Swiss Franc

S

ShayK

Guest
Hi,
What are peoples thoughts on Swiss Franc deposits? Were the Euro to bust, I heard some advise that CHF would be quite a stable and strong currency to consider for deposits.

I'm not sure of the logisitics in completing such a deposit either, would I need an account with e.g. Credit Suisse? Is that even possible from Ireland?
 
Deposit rates are very low in Switzerland-generally pegged to ECB rates. At least they were when I lived there from 2002 to 2005.
 
I'm more worried about the Euro devaluing rather than taking on a lower interest rate.

Any advice on how to open one from Dublin? I've never traded in foreign currencies so apologies if this question appears quite simple
 
Keep in mind that any interest earned outside the EU is liable to income tax, not DIRT. I personally own some CHF, but not in Switzerland. If you are aiming to have some cash in strong currencies I would suggest not putting everything into one currency. Other strong currencies would be the Canadian, Australian, Singapore $.
 
ShayK said:
Hi,
What are peoples thoughts on Swiss Franc deposits? Were the Euro to bust, I heard some advise that CHF would be quite a stable and strong currency to consider for deposits.

I'm not sure of the logisitics in completing such a deposit either, would I need an account with e.g. Credit Suisse? Is that even possible from Ireland?
Click to expand...

First of all you should be aware that the Franc is considered to be over valued right now.

Second unless you are a Swiss resident it is not very easy to open an account over here. This is because there is now a lot of paper work involved in opening and managing non resident accounts due to the double taxation treaties and USA special agreements. Most banks will accept you as a Wealth Management client, but then they usually require you to place a very large sum of money on deposit with them - enough to make it worth their while to do all the administration involved.

Third if you hold a US passport or Green card, then don't even bother asking as most Swiss banks will no longer deal with Americans or person having a close relationship with the USA.

Also, a word of caution, we have many very small banks here that might be willing to take your deposit, but please check them out carefully as they may turn out to be no bigger than your local Credit Union branch.

Good luck,

Jim (Switerland)
 
Does anybody have a feel for what would happen to euro accounts in Switzerland if there was a break-up of the euro back to Punt Nua, Neue Deutsche Mark etc?
 
eggerb said:
Does anybody have a feel for what would happen to euro accounts in Switzerland if there was a break-up of the euro back to Punt Nua, Neue Deutsche Mark etc?
Click to expand...

The Euro is not the domestic currency in Switzerland, so they can't simply convert it to something else, it would most likely be worthless. It would simply be the consequences of holding foreign currency from a Swiss point of view - it is known as currency risk!

Jim (Switzerland)
 
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