The GDP of Switzerland is higher than most of the countries in the world and that is why it is counted in one of the most prosperous nations in the world. To open an account there you will see the sign board outside the bank saying ‘Private Banking’, which is always a satisfying to anyone who wants to open a new account, especially at the Swiss Bank.  But actually that private bank is for millionaires, who are mostly from the third world countries and it requires $100,000 as a first deposit. Opening regular account does not need such a big deposit and is relatively the easier one.

An Account Opening

In Switzerland, according to the laws and regulations any adult person can open an account. However, the bank holds the right to reject any customer for providing the services. For example, the bank can refuse to provide the services to a politically-exposed person, which can harm the bank’s reputation if that person becomes the bank client. The bank can also refuse to provide services to a person whose income sources are not reliable for the bank, or that person is generating income from criminal activities.

An Account for Companies

There are two types of accounts for companies in Switzerland.

• Companies registered and working in Switzerland.
• Companies registered and working abroad.

For the company, registered and working in Switzerland, the bank can gather the relevant information about the company.  The information can be collected from the Swizz Commercial Register on the company’s relevant website.

For the company, registered and working outside Switzerland than they must provide the relevant information required by the bank and prove its existence.

Swiss Banks Vs American Banks

One of the significant differences between the ordinary people bank and the Swiss bank is that, the regular banks let you pay the bills by sending pink slips in the mails. However, since American’s are used to the power of plastic while paying for the groceries or food at a restaurant, they hardly ever prefer the use of the credit cards. So when both the credit card and the checkbooks aren’t available, then there is no option left. One thing people don’t understand about the Swiss Banking is the monthly cash limit in the ATM machines. It’s quite confusing that why there are limits defined for the cash withdrawal. Different people go and try to persuade the teller to increase the monthly cash limit for the cash machines, and the tellers too, unwillingly, give them an approval.

PIN Privileges

Swiss accounts, sometimes also put people into trouble by changing their bank card. People often rush to the bank by such complaint and they are asked that they will get a different type of a bank card. Furthermore, the bank sometimes withdraws the PIN privileges. Read the full story

It is not easy to get loan from bank if you don’t have Social security number but it is also not impossible. In United States students can get loan easily. Bank utilizes Social Security number to reference and verify financial condition of specific person before investing on him. It just helps them to save from fake people. But under laws and term and condition, any person can refuse to show his Security number.

Law for SSN

Many bankers refuse to give loan to person with no SSN. But legally, he don’t have right to do so. According to CFR 3 A7 404.1905, any non- citizen can open its account without SSN. If any banker decline to open account without SSN, person can persuade or pressurize him for loan under legal situation.

Under internal Revenue Code (IRC) Section 6041, Banks are not legally eligible to ask identification number from taxpayer at end of the year. According to 42 USC 408, it is illegal to threatening or force individual to show his SSN. So if banker straight forward refuse to lend loan, one could claim in court. It is much easier way to get help from loan.  Court tries to provide total relief to citizens and non-citizens and give them all legal rights.

Credit Cards

In United States, it is much easier for a non-citizen student to get loan. They can get credit cards and bank account in few days without having Social Security number (SSN). They don’t need to show all legal documents. They can easily get assistance in American banks and legal court also.

Students Loan without SSN

There are few banks who specifically give loans to all students i.e., citizen or non- citizen. They invest on their education under certain conditions. International student can easily get advantages of all those packages. They just need to give verification from their educational institution. Read the full story

The first “Modern Credit Card” that can be used for paying parties other than the card issuer was started in 1950. It was issued by Diners Club in New York City. Initially they were issued to about two hundred people, most of them known to the owner. These were used mainly at the restaurants and were accepted at 14 places initially.

Since then there have been many developments in the credit card industry. Here is a choice of 10 interesting facts about credit cards.

1. Most Expensive Credit Card

Black Centurion Card offered by American Express is the most expensive credit card at the moment. It has an annual fee of $2,500 and requires the cardholder to spend at least $250,000 a year through credit card transactions. In some countries it also requires a
one-time joining fee.

2. How Visa Card Came Into Existence

In 1958 a credit card was issued by Bank of America. In 1970 the other American banks also joined and its control was handed over to a joint financial venture. In 1976 the name Visa was given to this operation.

3. Cash Back Bonus

Sears introduced its Discover Card in 1985. It was a big hit not only because it did not charge any annual fee, but it also actually offered an up to 5% Cash Back Bonus.

4. Is Low Minimum Payment Good For You?

The answer is a big NO, because that means more of the unpaid debt, which ultimately means more INTEREST.

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In America there are many banks who failed in 2009 because of recession problem. America faced a huge financial crisis last year.

Recession problem

American banks failed because of recession problem. Recession is a condition in which economy goes down and many large companies dissolved. America faced recession problem in 2009.

FDIC insured banks

FDIC is a government department and it is dealing with the failure of American banks. Those banks that are registered with FDIC are secure because this department provides extra funds for their stability.

List of banks failed in 2009

Following are the failed banks in 2009;

• First Federal Bank of California, Santa Monica, CA on 18, December, 2009 with an estimated cost to DIF ($millions) 146.3
• Imperial Capital Bank, La Jolla, CA on 18, December, 2009 with an estimated cost to DIF ($millions)619.2
• Independent Bankers’ Bank, Springfield, IL on 18, December,2009 with an estimated cost to DIF ($millions)68.4
• New South Federal Savings Bank, Irondale, AL on 18, December, 2009 with an estimated cost to DIF ($millions)212.3
• Citizens State Bank, New Baltimore, MI on 18, December, 2009 with an estimated cost to DIF ($millions)76.6
• Peoples First Community Bank, Panama City, FL on 18, December, 2009 with an estimated cost to DIF ($millions)556.7
• RockBridge Commercial Bank, Atlanta, GA on  18, December, 2009 with an estimated cost to DIF ($millions)124.2
• The Buckhead Community Bank, Atlanta, GA on 04, December, 2009 with an estimated cost to DIF ($millions)241.4
• First Security National Bank, Norcross, GA on 04, December, 2009 with an estimated cost to DIF ($millions)30.1
• The Tattnall Bank, Reidsville, GA on 04, December, 2009 with an estimated cost to DIF ($millions)13.9 Read the full story

The Check Clearing for the 21st Century Act, or Check 21, was the name given to an act of American legislature that was passed on October 28, 2003, and took effect a year later. Check 21 has modified the way in which payments by check are processed in the United States, and streamlined communication between American banks. Banks by which Check 21 is chosen to use, process checks much more rapidly that affects consumers who are in the habit of “floating” when they write checks.

“Floating” refers to writing a check when in the account the funds are insufficient.

Electronic communications between banks

Electronic communications between banks are regulated by check 21. Now, there is no need to send a physical check to clear it, Bank B can now simply send an electronic image. Bank A confirms that the check is valid and then it instantly transfers the funds.

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