PostFinance adjusts interest rates

12.03.2010 | from PostFinance AG

12.03.2010, The financial arm of Swiss Post is to lower the rate of interest on its pension products by 0.25 percent. From 1 April 2010 the company will pay a reduced rate of 2.25 percent interest on its retirement savings account 3a, while the rate on its vested benefits accounts will be lowered to 1.75 percent.

In the savings segment, PostFinance will also reduce the interest rate for e-Deposito accounts in Swiss francs for private customers and small businesses by 0.25 percent. This means, for example, that adults will now receive 1.25 percent interest on an e-Deposito account in Swiss francs. Swiss franc Deposito accounts for private customers will also benefit from a lower interest rate of just 0.75 percent. Interest rates on Deposito and e- Deposito accounts held by private customers and small businesses in euros will fall by 0.375%.

Owing to the persistently low interest rates on the national and international money and capital markets, it is becoming increasingly difficult for PostFinance to invest its customer deposits profitably with reasonable risk. This situation is about to result in the company's first interest rate adjustment since May 2009. Even after these adjustments, however, PostFinance will still remain one of Switzerland's most attractive financial institutions in terms of interest rates, as well as in the retirement and savings segments.

--- END press release PostFinance adjusts interest rates ---

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