For many years Swiss bank accounts have been an enigma for most people. Most of us have heard about them in movies or read about them in stories. In most cases these are just fiction rather than being actual fact. People have the general notion that only millionaires, rich celebrities, corrupt government officials or criminals can have access to Swiss banks. In reality anybody can have an account in a Swiss bank.
Opening an account in a Swiss bank is more or less similar to opening an account in any other kind of bank. One has to fill out forms and submit credentials as proof of identity. Because of the superior level of privacy offered, access to these documents is much more strict than with ordinary banks.
People opt for Swiss bank accounts mainly due to maximum privacy and minimum monetary risks. The Swiss have a very stable economy and have been free from any disagreement for the past 100 years. They provide very strong protection to their customers and keep all transactions absolutely secret except in very severe cases where anything illicit is involved.
Swiss banks have had a rich history for over 300 years. They started with the French monarchs who always needed money and wanted it to be a secret. The regulations for the secrecy policies were established by the Great Council of Geneva in 1713. Aristocrats escaping the French Revolution found the banks to be completely safe to store their wealth.
In Switzerland, the bank laws are very strict regarding maintaining the confidentiality of their clients. All officers and employees are strictly prohibited to reveal information of any sort to the outside world, even the government of the country. But in cases of illegal matters such as illegitimate hoarding of money, bankruptcy, and evasion of taxes in foreign clients, the bank has to help the government of the country in question.
Residents of Switzerland with Swiss bank accounts have to pay a nominal tax of 35% on their bank interest. But for foreign clients there is no such taxation unless they are an investor of a Swiss company, the user is a citizen of the European Union or the client is an American citizen and has an investment in the securities of the country.
A foreign resident has to be at least 18 years old to be able to open a Swiss bank account. The account may be in any exchange but the Euro, US Dollar, Swiss Franc and Sterling are the most popularly opted currencies. There is no minimum balance for opening an account but once the account is established, stipulated balances have to be maintained. The account can be closed at any moment for no extra charge or any regulations.
Article Source: http://www.articlesbase.com/banking-articles/why-swiss-bank-accounts-are-so-popular-4700790.html
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