Investing money in Switzerland: Is it really worth it?
Exclusively and above all discreet and secure: Swiss banks were attractive for investors and savers from Germany, and what about today?
A account or a deposit in Switzerland, even if one does not have a residence there: Some people living in Germany have this. Others may be considering investing money in the Alpine Republic. What speaks for it, what against - we clarify the most important questions.
Can Germans really open a bank account or deposit money in Switzerland without further ado?
"Only a few Swiss banks offer accounts and deposits for foreigners," says Christian Lange, Managing Director of VZ Asset Management Bank. Therefore, anyone interested in investing money in Switzerland must contact the individual institutions.
However, there is no fundamental claim to opening a bank account, as Monika Dunant from the Swiss Banking Association in Basel explains.
Is there a minimum deposit?
"The conditions for opening a bank relationship in Switzerland vary for Germans and people from other countries, including the minimum deposit," says Dunant. This also applies to the minimum deposit. According to Christian Lange, it is usually in the range of six- to seven-figure amounts, and Swiss banks usually do not offer lower amounts to investors and savers.
Before opening a deposit or account in Switzerland, customers from Germany or other countries must usually appear in person at the respective financial institution to legitimize themselves.
What speaks for a bank account or a deposit in Switzerland, what against?
Dunant mentions a "multifaceted offering of high-quality financial services" as well as the legal security and stable conditions in Switzerland. In addition, she cites "the expertise and responsibility of banks and their employees, as well as their advisory and service quality."
However, many advantages that were once associated with investing in Switzerland no longer exist. The legendary Swiss banking secrecy belongs to the past. Since 2017, Swiss credit institutions have been required to report data on accounts and deposits of taxpayers to the competent tax office in Germany.
And in terms of security, Swiss banks are not safer than German banks, but roughly equivalent: In Switzerland, deposits are insured up to 100,000 Swiss francs per person, in Germany up to 100,000 euros per person.
Moreover, investing in Switzerland is usually more expensive than in Germany. "The transaction fees are relatively high in Switzerland," says Lange. In addition, there is often an overseas fee. Annual tax statements, which investors from Germany need for the tax office, cost many Swiss banks extra. "It quickly adds up to three-figure amounts," says Werner Bareis from the Consumer Center Baden-Württemberg.
Bareis also points out that low-cost investments such as ETF savings plans are only available at a few banks in Switzerland. According to the Consumer Center, they are usually more expensive than at direct banks in Germany. Investors could also not expect active fund and asset management at Swiss providers to function better than at others.
What alternatives are there if one wants to invest in Swiss francs?
Who prefers Swiss francs instead of euros does not have to bring their money across the border for investment. "Foreign currency investments are possible at German banks as well," says Bareis. Interested parties should consult with experts.
And what is behind the famous Swiss numbered account?
It is about the fact that the account holder or account holder is not named personally, but rather anonymized with a number. However, most Swiss banks no longer offer numbered accounts. For payments, the real identities must be stated.
The reason: In Switzerland, strict regulations apply to prevent money laundering and terrorist financing. The banks consistently implement the international standards of the Financial Action Task Force (FATF). "Numbered accounts, which would allow anonymous transactions, cannot be reconciled with the strict regulation in force in Switzerland," says Dunant.
- If you're considering investing money in Switzerland, you should contact individual Swiss banks directly, as only a few offer accounts and deposits for foreigners, according to Christian Lange.
- The minimum deposit for opening a bank account in Switzerland can vary greatly, with six- to seven-figure amounts often required, as Monika Dunant from the Swiss Banking Association explains.
- Switzerland has a multifaceted offering of high-quality financial services, legal security, and stable conditions, as well as expert and responsible banks, making it an attractive option for many investors, according to Dunant.
- Although Swiss banks are not inherently safer than German banks, they offer deposit insurance up to 100,000 Swiss francs per person, which is equivalent to Germany's 100,000 euros per person deposit insurance limit.
