BCV increases the interest paid on savings accounts and its mortgage rate

BCV is adjusting its interest rates as a result of the continued upturn in money-market and bond-market rates. Interest on most savings accounts will increase by up to 0.5%. At the same time, interest rates on variable-rate mortgage loans will be raised. The benchmark mortgage rate will rise to 3.25% (+0.25%) as of 1 July 2007.

Lausanne, Switzerland, 4 May 2007 – In response to market conditions, BCV is to offer higher rates on a number of savings accounts and is raising the interest rates on variable-rate mortgages. The rise in rates takes effect immediately for new mortgage loans. It will be applied to existing mortgage loans and savings accounts as of 1 July 2007.

Higher rates on savings accounts

BCV will increase interest rates by 0.25% on building accounts, conventional savings accounts, "épargne progressif" accounts, "épargne +" accounts, and BCV euro accounts, while youth savings accounts will benefit from a 0.5% rise. The interest rates on these products are among the most competitive available on the market.

This decision reflects BCV's continued commitment to its role as a major player in the local savings market.

Increase in benchmark mortgage rate

As a result of this adjustment, the benchmark mortgage rate used to set rents in Vaud Canton pursuant to Swiss federal law will rise from 3% to 3.25% as of 1 July 2007. This new rate, which has been approved by the Board of Directors, corresponds to the variable-rate for first mortgage loans that BCV grants to the majority of its customers owning residential properties located in the Canton.

The benchmark rate was last raised on 1 March 1995. Since then, it has declined steadily from 6% to its present level of 3% in September 2005.

Contact(s)

Jacques Chamot, Acting Press Officer
Phone +41 21 212 20 99
E-mail

This press release is being issued outside the trading hours of the SIX, Swiss Exchange in order to comply with the principles of ad hoc disclosure pursuant to the SIX listing rules.