Guide To Private Banking In Singapore: Here's Just how much You have to Earn And have To Open An Account
If you have amassed a sizeable quantity of wealth, the challenge includes understanding how best to manage it. There are tax considerations, protecting it for the future generations, and investing it across various time horizons to optimise returns.
For those people who are fortunate enough to have a lot of money to worry about, private banking is an avenue you are able to use, with personalised service, access to different financial products, as well as preferential rates for loans and other perks.
So, should you ever desired to know what private banking is all about, and just how much you’ll need to open a merchant account, continue reading.
What Is Private Banking?
Private banking is a term to explain financial services that banks provide to high-net-worth individuals.
Some may use priority banking interchangeably with private banking. While both of them are somewhat similar, there are some key differences.
Priority banking concentrates at affluent customers who can manage to deposit and spend a large sum of money having a bank. To acquire an investment, the financial institution will accord VIP status for these customers, such as providing them with preferential rates on savings or loans, priority queues or special branches, in addition to a personal banker.
On the other hand, private banking is a gain levels from priority banking. Besides experiencing the privileges of priority banking clients, private banking clients will are in position to take advantage of a wider range of wealth management services, for example investments, portfolio management and estate planning.
To protect the privacy of the dealings and transactions, private banking clients will also be assigned a passionate relationship manager or private banker to deal with their enquiries and transactions. While their assistance can be called upon for payment of bills and getting a new mortgage, clients may also depend on their advice on personalised investment strategies and asset management.
What Would be the Minimum Requirements To become a Private Banking Client?
Another difference between priority and private banking is the asset under management (AUM). For private banking clients, a minimum AUM of $1 million is needed to start a private banking relationship. This can be a long way away from the lower threshold for priority banking, for example Citibank Priority Banking's minimum amount of $70,000 of AUM.
Below are some of the minimum asset under management necessary to join the bank's respective private banking circle:
|DBS||DBS Treasures Private Client||$1.5 million|
|DBS||DBS Private Bank||$5 million|
|UOB||UOB Privilege Reserve||$2 Million|
|UOB||UOB Private Bank||$5 Million|
|OCBC||OCBC Premier Private Client||$1 Million|
|Citibank||Citigold Private Client||$1.5 Million|
|HSBC||HSBC Private Bank||USD$5 Million|
|Standard Chartered||Priority Private||$1.5 Million|
Read Also: 5 Things You Need To understand about The Newly-Launched Comprehensive Financial Planning Service By MoneyOwl, Which Combines Technology With Human Wisdom
Unique Benefits And Services Offered By Private Banking
As mentioned earlier, besides using a dedicated relationship manager or private banker to serve clients for normal banking services, private banking clients can also access advice from specialists on tax, legal and other financial matters.
Private banking also provides you with use of special investment products and services only available to them, such as exclusive hedge funds or private equity partnerships. They are along with enjoying preferential offerings and pricing on interest rates, loans, credit fees and overdraft charges.
Banks could also provide other personalised privileges and services for his or her private banking clients as well.
For instance, DBS Treasures Private Client provides a specialised network for his or her clients that permit them to connect with partners and opportunities worldwide, while UOB Private Banking clients can make use of their dedicated medical concierge, as well as a travel concierge that gives clients with exclusive cashback on hotels, cruises along with other luxury products. Banks such as OCBC and HSBC provide their customers with bespoke wealth management solutions that really help their clients in portfolio financing and legacy planning.
With every other investments in the market, there is no one-size-fits-all model with regards to choosing a private bank.
If you will be permitted to be considered a private banking client eventually, perhaps one consideration could be when the perks are worth parking a large chunk of your funds in a single institution. For all those whose answer is a convincing “Yes!”, welcome to the world of private banking and all the perks it arrives with.