When it comes to banking for the ultra-wealthy, there are a few key banks that cater specifically to high net worth individuals. The main requirements to be considered a wealthy banking client typically include having at least $1 million in liquid assets or a net worth of over $5 million. For these elite clients, banks offer exclusive services and perks not available to regular customers.
What Services Do Banks for the Rich Offer?
Banks for the ultra-wealthy provide highly personalized service, customized solutions, and exclusivity. Some of the key services offered include:
- Private banking – Dedicated relationship managers provide tailored advice and facilitate complex services like wealth management, investment banking, legacy planning, philanthropy, and more.
- Investment management – Access to exclusive investment opportunities, hedge funds, private equity, and real estate investments.
- Lending & credit – Preferred terms and higher loan amounts. Many offer loans collateralized by art, jets, yachts, and other assets.
- Trust services – Customized trust accounts and estate planning services to preserve and pass on wealth.
- Concierge services – Assistance with travel, event booking, art procurement, philanthropy, and other specialized requests.
- Exclusive events – Invitations to private concerts, dinners, talks, and networking events.
On top of personalized service, wealthy clients enjoy premium perks like special rates and fees, airport lounge access, and more. Banks compete to attract and retain ultra-high net worth clients.
What Are the Top Banks for Wealthy Individuals?
Here are some of the top banks used by the rich and famous:
JP Morgan Private Bank
With almost 160 years of experience serving wealthy clients, JPMorgan Chase is one of the top picks for private banking. They require a minimum of $10 million in investable assets for private bank services. JPMorgan offers both banking and comprehensive investment management under one roof. Personal bankers and advisors provide customized solutions. They offer lending, trusts, estate planning, philanthropic advice, and concierge services.
UBS Global Wealth Management
UBS provides private banking and wealth management services to high net worth individuals across the globe. With a minimum of $1 million in investable assets, clients gain access to services like investment management, retirement planning, banking and lending, trusts, and institutional advice. UBS offers exclusive access to events, art fairs, and insight from its Chief Investment Office.
Northern Trust
Northern Trust caters to the ultra-wealthy, with a minimum required net worth of $500 million for individuals. They offer private banking, investment management, trusts, foundation management, custody services, financial planning, and more. Northern Trust prides itself on discretion and privacy for its elite clients.
Citi Private Bank
Citi Private Bank clients must have at least $25 million in investable assets. The bank offers personalized wealth management, banking, lending, investment opportunities, and legacy planning services. Experts provide objective advice and exclusive access to insights, events, and partnerships to help clients grow and preserve wealth.
Bessemer Trust
Bessemer Trust is one of the oldest wealth management firms, serving ultra-high net worth families since 1907. Multi-generational account management and a family office approach differentiate their services. Bessemer requires a minimum of $10 million in investable assets. They offer comprehensive investment management and wealth planning for estates and foundations.
What Do Ultra Wealthy Clients Look for in a Private Bank?
When choosing a private bank, the richest clients prioritize:
- Exclusivity – The top banks limit their clientele to preserve privacy and exclusivity. Wealthy clients want discreet, elite treatment.
- Reputation – A long track record and sterling reputation provide trust in the bank’s capabilities and expertise.
- Breadth of services – The ability to consolidate banking, investments, trusts, lending, and wealth planning streamlines their financial lives.
- Customization – Banks tailored advice, asset management, and concierge services to their unique needs and goals.
- Connections – Access to exclusive networks and opportunities for investments, philanthropy, and leisure.
- Family heritage – For generations of wealth, the ability to preserve and pass on legacy and values.
Discretion, privacy, and white-glove service are expected by ultra-high net worth individuals when choosing a private bank.
How Do You Qualify for Private Banking?
Here are the typical requirements to qualify for elite private banking services:
- Net worth of $5 million to $50 million+
- Investable assets of $1 million to $25 million+
- Minimums vary by bank and service level
- Typically the higher the wealth, the more exclusivity and customization offered
Prospective clients may need to provide:
- Tax returns
- Account statements
- Proof of assets
- Professional references
Requirements tend to be higher for ultra-elite banks like Northern Trust catering to billionaires and 100 millionaires.
How Much Do Private Banks Charge?
Private banks offer exclusive services and highly tailored care, so fees are higher compared to retail banks. Common fees include:
- Management fees – For investment accounts, ranges from 0.50% – 1.00%+ of assets under management. The more assets, the lower the fees.
- Transaction fees – Charges per trade or account transactions/transfers. Waived above certain thresholds.
- Account fees – Account maintenance or membership fees, anywhere from $100 to $300k+ per year.
- Lending fees – Origination fees for loans, generally 0.25-1% of the loan amount.
Clients may pay separately for outside services like tax/legal advice. High fees provide highly personalized service and access for wealthy clients. Many see it as a worthwhile cost to protect and grow their wealth.
Conclusion
Private banking caters specifically to the needs of ultra-high net worth individuals. To qualify, you typically need at least $1 million in investable assets or $5 million+ in net worth. Top banks like JP Morgan, UBS, and Northern Trust offer exclusive services like private banking, investment management, trusts, lending, and concierge services. Fees are higher but wealthy clients value privacy, customization, and connections. Choosing a private bank comes down to reputation, exclusivity, expertise, and ability to consolidate financial services.