SNB interest rate increase: impact on exemption threshold and tiered remuneration

octobre 7, 2022

The recent move to a positive interest rate environment in Switzerland from a negative interest world puts an end to the concept of exemption threshold from negative interest rates (the threshold below which no negative interest rate was paid).

SNB applies now a tiered remuneration for sight deposits (see links in comments): positive interests will only be paid up to a certain amount (the new positive rate threshold). Above this threshold a rate of 0% is paid (in the future it might be the SNB policy rate minus a discount).

Threshold calculation continues to be based on the minimum reserve requirement for domestic banks. In the negative interest rate threshold calculation, cash holdings were exempted (no negative interest rate paid on cash), whereas it is not deducted from the current (positive) interest rate threshold.