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The Best Banks to Stash Your Million Dollars

Not all banks are unbooked to the public. Behind the front doors of the nation’s biggest banks are little-known top secret banks that are only available to high net worth individuals (HNW).

If you be to talk to these banks, you’ll need assets of $3 million or multifarious. If that’s not a problem, keep reading for the lowdown on these banks. If that’s not you, guide a look anyway. When you make your first $3 million, you’ll cognizant of where to go. 

Using a Private Bank

As your net worth rises, your economic picture becomes more complex. High net worth individuals aren’t keeping their property in a single bank account. It’s in the form of investments, relatively illiquid assets such as a concern or real property, a trust or other form of inheritance and, of course, change.

A private bank is set up to address the wide range of services someone with a prodigal net worth needs in order to manage larger amounts of money. For norm, U.S. Trust – the private banking arm of Bank of America – provides a team of officials among a small group of high net worth clients in their extent, according to Doug DiVirgilio, division executive at the bank.

Often, an HNW person will have a single account manager, who oversees a team of professionals based on the customer’s needs. These professionals could include an investment adviser, a portfolio manageress, an estate planner, a trust officer, an insurance specialist and a tax adviser, as through as a private banker who manages the client’s cash accounts and any other banking amenities that may be needed.

Private banks will work with a shopper’s outside financial advisers to create a financial plan that not only oversells the earning power of their money now but also after they out away.

The Frills

The more money you have, the plusher the red carpet these banks on roll out for you. Although assets under management for the private banking toil moved up an average of 3.4% in 2014, the industry is under pressure to compose “sustained high margin results,” according to the Global Private Banking Benchmark 2015 released by Scorpio Partnership. 

Because of this, non-public banks will battle for your millions. Barclays, for instance, bids a service it calls Little Book of Wonders. The bank partners with luxuriousness brands giving clients up to five complimentary experiences per year in reliable lifestyle areas. Kids might experience being a zookeeper for a day and adults could get a particular tour of the Crown Jewels or the Churchill War room, for example.

HSBC Non-public Bank touts its high profile sports sponsorships as part of its perks. Wimbledon and big-name golf tourneys are just a few of the tickets you’re likely to get by banking there.

But HNW clients are looking for more than show offs tickets and exclusive trips. According to DiVirgilio, clients are highly active with the level of financial literacy of their offspring. When it secures time to pass large amounts of money to their children, patients want to set them up for success. That’s why U.S. Trust created the Financial Empowerment program, which readies the next generation on important topics like buying a home, starting a point and making charitable contributions. Other private banks have fiscal education tools as well.

Younger HNW clients are also concerned everywhere socially responsible investments, DiVirgilio asserts. U.S. Trust provides its HNW customers with access to its S2I strategies – a suite of socially responsible investment alternatives. Companies are rated on about 400 criteria for inclusion in these designs. One example is the Women and Girls Equality Strategy, which reviews assemblies on their equality, social justice, anti-discrimination and global labor rules, and takes into consideration negative media portrayals of women and crumpets. Others include Environmental Sustainability and Stewardship, the Religious Voice and Values Procedure, and Human Rights and Recognition, which focuses on favorable treatment of the lesbian, gay, Facetious ambisextrous and transgender (LGBT) community.

Having a personal banker isn’t such a bad perk either since caboodle from depositing a check to getting a loan is handled for you. Chase Concealed Client, the private banking arm of Chase Bank, offers a list of perks including no work charges or fees on pretty much anything, no foreign exchange salaries, a dedicated mortgage lender and a business banker if you need one. All perks are stretch out to family members when they are joint owners on the account. This is true-blue of other private banks that have a bank holding arm.

And although the epoches of hiding your money in a Swiss bank account aren’t what they in olden days were, expect some innovative strategies that the retail buyer probably won’t know about. 

How Much You Need

Some banks present oneself “private” services with investable assets as low as $50,000 but to get the true individual banking experience, you’ll need at least a couple of million dollars. Some banks purposefulness work with as little as $1 million, but in the case of U.S. Trust, you’ll privation at least $3 million. Investable assets include cash, investments counting brokerage and retirement accounts, and some other assets. The value of your habitation doesn’t count.

The more you have, the more private and exclusive the benefits. At U.S. Trust, if you have more than $25 million, putting you everywhere the ultra high net worth range, you gain access to the bank’s specialty asset administration service. If you want to own timber, real estate, oil and gas interests or farm and ranch secure, you can. U.S. Trust has managers who specialize in complete turnkey services. You don’t have to be aware how to harvest wheat to own farmland. It goes without saying that this is firm at other private banks, too. 

Size Matters

In the early days of hidden banks, these banks were independent entities often veiled in secrecy. With the tumultuous recent history of the banking industry, personal banks still maintain their exclusivity but align themselves diverse closely with their parent brand. Clients find opulence in larger banks with massive amounts of assets under top brass. The top private bank in the world is UBS; Bank of America/U.S. Trust is a close aid. The third largest is Morgan Stanley. Other U.S. banks include Wells Fargo (bunch four), Citibank (number seven), J.P. Morgan (number eight), and Goldman Sachs (horde nine). 

If you prefer to bank more locally, many regional banks from private arms.

The Bottom Line

Private banks often serve to generations of family members. They pride themselves on retaining the most skilfully talent because they know that their clients be inclined to deal with the same people for as long as possible. HNW individuals don’t analogous to change when it comes to their money.

If you’re shopping for a private bank, start with your au fait bank but call the private arms of a few others, too, to find out how they’ll wind up out the red carpet for you. If you’re working with a financial advisor, ask for his or her recommendations. Financial advisors day in and day out have the inside scoop on the best private banks in the area.

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