At what point does it make sense to sign up for private banking? I've been happy with our credit union for day to day stuff but we don't keep a ton of cash around (most of our money is in a brokerage account (ETFs)). Is private banking just for folks that want to have a lot of cash around but not have it in an easy to use account?
If you have to ask, the answer is you don't have enough! :)
Seriously though, just wander into any big ass bank(Chase, BOA, etc) and ask them. They have multiple tiers of private banking, depending on your wealth level. Generally the bottom tiers start around $100k and go from there. To get into the fancy tiers you generally need $1M or more of bank assets. To get into family offices, you generally need $100M or so. Though shared family offices are sometimes available at the low 30-50M range.
Just be very careful of fees. Generally the larger the private client services, the higher the fees.
Private banking basically means high net worth wealth management. Includes banking, investments, lending, etc.
When you are managing a $500k-1M+ liquid net worth.
I think Chase starts “Private Client” at $250 or $300k. (Don’t use Chase, however.)
It might in some cases be more trouble than it is worth, if you are right around the threshold. A “normal” retail checking account and a brokerage account at another institution with the ability to transfer between them is probably sufficient for most. If you need loans or mortgages or other stuff, it might be worth the hassle (and phone calls).
Private client isn’t private bank. They name is like that so you think it is though. :) private banking services start around $10 to $15M with higher tiers as you go.
(Not trying to diminish private client services. But they’re night and day different services.)
> start around $10 to $15M
That sounds high to me. Maybe American banks? The smaller Swiss banks will start taking your calls at about $2m.
Maybe. All the retail banks I know don’t start true private banking until there. For example, here is an article about JPM requiring 10 back in 2016 (it’s higher now): https://www.wsj.com/articles/at-j-p-morgan-9-million-in-asse...
The non retail banks that have a good reputation are even higher.
They don’t outwardly advertise their minimums because “it depends.” For example if you’re an up and comer in your field where it seems like you’re LIKELY to one day hit the mins, they’ll start the relationship early.
What’s the difference?
Private banking is basically the bank providing family office services. They generally give you one contact person, that makes your money annoyances non-annoyances. You need a loan for something, they just go sweet talk everyone involved to make the loan happen for you.
They also invite you to all the bank's private events, so you can schmooze with other high net worth people. Banks are always sponsoring fancy events everywhere, and private banking clients generally get free invites.
When you need the specialized services they offer, e.g. Lombard loans, unique mortgage products.