What are the earnings from a Swiss annuity?
Presently, all Swiss annuities earn a guaranteed interest (a technical interest rate), of 2% on the capital. While the technical interest rate is guaranteed, it may only be adjusted for new policies. For Swiss franc annuities, these are approximately the same rate as Swiss government bonds. Interest earnings are supplemented annually by any profit-sharing dividends, thus ensuring your annuity certificates earn competitive market rates. The annual dividends depend on the general level of interest rates in Switzerland and on the insurance companys investment performance. The dividends only, are adjusted to market interest rates annually, and therefore are not guaranteed as to performance for the future. Historically, the average dividend rate paid out on Swiss franc annuities has been 1% – 5%, depending on the currency selected. Also, there is a potential for strong capital gains. Due to the long-term strength of the Swiss franc, investors have made substantial exchange rate gains with S
