In Switzerland, negative rates did not disappear with a policy rate of 0%. According to the Swiss National Bank (SNB), a negative rate then applies to the portion of banks' sight deposits that exceeds a threshold. That was the case on 21 October 2026, and SARON stood at −0.05% the day before.
This mechanism stems from the SNB policy rate, the tool through which the National Bank steers the level of interest rates in Switzerland. This page of our SNB and interest rates guide answers a single question: how does an SNB negative rate work, and what is known about its effects.
It confines itself to SNB pages and 2clics articles. The SNB archives its monetary policy decisions year by year, from 2000 to 2026, including the period from 2015 to 2022. The pages reviewed for this article, however, do not reproduce the content of these annual decisions.
What is an SNB negative rate?
An SNB negative rate is a rate applied to the sight deposits in francs that banks hold with it. Other financial market participants are affected too. The SNB classes this rate among its monetary policy instruments, alongside open market operations and standing facilities.
The calculation is based on a two-tier system:
- up to a defined threshold, sight deposits are remunerated at the SNB policy rate;
- above this threshold, the SNB applies the policy rate minus a certain number of basis points;
- when the policy rate is 0%, the portion exceeding the threshold is therefore subject to a negative rate;
- deposits held to meet minimum reserve requirements are not subject to any rate.
The negative rate therefore does not affect all of the banks' deposits. It only hits the excess above the threshold, which makes it a targeted instrument.
Why does a negative rate apply in Switzerland in 2026?
The negative rate applies because the SNB kept its policy rate at 0% on 24 September 2026. That day, it also left the discount above the threshold at 0.25 percentage point. Its press release did not specify the level of the threshold, as noted in our article on the policy rate being held at 0%.
The SNB justified holding the rate by contained inflation. According to the SNB, annual inflation rose from 0.6% in May to 0.8% in August 2026. Its conditional forecast, calculated assuming a rate of 0%, gave 0.7% for 2026, then 0.8% for 2027 and for 2028. These figures are forecasts, revised at each assessment, not observations.
Switzerland thus stands apart from its neighbours. According to a Keystone-ATS dispatch, the SNB was able to keep its rate at zero thanks to persistently low inflation. The European Central Bank (ECB) and the US Federal Reserve (Fed), for their part, had recently raised their rates. This interest rate gap weighs on the franc, as detailed in our article on the franc and interventions.
Why does the SNB use this two-tier system?
The two-tier system serves to keep the money market alive. The SNB explains that it encourages sight deposit account holders to trade liquidity among themselves. The rate on sight deposits allows it to keep short-term rates on the secured money market in francs close to its policy rate.
Other tools complement this framework. Through repo transactions, the SNB acts on the quantity of francs available in the financial system. It also issues its own short-term securities, SNB Bills, in two auctions every Thursday.
Why did SARON fall below zero?
SARON, the franc's reference rate for overnight loans, stood at −0.05% on 20 October 2026, according to the SNB. It arises precisely from the secured money market that the SNB seeks to steer, as explained on our page on the SARON rate and how it is calculated.
The negative rate on excess deposits provides a framework for interpreting this gap. The pages consulted, however, do not directly link the 0.05-point gap to this mechanism. It is a possible explanation, not a measurement.
| Indicator | Level | Date |
|---|---|---|
| SNB policy rate | 0.00% | 21 October 2026 |
| Discount above the sight deposit threshold | 0.25 percentage point | 24 September 2026 |
| SARON | −0.05% | 20 October 2026 |
| Observed annual inflation | 0.8% | August 2026 |
What effects on mortgages in Switzerland?
A policy rate of 0% does not guarantee cheap mortgages. In the third quarter of 2026, fixed-rate mortgages became more expensive while the SNB stood still, according to Comparis indicative rates cited by Keystone-SDA.
- Over three years: 1.75% at the end of September 2026, compared with 1.38% three months earlier, i.e. 0.37 point more.
- Over five years: 1.9% at the end of September 2026.
- Over ten years: 2.07%, a level not seen since March 2025.
According to this dispatch, rising rates abroad were feeding through to the Swiss capital market and making bank refinancing more expensive. Our article on the rise in mortgage rates details these figures. An indicative rate shows a trend, not the rate a given borrower will obtain.
SARON-linked mortgages follow a different logic. SARON is only one component of the rate paid, alongside the bank's margin. The sources consulted do not give the level of these margins.
What effects on savings and pension funds?
On savings, the sources consulted do not quantify any bank rate. The press release of 24 September 2026 says nothing about savings accounts either. Inflation remains the available benchmark for a saver: 0.8% in August 2026, as the annual change in the Swiss consumer price index.
On pension funds, none of the sources consulted addresses the effects of negative rates. This article therefore cannot assert anything about them. Nor does it constitute investment advice.
What could the assessment of 10 December 2026 change?
The SNB's next assessment is scheduled for 10 December 2026, according to the calendar of its SNB quarterly assessment. The SNB publishes two separate notes on the remuneration of sight deposits: one for a policy rate equal to zero, the other for a rate above zero.
Views on the outcome diverge. Raiffeisen economists believe that a hike could come as early as 10 December 2026. Financial expert Dirk Renkert, cited by Keystone-SDA, felt on the contrary that the SNB should not be "in any particular hurry to raise rates" in the short term. None of these opinions binds the SNB.
Key figures
- SNB policy rate: 0.00% as of 21 October 2026.
- Discount above the sight deposit threshold: 0.25 percentage point, confirmed on 24 September 2026.
- SARON: −0.05% as of 20 October 2026.
- Annual inflation: 0.6% in May and 0.8% in August 2026.
- Inflation forecast by the SNB in September 2026: 0.7% in 2026, 0.8% in 2027 and in 2028.
- Ten-year fixed mortgage: 2.07% at the end of September 2026 (Comparis indicative rate).
- Archive of SNB decisions: from 2000 to 2026, one page per year.
What we don't know yet
Several points remain beyond the reach of the sources consulted for this article:
- the history from 2015 to 2022: the date negative rates were introduced, their successive levels and their exit, which the pages reviewed do not trace;
- the level of the sight deposit threshold, which neither the press release nor the implementation page quantifies;
- the effects of negative rates on savings accounts and pension funds;
- the decision of 10 December 2026 and its consequences for the remuneration of sight deposits.
