Expert: Alexander J. Hay - 9/25/2004

Question
Alexander:
I don't know if you have exoerience in this area, but I would like to deposit some money in a Swiss Bank accout as a "safe haven" for the future.
I am a retiree who lost 3/4 of my life's savings in the "market downturn", and I would like to maintain some security for what little is left.
I am of the opinion that severe inflation in the near future may destroy future purchasing power.

So, given the above, I have some basic questions:
1. Are bank accounts of Swiss banks located in the US, insured by the FDIC.
2. When a deposit is made with a Swiss Bank is that deposit made in Swiss Francs.
3. If the value of the dollar decreases, will the value of my account in francs basically increase in US dollars.
4. Are there any Federal restrictions for American citizens to deposit money in foreign banks.
5. Do foreign banks located in the US have restrictions for depositors, such as minimum balance, etc.
Hope you can help.
Thanks
Nick M.  

Answer
First of all, putting money in a "Swiss Bank" is only useful if you are going to Switzerland, and putting the money in Swiss Francs.  Now they pay almost no interest, and the fees are high, but you are roughly secured against inflation.

doing business with a Swiss Bank in the US is no different than doing business with a US Bank, a Mexican Bank, etc.  There is really no such thing.  The "Swiss" Bank is really a US bank that is owned by a Swiss company, and as such must follow all the same rules.

If you would like some help and advise, feel free to contact me directly.