Swiss banks have always been a bastion of reliability and a model of impeccable service. Clearly, the ideal option would be to ensure both safety and high interest rate for your funds, but those days are over.
Swiss banks with their near-zero interest rates on savings accounts (0.25% per annum is considered a very good rate) are becoming an attractive alternative for keeping your money in foreign currencies.
First, it depends on the currency and the amount of the deposit. Second, it only concerns deposits, and this is not the only financial instrument that foreign banks, particularly Swiss banks, are ready to offer their clients. You can keep the money in a settlement account, you can open an investment account and buy securities, bonds, etc. This yields more profit, but also carries more risks.
An application to open an account can be submitted remotely. However, you cannot complete the entire procedure without communicating with a bank representative at some point. In the overwhelming majority of cases, a meeting with a banker will be required to verify your identity. Sometimes an online interview is enough.
In general, Swiss banks could be divided into 4 groups:
Understandably, Switzerland will only benefit from its banks onboarding non-residents if these non-residents deposit a certain minimum. This ranges from EUR 500 000 at smaller banks to EUR 5 000 000.
Switzerland has standard requirements for the package of documents. These requirements are the same as any other foreign bank will have. You will need to provide your passport or its notarized copy, an original utility bill not older than 3 months to confirm your residential address, a CV, and completed bank forms.
The bank will also request proof of origin of the funds to be deposited in the account. Such proof may include, for example, a copy of your employment contract, if you are employed, or documents confirming your income from business, sale of property, inheritance, etc.
The requirements will vary from bank to bank and from client to client.
After verification of your identity, the bank initiates an internal compliance procedure.
In doing so, the bank runs a search in WorldCheck or a similar system for any evidence of wrongdoing by a prospective client or a client being a politically exposed person (PEP). Depending on the findings, the bank will conduct a regular or enhanced check under the AML laws.
Bank secrecy for Swiss banks is a requirement set out in the country’s legislation and its breach carries severe penalties for both the banks and their employees.
However, Switzerland has been exchanging information on financial accounts under the AEOI Standard since autumn 2018. And yes, if you are a resident of a country that makes such exchanges with Switzerland, your national tax office will receive the relevant information. But law-abiding citizens need not fear this.
If we are talking about Europe, non-resident clients are favoured by banks in such countries as Austria, Liechtenstein, Luxembourg, Monaco, and Andorra.
In Asia, Hong Kong and Singapore have banking offers of their own. However, their minimum balance requirements are 3 to 5 times higher than in Europe.
Among more recent additions to the list of countries for opening a foreign bank account, we should mention the UAE.
First, think of your needs and the purpose for which you open a Swiss account. Consider whether you need all the financial instruments made accessible by foreign banks, or whether you simply want an “account + card” option. By the way, this will also affect the cost of maintaining the account.
And second, since applying for a Swiss bank account is usually done through specialized intermediary firms, you will need to choose such a firm very carefully in order to avoid non-professionals.
Naturally, it is possible to approach the bank directly (given the sufficient knowledge of the language), but involving a specialist will make your life easier when: