My ZKB bank keeps calling me and telling me to put my money in a savings account. I am not really a money minded person so I looked into it bit more properly and it seems that their interest rates are really low. I want to put 200k away but ZKB will give me around 1k interest compared to Post Finance's 2.5k per year. Why such a difference?

Is there any good reason why I should stay with ZKB and not move to Post Finance bank?

you should ask yourself if you anticipate needing that money anytime soon or if you have otherwise a positive cash flow.

obviously, investments always depend on the individual's situation. if you have further investments/assets similar or larger in size there is actually no reason at all in keeping that money in a savings account. as you said you aren't a money minded person, you should consider "safe" long-term investments in bonds or property as they are considered lower risk and don't demand constant attention (one can argue about both, however there should be fairly risk-free options for both paths)

I won't be needing the 200k anytime soon. It's just savings.

I have another 100k sitting in my current account. Apart from that I have no substantial assets. What do you suggest?

Isn't keeping 200k in savings account a safe option? I mean can anything be more safer than that? Isn't getting 2.5k interest every year better than keeping it in the current account and not getting anything?

well i think you just answered your own question....
you could invest in some bods etc also

the post finance application form is a pain in the arse. i still haven't gathered the mental energy to fill it in several months after receiving it.

esp. compared to the swissquote form where i signed a couple of pages and sent it off the same day.

needless to say, the money intended for the savings a/c is now in swissquote and is generating a far better return.

maybe you should consider investing it. cash is never going to generate decent returns.

Problem is I don't know anything about investing and the recent economic crisis has made me feel that my ignorance might be blessing in disguise.
Do you mean buying property? Ain't my savings too low for that kind of investment?

Buy bodies? As in human slaves? How much do they cost? Ok how would I go about buying bonds in Zurich? I don't want to risk losing my money in any way though.

Quite a few Swiss have their money with German banks, as you get a much higher rate of interest. Just saying, of course.

As to the property, yes and no, depends on what your other "factors" are. 200k and a steady income / decent pension scheme should have you qualify as far as I can tell.

About "Swiss have their money with German banks, as you get a much higher rate of interest" yes but if that is a euro account then the recent exchange rate loss wiped out the benefits of any better interest rate & then some.....

You are right, between ZKB and Post, ZKB would be the better option.
Also havin that kind of money in cash account doesn't make sense.
If you really have that kind of money, which you don't require for a substantial amount of time, you could do some research yourself or get the help of any financial advisor, who would very easily generate more returns than what's ZKB is offering. There are a lot of good (almost risk free) companies that issue bonds with better returns.

Sorry I stand corrected her, Post offers you better returns.

You making out as if having 300k is like having1 billion
Why? Do you mean if currency falls in value then I have nothing physical like a property to show for it?

This is where I am completely dumb. How would I know the difference between something that will clean me out and something that would leave my money safe? Where do I buy these bonds and what kind of return do I get on them? Is there something which guarantee safety of the 200k but only the money made on top varies depending on luck and market circumstances?

Buying a flat seems attractive but not sure if I want such a responsibility. I will most probably stay single and free so doubt I will have kids to pass my property on to. It might still be wise to have a flat for when I get old?

I agree. You are financially dumb Having 200k is a heck of a load of money to many people. Sticking in the bank isn't going to keep up with inflation in the long run, meaning your 200k may buy less in 20 years time because the price of goods and services has increased.

Property is a hassle, but there is no way we could have earned or saved the amount in capital growth we have had from property over the last 12 years (in Switzerland, London and Sydney).

Just don't go investing your money in some kind of fund that you ain't too sure about. Read all the small print and how much you are paying in commission. With some of them the first couple of years payments can be eaten up in commission. UBS was trying to push various funds on us when they saw we had a big account balance. None of the funds were guaranteed despite being advertised as "low risk". My our father lost a load of money by investing in his pension fund too. Australia was giving tax breaks for this, so he put everything in it. At least with property, you can live in it

We thanked UBS for telling us about our large account balance (gee..I had no idea ) and promptly moved the money somewhere else with a better return.

Sorry, probably my fault viewing it from a pure financial perspective. As they say you make your money work for you, and not let it lie idle. In your case, one could say your money is working for you ineffeciently.

My point here is that if you don't want to do the research yourself, you get the help of any financial consultant to help you out.

Cannnot comment on this, as one has to consider the pro's/con's on a personal level, and subject to individual preferences.

Told ya

So you have property in all 3 places or you just kept buying and selling as you moved around? Ok in next 1-2 years I will start looking into buying a flat as Switzerland most likely will be my permanent abode. What shall I do with the money till then?