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Old 27.02.2021, 08:04
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My interest rate is 0%, any suggestion

I find this week that the interest rate on my saving account in UBS is 0 (before I thought I had 0.01% interest rate).

Does anyone have any suggestion on the investment without too complicated procedures (e.g. can directly operate/buy/sell in the bank's app? this is not very important though). My target interest rate is between 1 ~ 4 % with low risk (so avoiding stocks).

Thanks
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Old 27.02.2021, 08:26
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Re: My interest rate is 0%, any suggestion

Thanks to the incredible costs of UBS, this doesn't exist. Any positive result of a low-risk investment is burn by the administrative costs. You better look outside of the bank.
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Old 27.02.2021, 09:11
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Re: My interest rate is 0%, any suggestion

Bonds, maybe?
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Old 27.02.2021, 09:24
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Re: My interest rate is 0%, any suggestion

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My target interest rate is between 1 ~ 4 % with low risk (so avoiding stocks).
And back in the real world, that would be a no.
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Old 27.02.2021, 09:25
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Re: My interest rate is 0%, any suggestion

Robo advisor and select low risk profile?

UBS will start charging negative interest rate on any total holding in cash above 250k as of July.

ANY UBS investment product or solution is way over priced!
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Old 27.02.2021, 09:27
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Re: My interest rate is 0%, any suggestion

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I find this week that the interest rate on my saving account in UBS is 0 (before I thought I had 0.01% interest rate).

Does anyone have any suggestion on the investment without too complicated procedures (e.g. can directly operate/buy/sell in the bank's app? this is not very important though). My target interest rate is between 1 ~ 4 % with low risk (so avoiding stocks).

Thanks
Base interest rate is - 0.75%, you are lucky you are not being charged to store your money. 1-4% target, well then you have to lend to people without jobs & hope they can repay.
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Old 27.02.2021, 10:30
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Re: My interest rate is 0%, any suggestion

So the moment you receive our salary, the inflation starts to steal it from our pocket. once we try to fight against the inflation, we risk losing more.
So what is the problem here? How to stop the steal in a safe way?
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Old 27.02.2021, 10:33
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Re: My interest rate is 0%, any suggestion

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So the moment you receive our salary, the inflation starts to steal it from our pocket. once we try to fight against the inflation, we risk losing more.
So what is the problem here? How to stop the steal in a safe way?
Invest in equities, over the long term the risk vanishes. S&P500 has returned 11.39% compound for 70 years.
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Old 27.02.2021, 10:44
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Re: My interest rate is 0%, any suggestion

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So the moment you receive our salary, the inflation starts to steal it from our pocket. once we try to fight against the inflation, we risk losing more?
We are in Switzerland, there is no inflation.

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So what is the problem here? How to stop the steal in a safe way?
Spend it.

Tom

Last edited by st2lemans; 27.02.2021 at 12:01.
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Old 27.02.2021, 11:38
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Re: My interest rate is 0%, any suggestion

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Robo advisor and select low risk profile?

UBS will start charging negative interest rate on any total holding in cash above 250k as of July.

ANY UBS investment product or solution is way over priced!
I opened an account at Selma last month (Swiss robot advisor) as suggested by an EF member and so far that's exactly what I was looking for!

https://www.selma.io/

If you think of signing up let me know, I have a code that will save you first year of fees
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Old 27.02.2021, 13:07
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Re: My interest rate is 0%, any suggestion

Sneaky bastards! I think there was a message from UBS 1-2 years ago informing about this, but I might remember incorrectly. They used to pay interest on rental deposit account too. For 5k I used to get 0.5 CHF yearly


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I find this week that the interest rate on my saving account in UBS is 0 (before I thought I had 0.01% interest rate).
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Old 27.02.2021, 13:13
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Re: My interest rate is 0%, any suggestion

Simple, easy and lazy solution. Open an account with Interactive Brokers, put everything on VT - a total world equity etf - forget it for the next 20 years. Open it after 20 years and enjoy the appreciation of your wealth. Don't forget to give the same advice to others
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Old 27.02.2021, 13:55
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Re: My interest rate is 0%, any suggestion

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Simple, easy and lazy solution. Open an account with Interactive Brokers, put everything on VT - a total world equity etf - forget it for the next 20 years. Open it after 20 years and enjoy the appreciation of your wealth. Don't forget to give the same advice to others
What amuses me with diversification, VT comprised 8,000 stocks however the top 10 holdings represent 25% & 75% spread over 7890 companies.

Top 10 holdings of S&P 500 is 28%
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Old 27.02.2021, 20:27
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Re: My interest rate is 0%, any suggestion

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What amuses me with diversification, VT comprised 8,000 stocks however the top 10 holdings represent 25% & 75% spread over 7890 companies.

Top 10 holdings of S&P 500 is 28%

hmm... i think one should also read this:


https://www.mauldineconomics.com/edi...s-in-one-baske
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Old 27.02.2021, 20:37
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Re: My interest rate is 0%, any suggestion

OP, do you’d really think that with a post on EF you are going to get investors



Sorry, just had to do it.
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Old 28.02.2021, 03:33
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Re: My interest rate is 0%, any suggestion

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And back in the real world, that would be a no.
At the bottom end of that 1-4% there are some pretty reliable options in the bond market.
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Old 28.02.2021, 05:20
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Re: My interest rate is 0%, any suggestion

I want to respectfully put forward a suggestion for you to consider, and that is to think about talking to a professional investor.

If you're unsure of where to put your money, especially at a time like now, a professional can help you examine your specific needs and situation .

All the best,

TheLaughingCow
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Old 28.02.2021, 09:51
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Re: My interest rate is 0%, any suggestion

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... a professional can help you examine your specific needs and situation .

All the best,

TheLaughingCow

Probably the "professional" will sell you a strategy fund of his bank that has 1.5% TER.
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Old 28.02.2021, 10:01
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Re: My interest rate is 0%, any suggestion

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I opened an account at Selma last month (Swiss robot advisor) as suggested by an EF member and so far that's exactly what I was looking for!

https://www.selma.io/

If you think of signing up let me know, I have a code that will save you first year of fees
Is Selma insured against bankruptcy like other banks?
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Old 28.02.2021, 10:05
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Re: My interest rate is 0%, any suggestion

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Is Selma insured against bankruptcy like other banks?
Selma is not a bank but uses Saxo Bank, which is also insured as any other banks in Switzerland (as far as I know )

https://support.selma.io/l/en/articl...-goes-bankrupt
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