How Swiss institutions fostered a culture of saving

Swiss banks and charitable institutions encouraged people to save as protection against hardship, helping build a strong savings culture, according to a history published by SRF. The article was written by Matthias Wiesmann for SWI swissinfo.

Until well into the 20th century, people had to prepare largely on their own for emergencies, with little outside help available. From around 1800, charitable organisations set up small regional savings banks, aiming to encourage thrift among poorer people and give them a secure way to earn interest on their savings. Cantonal banks and Raiffeisen banks later expanded access to savings accounts.

The campaign also served the interests of banks and the wider community. Larger savings could reduce reliance on church, municipal and private poor relief, while giving banks more money to lend to farmers and businesses for investments such as seeds, livestock and machinery.

Piggy banks became a prominent way to encourage saving. From around 1900, banks lent customers mostly oval metal boxes, keeping the key themselves. They were initially aimed not only at children: placed in a prominent spot at home, they could encourage adults to save and help keep part of a wage away from spending on alcohol or gambling.

When a box was full, its owner could take it to the bank, where staff opened it and credited the money to a savings account. Customers withdrawing money were sometimes asked to explain why, adding another social deterrent to spending.

From the middle of the 20th century, the role of personal savings began to change. The introduction of old-age and survivors’ insurance in 1948, followed by mandatory health insurance and other insurance schemes, reduced the emphasis on voluntary saving for emergencies. Regular compulsory premium payments took on part of that role.

In the second half of the century, schools also promoted saving, while banks increasingly addressed young people directly. The Zurich Cantonal Bank said in its 1948 annual report that young people were particularly vulnerable to impulsive spending and needed a special youth savings account. Piggy banks distributed from the 1970s continued the tradition, though their vulnerability to a few blows from a hammer weakened their image as symbols of iron discipline.