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Swiss Bank Account Benefits

Having a Swiss account if often heard in movies or in politics regarding millionaires or billionaires who have money hidden in their off-shore accounts. But what exactly are Swiss bank account benefits and why would people hide their money? What makes having that account better than my local bank account?

Basic Benefits

The Swiss Bank is currently the largest offshore banking in the world being closely followed by Singapore. Why is it so popular though?

There are 3 main advantages of having a Swiss Bank Account.

First, it is world-renowned for its privacy. Anyone can have money there if they want to protect certain assets and use it as a type of insurance. It would be a similar relationship that one might have with their doctor or lawyer. They may not disclose any information about you account without your consent thanks to the Swiss law. If they do, they will be prosecuted by the Swiss public attorney and can face up to 6 months in prison and 50k swiss francs for this crime.

International agreements over time though have made these accounts less and less private. If the government agency believes that there is illegal activity happening such as drug trafficking, insider trading or organized crime the information has to be revealed. This is also the case for other financial issues such as inheritance, bankrupcies, and divorces.

The second of the three Swiss Bank Account Benefits is that it is safe. It can be extremely smart to have your finances spread into different currencies in the even that something happens to your home country.

Switzerland is an extremely stable country therefore they have a stable currency. Even if something were to happen to the economy and there was a financial crisis, they have high capital requirements and a strong deopositor protection. Your deposits will be safe thanks to the Swiss Bankers Association (SBA) Depositors Protection Agreement.

Thirdly, the bankers are extremely money savy. They can provide invaluable advice and access on your investments and show you how to grow your net worth through stocks, bonds, and mutual funds.

Change with the times.

Not surprisingly the swiss bank account benefits have changed over time and it is not like hollywood movies where you can just jump on your private plane and run away with your tax-free hidden money and live happily ever after.

An example of this is in 2012 there was an agreement between the UK and the Swiss in regards to taxation on undeclared Swiss bank accounts. They are obliged to tell the UK goverment if you have a swiss bank account.

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