Private Banking: Is It Worthwhile?

If you have a large amount of money and feel that your current bank is not looking after your needs, then perhaps it is time to look at the option of private banking. If you are wealthy and unsure about what private banking involves, then this guide can help you to understand more about the world of private banking and whether or not it is worthwhile for you.

What is private banking?

Although private banking used to refer to an extremely personalised, almost family like relationship with a bank, this is becoming rarer and rarer and is usually reserved for the super wealthy. Private banking these days is more along the lines of investment management, and offers you expert advice and services that your regular high street bank could not.

Who is eligible for private banking?

Although there is no set limit for the amount of money you need to use private banking, it really isn’t worthwhile for the everyday customer. Unless you have at least £50,000 in disposable money for spending and investment then private banking is probably not for you. However, the actual amount you need to be eligible for private banking really depends on the services you want and the company you want to use.

What services are offered?

As well as the financial products that you can get from your normal bank, private banking can offer you expert advice on investments and financial products. They can also help you to set up offshore accounts or easily transfer money internationally. The benefits of private banking are that you usually have a bank manager assigned to you that you can take to and get advise from when needed. Most transactions can be done over the phone, and there is no need to queue in a branch in order to transfer money or pay bills.

Cost of private banking

Obviously, private banking is not something you can get for free. If you are using the banking company for a variety of financial products or for investing large amounts of money, then the costs of the advice and assistance they give you might be lower. However, if you use private banking as simply a means for advice and basic banking, then the fees are likely to be a lot more. Basically, the more money you deposit and the more products you buy from the bank, the cheaper the private banking services will be.

Is it really private?

Perhaps the biggest advantage of private banking is that all of your affairs remain private between you and your designated bank manager. Other members of staff usually have to sign a non-disclosure agreement in order to work for the company. Although private banks are sometimes criticised for their lack of transparency, there are many genuine reasons why you might want your financial affairs kept private, not least for security reasons. Although private banking is generally for those with a lot of money, if you think you need a higher level of service than your current bank you should look at private banking options.