- A savings account does not lose you francs, it loses you purchasing power, every year, with certainty.
- The stock market loses temporarily. Over 20 years, the global index has never ended in a loss since it was created.
- In Switzerland, your capital gains are not taxed: your return stays whole.
CHF 100'000 over 20 years: three scenarios
Over 20 years, the savings account is the only one of the three that actually loses money. Example: 100'000 francs invested once, with no further contributions, and inflation of 2% a year, the top of the SNB's target.
| Scenario | Amount shown | In today's francs | Real gain or loss |
|---|---|---|---|
| Savings account at 0.5% | CHF 110'490 | CHF 74'356 | -CHF 25'644 |
| Balanced portfolio at 5% | CHF 265'330 | CHF 178'559 | +CHF 78'559 |
| Equity portfolio at 7% | CHF 386'968 | CHF 260'419 | +CHF 160'419 |
Historical returns, not guaranteed. 0.5% is already a good rate for a savings account at a large bank in 2026.
Even with gentler inflation of 1% a year, the savings account still loses almost 10'000 francs of purchasing power over 20 years.
Two risks, only one of which you see
Volatility
The portfolio can fall by a third, even by half, before recovering. Visible, painful, but temporary if you do not sell.
Inflation
A slow and certain loss of purchasing power. Invisible on your statement, and permanent.
Keeping your money "safe" is therefore not an absence of risk: it means accepting a certain loss instead of a possible, recoverable one.
What history shows
The falls are real, but over 20 years, the global equity index has never ended in a loss. Between late 2007 and early 2009, it lost more than half its value at the worst point; in March 2020, about 30% in a few weeks.
An investor who came in in January 2008, just before the crisis, got their money back within 5 to 6 years, then went beyond, provided they held on.
A fall becomes a permanent loss when you sell during the drop. It is behaviour, more than the market, that destroys capital.
How allocation changes these figures is explained in asset allocation over 25 years.
In Switzerland, a major advantage
In Switzerland, a private investor pays no tax on capital gains, whereas in France, Germany or Italy, every stock market gain is taxed at around 25 to 30%.
Dividends are still taxed as income, and the 35% withholding tax on Swiss dividends is reclaimed through your tax return. The full framework is in investing in Switzerland.
Waiting for the right moment costs more than bad timing
In the past, even an investor with the worst possible timing has done better, over 20 years, than someone who never invests. There is always a reason to wait: market too high, war, inflation, rates. Yet someone who invests every year at the market's peak, the worst possible moment, usually ends up well ahead of someone who keeps everything in a savings account for 20 years.
Where to start
- An emergency fund first: about 3 months of expenses in an accessible account, 6 if your income is variable, so you never have to sell at the worst moment (see where to keep your emergency fund).
- An honest horizon: money you will not need for at least 10 years.
- Diversification: a global index fund rather than a few shares. If one company collapses, the impact is minimal.
Next: your first stock market purchase, step by step.
Going further
The savings account still has a role: your emergency fund. About three months of expenses, six if your income is variable, must stay available right away. It is the rest, the money you will not need for years, that loses by sleeping.
Look at your real return. The right figure is not your account's rate, but that rate minus inflation. As long as it is negative, every year of waiting costs you.
The same logic applies to pillar 3a. A 3a left in an account earns almost nothing: the same tax deduction with an invested 3a can make a difference of almost 100'000 francs over 20 years of contributions. See the 3a limit.
Investing or not: see the difference1'500 paths depending on your allocation.
Open the calculatorYour next step
To do, at your own pace:
Path “Start investing” · step 1 of 8
Frequently asked questions
Can I lose everything with a global index fund?
Practically not: the thousands of companies it holds would all have to go bankrupt at the same time. Total loss is a real risk with a single share, not with a diversified global index.
What is inflation in Switzerland?
The Swiss National Bank targets inflation between 0% and 2%. It was about 0.5 to 1% a year between 2010 and 2020, reached 2.8% in 2022, then fell back well below 1%. Even at 1% a year, an account paying 0.5% loses purchasing power.
Does my savings account protect me from inflation?
No, as long as its interest rate stays below inflation. With the savings rates of the large banks today, the real return is zero or negative.
How long does it take to recover after a crash?
After 2008, the global index took about 5 to 6 years to get back to its level. After the March 2020 fall, a few months. With a 20-year horizon, a fall is an episode, not an end.
What return can I expect over 20 years?
Over long periods, global equities have returned about 7 to 9% a year before inflation, so about 5 to 7% after inflation, with years like 2008 (-40%) in between. This is not a guarantee.
Should I invest with less than CHF 10'000?
Yes, once your emergency fund of 3 months of expenses is in place. Some platforms let you invest from a few francs. Time matters more than the starting amount.
Sources: Swiss National Bank, definition of price stability ; FSO, Swiss consumer price index ; MSCI World index, historical performance ; FTA, capital gains and withholding tax. ViaVest calculations, historical returns not guaranteed.