Time is money – even when it comes to building wealth

For a long time, savings accounts were considered the best way to build wealth. High interest rates meant that savings grew every year: until 1997, they were consistently above 2 per cent – and in the mid-1970s and early 1990s, they were as high as 5 per cent.

However, those days are over: interest rates have been low for years. In mid-2025, the average interest rate on Swiss savings accounts was just 0.18 per cent. That’s not enough to build up wealth – even for those who have a long time to save.

Everyday costs are rising – purchasing power is falling

On closer inspection, wealth is actually losing value. This is because everyday costs exceed the growth in wealth held in savings accounts. As a result, savings are losing purchasing power in real terms – your money buys less and less.

Health insurance premiums have risen by an average of 53 per cent since 2016. Renting a flat now costs on average over 70 per cent more than in 1990, and in 2024 an espresso was on average 52 centimes more expensive than 10 years earlier.

Investing money enables wealth growth

As the cost of living rises, it becomes increasingly important to increase the value of your savings in the long term. You can do this by investing your assets in the financial markets instead of leaving them in a savings account. And when it comes to investing, you can use time to your advantage: the earlier you invest, the more you benefit from growth.

If you invest 200 Swiss francs a month in shares today, you could build up assets of up to 33,000 francs in 10 years. In a savings account, your assets would be worth around 24,000 francs. In 20 years, the invested assets could amount to over 94,000 francs – compared to 48,000 in a savings account.

Share prices rise in the long term

A look back shows that stock markets tend to grow in the long term: since 1969, the Swiss stock market has achieved positive returns in 41 out of 56 years – despite temporary setbacks such as the dot-com bubble from 2000 to 2003, the financial crisis from 2007 to 2009 and the coronavirus pandemic in 2020.

Overall, share prices have risen over the decades. Those who invested between 2010 and 2024, for example, achieved an average increase in value of 7.2 per cent per year. Past performance is no guarantee of future gains, but history shows that investing pays off in the long term – despite setbacks.

Banks make wealth creation possible

Swiss banks enable us to participate in the long-term upward trend of the stock markets and build wealth over the years. Local financial institutions operate in a stable, regulated environment and have globally recognised expertise in wealth creation. Advice, risk analysis and a wide range of solutions make them reliable partners.