You are here:
- Home Switzerland
- >Corporates & Institutions
- >Corporates
- >Liquidity and Investments
- >Optimizing Returns in the Short Term
Money-Market Transactions
Here you will find a brief description of the most common products that protect against interest rate risks.
Time Deposit
Objective
To facilitate cash management, as a short to medium-term investment for liquidity.
Brief Description
A time deposit is an investment at a fixed rate of interest for a certain term of between one month and a year (overnight deposits are also time deposits). Time deposits are available with terms of up to 29 days for CHF 500,000 and terms of over 30 days for CHF 100,000, or the equivalent in foreign currency. 35% withholding tax is deducted from the interest income. Investors who expect interest rates to rise should choose short-term investments. This way, capital can be reinvested at higher rates of interest. If interest rates are expected to fall, the capital should be invested for as long as possible, so as to profit from higher interest rates throughout the term of the investment.
Profit Potential
None
Risk
Credit risk (credit rating of bank)
Exchange rate risk (in the case of foreign currency investments)
Personal Consultation
We're always here for you, and that's on a personal level too. You can reach us on freephone 0800 88 88 71 or via the contact form.
Secondary Content
Contact
Toplinks
Market Info
Online and Mobile Services
