Why do people open a bank suisse account?

Question

What is the difference then having one in the US?
What are some positive reasons?
Negative reasons?

AKA Swiss Bank account

Answer 1

Swiss accounts are what you could say hands free, no questions asked, almost secretive accounts, that happen to be banked in Switzerland.

The benefits are mainly their descretion-always a benefit from beuracracies such as the IRS or SEC, so you won't have to worry about any harrassment as to why and how so much money is floating around an account, and it's tax free. They also don't care how you got the money and what you plan to do with it.

The downside is that they are uninsured and don't offer the marvelous interest rates that we wish we still had for our CD's and IRA's. So you won't make any money and if someone robs the bank, your account is not federally protected.

Another downside is withdrawing the money- if you do so in large quantities and spend the money as so, then your transaction will be questioned by the IRS.

Unless you're doing something illegal, you're better off somewhere insured.

Answer 2

Historically, Swiss banks had the strongest privacy rules. However, lately other nations have put pressure on them to open up a little so drug smugglers, terrorists, etc. don't have such an easy time hiding their money.

Answer 3

You evade paying tax
Negative reason 4 having it would be the high fees to set it up and keep it.

Answer 4

Swiss banks are INDEED insured. :) The gentleman above's info is entirely incorrect. :)

Go here.

http://www.swissbankaccount.com.ar/faq.htm