How to Open a Swiss Bank Account

Swiss bank accounts are used by governments, businesses, and wealthy people to store and invest money.  The tradition of secrecy and protection offered by the Swiss banking system is well-known all over the world.  Here are the things you need to know if you want to open a Swiss bank account.

Swiss Banking

The banking system in Switzerland is a preferred banking system because of three characteristics:

• Neutrality. Finance and economics are almost always tied with political involvement.  Many believe that prosperity of Switzerland can be attributed to its neutral stance in many world affairs and instances of international conflict.
• Security.  The Swiss franc is one of the most stable currencies in the world, which makes it ideal for many prospective clients.
• Secrecy. Banking secrecy is upheld in Switzerland for centuries, although the Swiss banking law was first enforced in 1934.  Violating banking secrecy laws in Switzerland is considered a criminal offense.  Banking in Switzerland is regulated by the Swiss Financial Market Supervisory Authority.

Swiss Banks

Hundreds of global and local banks are headquartered in Switzerland:

• “The Two Big Banks” of the Swiss banking system are UBS AG (headquartered in Basel) and Credit Suisse (headquartered in Zürich).  Many people associate Swiss banks with these two banks.
• The Swiss National Bank is the central bank of Switzerland, and has its headquarters in Berne.  Unlike other central banks, the Swiss government does not have shares or stakes with the SNB, nor does the SNB have a controlling function in the Swiss banking system.
• Smaller banks in Switzerland are either institutions for cantonal regions, or are private banking firms for large corporations.

Steps

Here are the steps you need to apply for a Swiss bank account:

• Do your research. Both UBS and Credit Suisse have websites where you can freely explore the services they offer, as well as the history of the company.  If you can do the math, you may need to review stock indices and annual reports to see if the bank is secure and trusted.
• Have money ready. You need at least $1,000 for deposit (CHF 1,062) to open a Swiss bank account, plus maintenance fees and other fees that may be required by the bank.
• Read terms and conditions. When signing with the bank, make sure to read the fine print and check if you can honor terms and conditions.  Make sure that your money comes from clean, legitimate sources or businesses.

A Swiss bank account is mysterious to some people, but it is also considered a prestigious symbol of wealth.  With these tips, you can assure the stability and security of your investments with a Swiss bank account.