One of the many desires of today’s mobile affluent is Swiss bank account opening. Drilled into our subconscious by Hollywood and the media, this age-old wealth management tool is considered a rite of passage for high earners.
Owners of Swiss bank accounts find themselves in good company. Their peers include wealthy philanthropists, European royals, celebrated entrepreneurs, powerful families, and investors.
Plus, luxury-tailored financial services and private banking in Europe, specifically Swiss bank accounts come with bragging rights, social status, and exclusivity. The ability to excuse yourself from a dinner party by saying “That’s my banker in Zürich calling, I should really take the call” — hey, we’re not judging!
KEY TAKEAWAYS
- It is 100% for a non-resident to open a Swiss bank account
- Swiss banks offer private banking services and asset management services
- Swiss banking is not suitable for every client type
- Deposit requirements in Switzerland range from US $500,000 to US $1,000,000
- Bank requirements vary between banks, branches, and bankers
Everyone has their reason(s) for wanting a bank account in Switzerland. More often than not, most people are all chasing the same underlying benefits: safety, rock-solid banks, and secrecy.
This raises important questions about opening a bank account in Switzerland.
- Is a Swiss bank account worth it?
- Does a bank account in Switzerland really offer the benefits we’ve been sold?
- Are there more cost-effective and efficient banking options available elsewhere?
This article tackles these questions and more. We share how to navigate the complexities of opening Swiss bank accounts and how to take advantage of one of the most exclusive banking hubs on the planet.
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Use the table of contents to continue exploring more information on Swiss bank account opening.
Table of Contents
- Why Is Swiss Bank Account Opening So Popular?
- Why Do Non-Residents Open Swiss Bank Accounts?
- What Are the Benefits of Opening a Swiss Bank Account?
- Who Should Consider Banking in Switzerland?
- What Should I Know About Banking in Switzerland?
- What Are the Alternatives to Swiss Banking?
- Frequently Asked Questions
- Ready to Open an Offshore Bank Account?
Why Is Swiss Bank Account Opening So Popular?
Swiss bank account opening is a popular choice for many client types because of its stable banking system, financially sound banks, sophisticated banking services, and experienced bankers.
Banking in Switzerland conjures up images of sleek-looking Swiss bankers, private jets, numbered accounts, and bullet-proof secrecy. Unfortunately, this is not an entirely accurate picture of banking in Switzerland today.
Yes, Swiss banking has been around for hundreds of years and Swiss banking secrecy even predates present-day Switzerland. First adopted in 1713 to protect the interests of French kings who secured their finances with banks in Geneva.
Secrecy was, for hundreds of years, what attracted foreign financial interests to Switzerland. Every major international conflict brought inflows of foreign capital and in many instances, such as WWII, Swiss banks happily serviced opposing forces at the same time, such as the Nazis and the British.
A Swiss account was also attractive because it was the ultimate form of privacy, offering secrecy for families seeking a “safe haven” and protection from out-of-control governments, corruption, and taxation.
Does Banking Secrey Still Exist?
Today, banking secrecy in Switzerland no longer exists. Thanks to FATCA, the EU tax directive, and CRS, bank account information is now shared with the account holder’s country of tax residence and/or citizenship, as required by law. This is the case for any CRS or FATCA-compliant country today.
Given the dramatic changes in banking in Switzerland over the past decade, the question becomes: is opening a Swiss bank account still worth it? And if so, is Switzerland still the best place to reap these benefits? We explore this in a moment, but first, let’s look at what to expect when banking in Switzerland as a non-resident.
Why Do Non-Residents Open Swiss Bank Accounts?
Non-resident individuals who open Swiss bank accounts are usually looking for more than a day-to-day checking account. This is because Switzerland is focused on private banking and asset management. Non-residents looking for retail-level banking are quietly ignored or shown the door.
Opening bank accounts in Switzerland requires meeting a certain threshold of assets to get in. Banking here is most beneficial for those interested in private bank accounts, wealth management, or asset management. There is an expectation that you not only make a sizable deposit but also invest in the bank’s services and products.
This comes with some expectations, both in terms of fees and deposit amounts, as we show below.
What Are the Benefits of Opening a Swiss Bank Account?
Even though banking secrecy is long gone, there are still several benefits that most people (and entities) achieve when opening a bank account in Switzerland.
The benefits of opening Swiss bank accounts are intriguing and wide in variety. Typically, they center around serving the needs of wealthy clients with international interests, cross-border families, and complex structures.
Here are nine benefits non-resident clients typically take advantage of when opening a Swiss bank account.
Benefits of Banking in Switzerland
- Financially sound banks
- Sophisticated & responsive bankers
- Stable political & economic environment
- Stable currency
- Familiar with the needs of international & non-resident clients
- Willing to accept clients from the Unlucky Passport Club
- Willing to accept foreign entities and asset planning structures
- Wide range of international investment options
- Additional wealth management, tax planning, and asset management services
There’s a clear focus on international clients. Such services usually extend beyond banking and wealth management, including tax advisory, accounting, trust services, estate planning, financing, asset protection, and more. We dive more into these topics in our other banking articles in our private banking archives.
Put simply, if you require international planning, asset management, and trust services, you probably have enough money to open bank accounts in Switzerland or even the option to consider other sophisticated banking hubs including a Monaco bank account.
Who Should Consider Banking in Switzerland?
Opening a bank account in Switzerland is often reserved for wealthy individuals, families, and entities that make sizable deposits.
What is a sizable deposit? And what is expected after an initial deposit is made? Let’s explore these and other considerations to determine who should open a bank account in Switzerland.
Deposit Requirements for Opening Swiss Bank Accounts
Private banking typically requires minimum deposits in the range of USD 500,000 to USD 3,000,000. This does depend on the country, bank, and banker.
Deposit requirements, of course, are lower if you’re looking at less traditional private banking hubs such as Andorra, Isle of Man, or Panama. Check out these countries if you are looking to open a private bank account with USD 100,000 to USD 300,000.
Individuals need to be prepared to make a qualifying deposit of at least USD 1,000,000 to successfully open a bank account in Switzerland as a non-resident.
Banks Investment Management Services
The process of opening a Swiss account is different from other countries for several reasons.
One of the first differences that most people new to private banking notice is the expectation that the money “deposited” is to be invested. Typically, once the account is funded, it’s then invested in one of a few ways:
- By the bank via discretionary management
- Through the bank via the bank’s brokerage arm
- With the bank via bank-owned investment products
- Or through an external asset manager that uses the bank as a custodian
Individuals looking to open a Swiss bank account need to expect that they are required to invest all (or some) of the funds they deposit.
Note: if investing isn’t your goal in opening a Swiss bank account, you need to consider alternative banking jurisdictions or banks that are not focused on private banking services.
International & Cross-Border Clients
Unlike many banking hubs today, Switzerland doesn’t discriminate. Swiss banks offer services to clients hailing from a wide range of countries and residencies. The normal rules apply to sanctioned countries, but outside of this, most Swiss banks are comfortable, familiar, and experienced with onboarding clients from countries that are typically considered undesirable, high-risk, or best avoided.
Some individuals from the Unlucky Passport Club are eligible to open personal bank accounts in Switzerland, including individuals from Eastern European or Asian countries, Russia, Ukraine, Kazakhstan, China, the Middle East, CIS, and many more.
Clients with complex international structures (and lifestyles) may find opening an account with a bank in Switzerland more accommodating than in other countries.
Additionally, remote opening is 100% possible in certain circumstances and certain bankers meet clients abroad. Choosing the right bank, division, and banker in Switzerland is critical for this to happen.
What Should I Know About Banking in Switzerland?
Opening an account with a Swiss bank is like owning a vintage Ferrari. A Swiss account is flashy, rarefied, and makes a clear statement about the account owner.
A Swiss account is best suited to individuals, families, and entities with at least USD 500,000 in investable assets, with plans to grow. It’s equally important to have a grasp on the services you desire, require, and afford.
Opening an account in Switzerland is not without its problems and challenges. Many private banking horror stories start and end with people blindly opening accounts they don’t need, paying inflated fees, and being set up with accounts, services, and products they didn’t require.
This isn’t unique to opening a Swiss account. This takes place in every country where private banking exists.
Here are five important considerations to keep in mind while going through the process of opening a Swiss bank account.
Factors to Consider When Opening a Swiss Bank Account
- Account management fees (Percentage of your invested amount)
- Outgoing transaction account fees (Incoming is usually free)
- Fees for extra services (Legal, tax planning, structuring, accounting, etc.)
- Investment fees (Investment products owned by the bank)
- Kickbacks on investments (for investment products not owned by the bank)
The best thing to do is to have a clear understanding of all the fees the bank charges before opening the account and signing any mandates or agreements. Additionally, making sure you understand how (and when) such fees change in the future is also critical.
We explain exactly how to do this in detail in GlobalBanks IQ. We show you how to take advantage of the private banking world, make more money, avoid the biggest (and most expensive) pitfalls, and give you everything you need to select the best bank and banker.
What Are the Alternatives to Swiss Banking?
A common mistake people make when first stepping into the world of opening private bank accounts is they don’t consider all the options available to them.
Bank fees, product offerings, areas of specialization and expertise, banker accessibility, and responsiveness are all critical elements.
Surprisingly, there are several private banks available that are comparable to Swiss banks. Some have lower costs and a fraction of the required deposit minimums.
We’ve already covered several of these countries previously, in either Banking Intelligence Reports or past articles. Examples of other countries for private banking that we’ve covered include the following list (in alphabetical order).
Private Banking Jurisdictions
- Andorra
- Austria
- Bahamas
- Cayman Islands
- Gibraltar
- Guernsey
- Isle of Man
- Jersey
- Liechtenstein
- Luxembourg
- Monaco
- Singapore
- Switzerland
- UK
- USA
Choosing the best option requires knowing which products and services you need, which areas of specialization and expertise you need, what fees you can afford, how much you’re willing to realistically deposit and invest, and several other factors.
Then, you need to select the right banks, find a private banker who has your best interests at heart, know which terms and fees to negotiate, what’s normal, and what to watch out for.
Sometimes, just sorting out what you need is a daunting and complicated process. But, it can be worth it if you’re one of the clients referenced above and want to tap into the best personal banking services available.
Frequently Asked Questions
Below are two of the most common questions we receive from people exploring Swiss bank account opening. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
How Much Money Do You Need to Open a Swiss Bank Account?
The amount of money you need to open a Swiss bank account depends on a few key variables, including your citizenship, residency, account type, financial services, and the bank you choose. Generally speaking, deposit requirements range from CHF 500,000 to CHF 3,000,000.
Can I Open a Swiss Bank Account as a Foreigner?
Yes, you can open a Swiss bank account as a foreigner as long as you choose the right bank, meet the bank’s requirements, and have a suitable client profile. It’s important to note that not all banks in Switzerland accept foreigners. Bank selection is an important factor to consider before applying to open an account.
Ready to Open an Offshore Bank Account?
If so, you can access GlobalBanks Insider and start the process of applying for an offshore account in a few clicks.
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