SNB cuts interest rate to 0%: what it means for you

🏦 What is the SNB and why it matters

First things first: what is the SNB? The Swiss National Bank (SNB) is Switzerland’s central bank, responsible for managing the money supply and price stability. Its main tool is the interest rate, which affects how much it costs banks to borrow or store money. When the SNB cuts interest rate to 0%, as it did today, it encourages lending and economic activity. That move directly affects loans, credit cards, mortgages, and investments.

📉 Lower rates in Switzerland: what changes for loans, debt and investing

On June 19, 2025, the SNB surprised many by cutting its key interest rate to 0.0%. The aim: to fight off deflation risks and support the economy.

But what does it mean for everyday people like me, who have private loans and some credit card debt?

💸 Personal loans: time to renegotiate?

A 0% interest rate from the SNB doesn’t automatically reduce your current loan terms. But it can open the door to renegotiation. If your credit rating is good, you may be able to refinance or apply for a new loan at better rates. Swiss lenders often react quickly to central bank changes.

💳 Credit cards: no effect, unfortunately

Credit card debt is typically not tied to the SNB rate. So, even if the central rate drops, credit card interest remains high. If you're carrying a balance, it's worth exploring a debt consolidation or switching to a personal loan with fixed lower interest.

🏠 Mortgages and property: rates may fall, but prices are high

Lower base rates often lead to more attractive mortgage offers. This is good news for buyers or anyone looking to refinance. But keep in mind: Swiss property prices are already very high, and lower rates may push them even higher.

📈 When saving isn't enough: investment alternatives

With the SNB rate at 0%, traditional savings accounts offer little to no return. That’s why more people are considering dividend ETFs, REITs, or automated investment platforms like VIAC Invest, even for small monthly contributions.

⚠️ Disclaimer
This article does not constitute financial advice. The information shared here reflects personal views for educational purposes only. Always consult a qualified advisor before making investment decisions.

📌 Why the SNB’s rate cut is a big deal

When the SNB cuts interest rate to 0%, it sends a strong signal. It changes how banks, markets—and all of us—behave. It can help reduce loan costs, push investments, and shake up property prices. Taking action now could save you money or help you make better financial choices down the line.