Should You Consider Private Banking Services? March 18, 2015My MoneyOff

When we want to set up a new bank account, we would normally do so by visiting a local branch or filling in an application form online. While this is fine for many people, there are some individuals that want a more bespoke service.

The thing about standard bank accounts is that they are designed for the masses. That means you don’t get any personal service such as dedicated bank managers. You have to share the resources the bank offers with millions of other customers.

There is an alternative to the conventional banks you might already use. I am, of course, talking about private banks! But, what exactly are they and should you consider them? In today’s article, I talk about private banking institutions at great length.

What are private banks?
We all know that conventional banks will happily set up accounts for anyone, regardless of status or income. But, there are times where one needs their money to get managed by an organization that has their best interests at heart.

Private banks are institutions that offer not just banking facilities. They also offer a range of value-added services. It’s those services that many people have a desire to use and are ones that are seldom provided by the typical banks that most folks use.

Who uses private banks?
There is a common misconception that only the wealthiest of people use private banks. Of course, the reality is somewhat different! People from all walks of life use private banking institutions.

For example, the typical clientele of a private bank includes:

  • Sportsmen and women;
  • Investors;
  • Entrepreneurs;
  • Those within the banking industry.

Private banks offer services aimed at those that want to invest six-figure sums. You don’t necessarily have to be a wealthy business person to set up an account. Some people, such as the recipients of large divorce settlements, open up accounts at private banks.

Some conventional banks offer private banking services besides their regular account offerings. Examples include HSBC, Barclays and the Bank of America.

Should you consider opening up a private bank?
There are some prerequisites that must apply to you if you want to open a private bank account. Primarily, you will usually need a six-figure sum to invest. You must also have a perfect credit record, and pass the usual fraud and ID checks that banks make.

Private banks are useful for those that have a stash of money but want to make it work for them, so to speak. They are excellent at helping you manage your wealth. Private banks will often do a risk audit for you so that you don’t end up investing your money in things that are likely to make you a loss.

They will make sure that you don’t miss out on any lucrative opportunities. In short, they are like the financial advisers you never had.

Some of the other benefits you can enjoy include a dedicated adviser. And access to a range of financial services seldom offered by conventional banks. If you need to manage your wealth wisely, a private bank will help you do that.

Photo by Docent | Shutterstock

Share this Article

Recommended

See all
CLICK TO SUBSCRIBE to Your PINK eNewsletter.

What’s Hot
See all

Little Pink Book