This is made possible due to a relatively novel practice in Europe: the trust agreement. Under such an agreement, you commission the bank to invest your liquid assets with another bank. The bank acts under its own name but for your account. In such a way, the investment remains discreet.

Fiduciary deposits offer an extremely significant tax advantage. Interest is not paid to you by the Swiss bank, but directly by the foreign bank. In accordance with the Swiss taxation authorities, this revenue is not subject to the advance tax (35%) or the other forms of taxation (such as the stamp duty).

The interest rate is determined by the length of the deposit, the amount and the conditions in effect on the monetary market, but it is necessarily higher than the interest rate in effect for themonetary funds.

The minimum deposit is around 50,000 USD (or the equivalent of the currency with which you are investing). Since it is not a fund, you need to determine the length of your deposit (from one to 12 months) in advance. Fees are set according to this length and can amount to as much as 0.5% of the deposit (minimum 250 Swiss francs) for each order on your behalf (opening or extension of a deposit). Dividends are paid at the end of the fiscal year.

This type of investment is particularly suited for people wishing to obtain a better return than they would on monetary funds, and who wish to determine the length of their investment in advance. It also shields them from the advance tax

Advantages:

• Possibility of investment in most currencies
• No advance taxes
• No exchange risks
• Returns according to interest rates in effect on the monetary market and the length and amount of the deposit
• High level of confidentiality
• Choice of length of deposit (from one to 12 months)

Disadvantages:

• Fixed term (thus a little less liquid)
• Slightly higher fees
• Risk of borrower bankruptcy (statistically very low)