Smart Methods to Cut Costs in Switzerland in the Year 2025: Tips and Tricks for a Frugal Life
Slick Savings in Switzerland:
Switzerland's inflation is on a downtrend, which is a boon for the purchasing power as it allows for reduced expenses on various consumer goods and services. But if you're looking to save more, here are some strategies to maximize your savings:
Supercharge Your Savings
Interest rates in Switzerland have been falling, which isn't great news if you have money stashed in the bank. However, some banks offer higher rates on savings than others, although you might need to move your funds to smaller institutions.
For instance, CEA Aubonne's 'Compte Epargne Plus' offers an annual interest rate of 1 percent, while Spar- und Leihkasse Frutigen's 'Sparkonto Plus 12 Monate' gives 0.9 percent. Clientis Caisse d’Epargne Courtelary's 'Compte Epargne Top' and Glarner Regionalbank's Anlagesparkonto offer 0.8 percent. Bank Wir and BSU's 'Beteiligungssparkonto' provide 0.75 percent. Although these rates aren't significantly high, they're still higher than what other banks offer.
Capitalize on Low Mortgage Rates
Property prices are soaring, but the good news is affordable mortgages! The Swiss National Bank's rate cuts have made mortgages more affordable. As of June 2025, 10-year fixed-rate mortgages are expected to fluctuate between 1.45 to 1.65 percent, while 5-year fixed-rate mortgages could range from 1.30 to 1.45 percent. Stay updated on the best mortgage deals here.
Legally Reduce Your Tax Burden
Lower your tax obligations by understanding the deductions you're entitled to claim on your declaration:
- Health, car, and life insurance costs
- Medical costs not covered by insurance
- Prescription glasses and contact lenses
- Dental expenses
- Personal expenses for continuing education related to your career
- Commuting expenses to work
- Voluntary, additional contributions to your occupational pension fund
- Tax exemption for each dependent child
You can find more deductions here.
Save on Health Insurance
During the November renewal of your obligatory health insurance policy, opt for cheaper models like health maintenance organizations (HMO), family doctor models, or Telmed alternatives to save up to 25 percent, 20 percent, and 15–20 percent, respectively.
Maximize Your Savings
Consider increasing your deductible to save on premiums and pay the premiums in one lump sum to benefit from a 2-percent reduction. But keep in mind that a higher deductible means you'll pay more during medical emergencies.
Switch to a More Affordable Mobile Plan
To save on your phone bill, be ready to change carriers or subscription plans. Compare plans on Moneyland or Comparis to find the most current and affordable offers.
- To further maximize your personal-finance savings in Switzerland, you can consider migrating your funds to smaller institutions that offer higher interest rates on savings accounts, such as CEA Aubonne's 'Compte Epargne Plus' or Spar- und Leihkasse Frutigen's 'Sparkonto Plus 12 Monate'.
- Swiss residents looking to save on healthcare expenses can take advantage of legally reduced tax burdens by claiming deductions for various personal expenses, including medical costs, car and life insurance costs, dental expenses, and commuting expenses to work.
- When it comes to healthcare insurance, opting for cheaper alternatives during your policy renewal, like health maintenance organizations (HMO), family doctor models, or Telmed, can result in savings of up to 25%, 20%, and 15-20%, respectively.
- To minimize your phone bill and save on personal-finance savings, it might be advantageous to switch to a more affordable mobile plan or carrier, and compare various plans on Moneyland or Comparis to find the best and most current offers.
