Swiss people do not know the rate of interest being earned on their savings account. This rate of interest is of crucial importance, especially in the case of private retirement provision under the third pillar where savings are accumulated over an extended period of time. A pension saver who, for example, invests their Pillar 3a contributions over 30 years at the current interest rate being paid on the CIC Savings 3a retirement account (2.15%) will receive around CHF 23,000 in additional interest compared to the current Swiss average (1.64%*) at the end of the savings period - a sizeable difference..

*Source: VZ Vermögenszentrum, reference date of 1 December 2012