Switzerland is known for its strong banking sector which has played a critical impact in its public economy for quite a long time. Many Swiss banks are investment banks, catering for worldwide investors and focusing on wealth management. However, there are also banks that offer day-to-day financial services.
Opening a Swiss bank account
Opening a bank account in Switzerland is not as difficult as some portray it, on the other hand, it’s not as easy. You can open up an account with some Swiss banks before you move if you are able to provide digital copies of documentation. In any case, the easiest way of opening up a Swiss bank account is in-person once you arrive.
Banking services in Switzerland
Banking products in Switzerland depend on who your banking provider is. However, most Swiss banks offer the services below:
- Current accounts: for day to day money management, including credit and debit card options.
- Loans and overdrafts: usually offered for the likes of vacations and home development.
- Mortgages: it’s a range of lending options for those looking to buy their own house.
- Savings and investments
- Insurance: options include, home, car, life, and health insurances.
- Online banking: major national banks offer internet banking so that customers can manage their finances with comfort either with your smartphone or tablet.
- Business banking: if you run a business in Switzerland, you can open up a business banking account with the bigger name banks.
- Expat services: some banks offer services and products aimed at the expat community, such as deals on international money transfers or multi-currency accounts.
Payment methods in Switzerland
- Cash
Over forty percent of transactions are carried out with cash, although cash sales account for 26.5% of turnover. Cash is more likely to be used for smaller sales, such as at newsagents and cafés. However, some people still prefer to use cash in larger transactions.
- Check
Checks are less broadly utilized in Switzerland than in numerous European nations so Swiss banks seldom offer checkbooks, despite the fact that you can typically get them on demand. Bank checks are sometimes used for larger payments or money transfers.
- Debit cards
Debit cards, frequently called EC cards in Switzerland, are the most well known type of Swiss payment. The introduction of the contactless debit card has increased its usage among young consumers in recent years.
Most Swiss banks issue debit cards with current accounts and they can be used for general payments both in stores and online.
- Credit cards
Credit cards are different to debit cards as they permit you to purchase products and pay later, typically through a quarterly or monthly credit card bill. Because of this, they tend to be used usually for larger purchases.
- Direct debits and standing orders
Swiss residents utilizes both direct debits and standing orders for making normal payments. Direct debits give consent to a third party to make regular charges of variable amounts directly to your bank. And standing orders are instructions to your bank to make a fixed regular payment to a third party.
- Online and mobile payments
Online payments over the internet and mobile payments using a smartphone app are becoming more commonly used in Switzerland. However, these payment methods still lag behind the usual payment methods in general terms.
Most Swiss internet payments are made using either debit or credit cards, additionally, mobile apps and payment wallets such as PayPal are also reasonably popular.
- Local money transfers
Although Switzerland is not part of the European Union, it participates in Single Euro Payment Area as part of the European Free Trade Association. This enables the fast and cheap transfer of money across Europe.
For local money transfers within Switzerland using Swiss francs, most people use local bank transfers.
- International money transfers
You can send money abroad through your Swiss bank, although they typically charge you for the transaction and you might also be charged by the recipients bank.Top of Form
Prerequisites for Swiss banking
Swiss banks employ a strict level of scrutiny in evaluating official documentation of your identity. Make sure you check your chosen bank’s requirements, in order to ensure that you have all the correct identification, record checks, and supporting documents. There is also a minimum age requirement for non-residents which is minimum of 18 years old.
Advantages of having a Swiss Bank Accounts
The Swiss economy is one of the most steady on the planet and has not been engaged with any contentions for many years. Opening a Swiss bank account either as a resident or a non-resident looking to have a normal Swiss account or a multi-currency account, there are a lot benefit attached to it. Outlined below are some:
- Investing and asset protection
Accounts held in Swiss Francs will procure a limited quantity of interest, but they will also be subject to Swiss withholding tax. With this in mind, the most of non-residents account holders opt to have their Swiss bank account in another currency. Switzerland is notable for offering various additional services, above and beyond easy banking. Many Swiss banks also have vaults for storing gold and other valuable assets for their clients.
- Privacy, discretion, and secrecy
In terms of privacy, Swiss law prevents the bank from disclosing any information regarding an account without the depositor’s permission. The only exception of information been revealed is if a government agency makes the claim that a depositor is involved in a serious criminal act or is involved in some other financial issue such as bankruptcies, divorces, and inheritances. Furthermore, Swiss anti-money-laundering regulations also require depositors to provide proof regarding the origin of the funds they are placing in their accounts.
- Offshore banking
Switzerland is one of the best offshore banking jurisdictions on the planet due to its financial dependability, sophisticated banking technology, and its low tax rates. While unknown numbered accounts are a thing of the past, Swiss banks still offers high level of confidentiality. This itself gives peace of mind to account owners who are worried about data protection and fraud.
Most Swiss Banks offer offshore banking to non-residents, including some of its investment banks. These accounts usually have distinct benefits such as multi-currency options and a larger range of cross-border services.
Changing banks or closing your bank account in Switzerland
The biggest banks in Switzerland offer exchanging services, where you can give details to your new bank and it will deal with corresponding with your present provider. Banks generally require you to fill out a form containing your previous account details, any additional cards, as well as regular incoming and outgoing payments.
Let’s say you are no longer in need of your Swiss bank account, closing it is usually an easy process. You’ll just need to contact your bank and ensure you’ve paid any outstanding charges. Assuming you’ve already opened a new account, you can transfer your assets across directly into it. Keep in mind, your bank may not fully close your account until all direct debits and standing orders have been canceled.
Remember, Damalion has always and will always strive hard to help in providing up to date information on how to open a bank account in Switzerland. And if you want to open a Swiss bank account, you are welcome to contact us now.
