The Swiss National Bank (SNB) has announced a decrease in the interest factor for sight deposits, effective February 1, 2025.

The factor will be reduced from 22 to 20 for current account holders who are subject to minimum reserve requirements.

This adjustment is in response to increased minimum reserve requirements implemented on July 1, 2024.

The SNB stated that this change does not impact the overall monetary policy orientation.

The reduction aims to ensure the effective implementation of monetary policy and support an active money market.

Currently, sight deposits up to a certain limit earn interest at the SNB key rate, which is currently 0.50 percent.

Interest is not paid on amounts exceeding this limit.