How to open an account in a Swiss bank? Part 1

How to open an account in a Swiss bank? Part 1

Last time we learnt about Swiss secrecy,  and I will continue telling you more interesting facts about Swiss Banks that can help you to improve your financial literacy. Recently, as you know, I came to study in Switzerland and became the rightful owner of a Swiss bank account. Do people joke about their holders in your country, too? Not surprisingly. But you can’t put me among those rich people who keep their millions in Swiss banks. So far! 😉

Studying banking regularities is completely new to me, different from what I am used to in my home country, such as “negative interest rate” (aren’t you used to the fact that you pay to the bank and not thу bank to you?) I started to think about various other banking issues. 

For example, is it even possible to open an account in a Swiss bank without living permanently in Switzerland?

Whether out of curiosity or out of direct intention, this question excites the minds of many people around the world, because Switzerland is listed as one of the world’s major piggy banks! So how do people do it? I researched the available content and wrote an article for you in question-and-answer format. 

So, you are not a Swiss citizen. Can you open an account in a Swiss bank?

With residents (citizens and residents, such as students like me who are studying in Switzerland) everything is clear. But what to do if you have nothing to do with this country? It turns out that you can still open an account, but not in all banks in Switzerland. Some banks also serve non-residents, but impose higher requirements to the procedure for opening an account than those who have a residence permit in Switzerland. Before opening an account, Swiss banks are required to verify the identity of the customer and the source of his capital.

How long does it take to open an account in a Swiss bank?

Because of the verification of client information, it takes longer to open an account for a non-resident. If previously the process of opening an account in a Swiss bank could take 7 days, now the minimum period may be up to one month. Proper preparation of documents for account opening will help to reduce this time frame.

Is any minimum deposit required? If so, what is the minimum deposit amount?

Depending on the bank selected, the minimum deposit or minimum balance may vary. People domiciled in Switzerland and people who cross the Swiss border for business purposes with some regularity can open an account with most banks in Switzerland without having to make any minimum deposit (e.g. UBS, Credit Suisse, Raiffeisen, Postfinance and cantonal banks).

Personas outside Switzerland, with the exception of the already mentioned category of permanently crossing the border for business purposes, are entitled to open an account at a Swiss bank for a minimum deposit of between 500,000 and 700,000 Swiss francs (the exact amount is agreed on a case-by-case basis). Due to the economic crisis in Russia, many are eager to open an account in a Swiss bank in order to preserve their assets, so financial houses in Switzerland tend to raise the minimum threshold for opening a deposit. As of early 2017, the minimum amount to open an account with a Swiss bank has risen in many cases to 1 million francs. Banks such as Credit Suisse and UBS open accounts for non-residents only if the minimum amount of assets from 5 million dollars.Non-residents may also open an account in a Swiss bank for trading purposes. In this case there are a number of features, for example, reduced minimum fee.

Is it possible to open an account in a Swiss bank via the Internet, mail, phone, e-mail or fax?

In many banks it is possible to apply remotely – electronically. However, the bank will always ask to provide the originals required to open an account.If the intermediary promises to open an account without providing original documents, we advise you not to use their services.

What documents do I need to open an account with a Swiss bank?

It is essential to have your passport, identity card (ID) or other official document that would indicate your identity. The bank may also ask for a document proving the origin of the funds to be deposited and that tax has been paid on the money deposited. The bank does not fully verify the information in the document, but only confirms its authenticity. It is important to note that every year, credit institutions impose more and more stringent requirements for the documents necessary to open an account.

In what currencies can I open accounts in Swiss banks?

All banks in Switzerland provide services for opening accounts in Swiss francs (CHF), as well as the most commonly used world currencies – Euro (EUR), U.S. dollars (USD) and British pounds (GBP). Accounts in some banks in Switzerland can also be opened in yuan, as well as in rubles, with the possibility of buying Russian stocks and bonds in local currency. Many ATMs (especially in airports and railway stations) issue both Swiss francs and euros. However, if the account is opened in Swiss francs, for a withdrawal in euros the bank may charge a fee, the amount of which is determined in the contract for opening a bank account. Some credit institutions also open accounts linked to the prices of precious metals.

Enough information for the first time, isn’t it? Next time I will continue telling you about Swiss Bank accounts in detail. Now go and open your first Swiss account remotely. You know how to do it now, right? You also can refresh your knowledge about  Swiss Banks by reading my first post.