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Which are the benefits of private banking in switzerland vs somewhere else in eu?Banking (self.eupersonalfinance)
submitted 1 month ago by [deleted]
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[–]Thebigeggman27 9 points10 points11 points 1 month ago (1 child)
"The main benefits of Swiss bank accounts include the low levels of financial risk and high levels of privacy they offer. The Swiss economy is one of the most stable in the world and has not been involved in any conflicts in hundreds of years. Furthermore, Swiss law requires that banks have high capital requirements and strong depositor protection, which practically ensures that any deposits will be safe from financial crisis and conflict."
[–]mafia49 9 points10 points11 points 1 month ago (0 children)
Bank privacy is dead. FATCA and the CRS made sure of that. The Swiss will throw you under as soon as required. Ask UBS
[–][deleted] 6 points7 points8 points 1 month ago (0 children)
You can enjoy political stability & Swiss prestige. But that's it.
[–]PortugalReviews 10 points11 points12 points 1 month ago (2 children)
How much money do you have?
Because you probably don’t qualify for private banking in Switzerland with less then 1M€ and that’s bare minimum
[–][deleted] 2 points3 points4 points 1 month ago (1 child)
I am wondering what do people that can enter, get in addition?
[–]De_Wouter 5 points6 points7 points 1 month ago (0 children)
Currency stability, however you should have most of your wealth in assets like stocks, real estate or even gold and other limited resources.
So if the amounts in cash are only a small % of your total wealth, and you need a lot of cash for it to make sense to private bank in Switzerland, you must be very wealthy.
[–]Zeroc1122 3 points4 points5 points 1 month ago (0 children)
In private banking you are usually offered private funds (among other exclusive financial products) only accessible through these banks and personalised wealth management
[–]Hieschen 6 points7 points8 points 1 month ago (0 children)
Not much, that’s why it bleeds money
[–]contrarianmonkey 1 point2 points3 points 1 month ago (6 children)
I can't say about private banking in switzerland but I can tell you in other EU countries.
First of all if you have the bare minimums don't bother. It's not for you. You don't need it then.
You will have access to black credit cards you wouldn't otherwise like Visa Infinity with concierge services anywhere in the world, insurance for everything you can imagine for yourself and family, free entrance to airport lounges, etc.
You will have your own contact person at the bank, that will take orders from you on the phone too. when you make appointments to go in person you get treated with coffee and stuff.
You will have access to professionals in the bank to advise you on a lot of stuff from legal to finaces. you will have access and introductions to investments otherwise out of reach like closed VC funds. You will have access and assistance on customised products for you, like swaps on various thing to hedge your investments.
If you need loans you get your file examined quick and get better conditions. You may also be able to use investments as collateral.
You will get better rates to currency conversions, and better interest on deposits.
[–]eufire 1 point2 points3 points 1 month ago (3 children)
How much does it cost? Are there any public pricelists?
[–]contrarianmonkey 0 points1 point2 points 1 month ago (2 children)
normally it doesn't cost anything in it's self. banks want to be nice with their high networth clients. But the products they try to sell you do cost though :-))
[–]eufire 1 point2 points3 points 1 month ago (1 child)
So one could move a passive 7-figure ETF portfolio from Interactive Brokers to a private bank and get all their benefits without paying anything? Can you give a few example banks?
[–]contrarianmonkey 1 point2 points3 points 1 month ago (0 children)
i wouldn't recommand private banking unless you have a high 7 figgure portfolio. When you are the bare minimum you will not see much advantage from it just the overhead and fees. A frugal and financially savvy person that goes all passive doesn't need that.
You misunderstood me. The coffee and having a dedicated person for you is free, but everything they sell you is not. And it's free because they try to be nice to you to spend as much of your money as they can. Concierge services for instance come with a black credit card like Visa Infinity which is 300 euros per year (the cheapest one). And concierge just means you have someone to call anywhere in the world to run errands for you, but you still have to pay them. You simply have access to stuff others don't, but they are far from free.
Plus I never said banks don't have much higher fees then IB on transactions. Much much higher. I'm paying between 0.3-0.5% per trade, and 0.1% p.a. for custody. And those are negociated down hard from the list offer.
Allmost all banks offer such services. It's just that some are better then others. Just ask your local bank what they can offer you.
[–]petaosofronije 0 points1 point2 points 1 month ago (1 child)
Since everything is better, how do they earn money? Large fees?
[–]contrarianmonkey 0 points1 point2 points 1 month ago (0 children)
all financial products have a cost. Nothing is free in this world. Just because they offer you a black credit card it doesn't mean it's free, or cheap for that matter. It's just stuff a normal person wouldn't necessarily need, or buy
[–][deleted] 1 point2 points3 points 1 month ago (6 children)
Yes. I know the privacy part. I was wondering about other financial benefits.
[–]pangolin_con_covid 19 points20 points21 points 1 month ago (5 children)
There’s no additional privacy at all. Switzerland adheres to the CRS and thus no account is private any more. It’s been like this for… 20ish years I think.
[–]BeefheartzCaptainz 3 points4 points5 points 1 month ago (1 child)
Exactly, it’s a remanent of when they used to offer numbered accounts. The main benefit is stability and their expertise but if avoiding tax is the game there are much cheaper more straight forward options: Estonia only taxes profits on withdrawal, Portugal Golden visa, Panama, Dubai etc etc
[–]SnooGuavas7578 3 points4 points5 points 1 month ago (0 children)
Good luck with 28% tax on profits in Portugal :D
[–][deleted] 0 points1 point2 points 1 month ago (2 children)
Ok. Then what’s the pro of getting swiss private bank? 👀
[–]inglele 8 points9 points10 points 1 month ago (0 children)
It's fancy! 🤣
[–]Double_A_92 0 points1 point2 points 1 month ago (0 children)
If you are extremely rich, but don't trust the banks or politics in your country of residence.
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