Depositing money into a Swiss bank account is advantageous for many people. Swiss bank accounts offer privacy, protection of funds, and the Swiss Franc is one of the safest currencies to date. Money deposited in a Swiss bank account is a safe method of saving money.
When money is deposited into a Swiss bank account, bankers are required to keep this undisclosed. They are not allowed to disclose even the existence of a person’s account with the depositor’s consent. If drug trafficking, insider trading, or organized crime is suspected, this rule is subject to change. If, however, a banker discloses any information about a depositor under normal circumstances, the banker is prosecuted. The reason this protection is good is for people trying to hide money for some reason. A doctor, for example, afraid of malpractice may hide money in a Swiss bank account so it can’t be touched. Although this is unethical, it happens frequently.
Deposited Money is Safe
Swiss banks are under the rule of the Swiss Bankers Association, or the SBA. Through the SBA, a Depositor Protection Agreement exists and through this agreement, all deposits are protected and covered. In the event of a bank failure, all depositors receive all money they’d deposited. Money deposited in a Swiss account offers virtually no risk whatsoever, and it is readily available upon demand with no questions asked. There are different rules about paying taxes on any interest earned. If a citizen of the United States deposits money in a Swiss account, most likely, the person is required to pay taxes on the interest.
Swiss Franc is Safest Currency
The Swiss Franc is one of the safest currencies available. There is virtually zero inflation with this currency and the currency is backed up by at least 40 percent in gold reserves at all times. Switzerland is known for being a very stable economy. Switzerland tends to stay out of problems with other countries, and it is a very prosperous place. The Swiss economy, for hundreds of years, has been known for being safe and very stable.
Jennifer VanBaren started her professional online writing career in 2010. She taught college-level accounting, math and business classes for five years. Her writing highlights include publishing articles about music, business, gardening and home organization. She holds a Bachelor of Science in accounting and finance from St. Joseph's College in Rensselaer, Ind.