A Guide To Swiss Banking - Part 1
By Fiorenzo Fontana, Wed Dec 7th
In this guide, you will learn about the benefits of Swissbanking. You will also discover how to open a Swiss bankaccount, and how to use it for investment and savings purposes. Introduction Swiss bank accounts provide strict privacy, totalconfidentiality and are also tax-free. With a Swiss bank account you can also earn interest in thecurrency you wish to hold your account in (USD, CHF and EUR).You can also receive an international credit card and a numberedaccount if you choose.
Typical Swiss bank account clients Typical Swiss bank account clients come from all walks of life,from international consultants and sales representatives toexpatriates and computer programmers. In fact, anyone seeking togain financially (possibly through trading in the capitalmarkets, the sale of real estate, inheritance, or an insurancepolicy), or who wants to protect their estate in the event ofdivorce or inheritance, can take advantage of the benefits ofSwiss banking. Does it cost anything to open my Swiss bank account? Opening a Swiss bank account is often free of charge. Which documents do I need to open a Swiss account? Opening a Swiss bank account has never been easier. Before you arrive in Switzerland, you will be asked you to bringwith you some of the following documents: Passport You might also be asked to send an authenticated copy of yourpassport's photo page, showing your passport number, before youarrive. Financial background These documents show what you do for a living, for example acopy of a current bank statement, contract of employment or taxreturn. The exact documents required depend on the nature ofyour professional life. Origin of deposits These documents show the financial origin of your deposit. Forexample if you are depositing funds from the sale of a house,you might be asked to send proof of the sale, a copy of the realestate agent's listing, or similar. Personal Information You
are usually requested to provide only basic personalinformation. This information is required in compliance withSwiss anti-money-laundering laws and to understand your bankingneeds. All your information should be held in strict confidence.
Swiss bank accounts for US residents If you live in the US you can still open a Swiss bank account.However, there are some considerations. You should not invest inany US securities from your Swiss bank account if you want tokeep this account private. Also, you cannot invest in mostinvestment funds such as mutual funds. Security deposit To obtain a credit card for your Swiss bank account, you will berequired to make a security deposit. Depending on the bank youchoose, this deposit can be as much as 1.5 to 2 times yourmonthly credit limit. For example, if you have a maximum monthlylimit of USD 5,000, you will be asked to deposit anything fromUSD 7,500 to USD 10,000. This security is held in anotheraccount at the bank and invested in a fund. Your deposit will bereturned to you when you cancel your credit card and pay anyoutstanding bills. Question 1: Can I get a credit card without a security deposit? No. No bank will agree to issue a card without a securitydeposit. Question 2: Can the security deposit be used to pay credit cardbills? No. Bills are sent to you, and you must pay them separately. Ifthis is inconvenient, you can always authorise your bank todebit the amount from your account and they will hold the billuntil the next time you visit the branch. In the next installment, we deal with making deposits to andwithdrawals from your Swiss bank account. Fiorenzo Fontana online trading,currency trading, financial service About the author:Fiorenzo has held several senior positions in the financialservices industry as a trader and analyst at UBS. Fiorenzo hasbuilt a career spanning more than 25 years in investment bankingand capital markets trading. Mr. Fontana is a citizen andresident of Switzerland and a graduate of the Chiasso BusinessSchool, Switzerland. |
