Personal Finance | 07 March 2024

What are the benefits of private banking?

Private banking enables high-net-worth individuals to manage their finances. Explore the main benefits of private banking services in this guide.

WHAT are private banking accounts?

Private bank accounts are an exclusive type of current or savings account available only to clients of a private bank. Generally, this means people with a certain amount of wealth – known as high-net-worth individuals. 

One of the main private bank account benefits is the service you are given as a client. You could get a dedicated private banker to advise on your everyday banking needs. From managing your current account to applying for mortgages and credit cards. 

A private bank account is part of a suite of services delivered under the umbrella of private banking. Coutts offers multiple services in one convenient place, with a dedicated point of contact.  

 

WHAT are the benefits of a private bank?

A private bank could encompass bank accounts and borrowing, but also wealth management, investments and financial planning. The main benefit of using a private bank over a high-street establishment is the expertise you could access as a client, and the exclusive touches you’d expect from a bespoke service. 

Other potential benefits of using a private bank include: 

  • Private banker access

    You may get a dedicated private banker as part of the service. Private bankers are experts in their field. They can use their deep experience to understand your financial situation and advise you in alignment with your goals. 

  • Personal banking products

    Private current and savings accounts combine the fundamentals of personal banking with exclusive features and sophisticated touches. Your Private banker could advise on your day-to-day banking and saving. And you might enjoy exclusive chequebooks and debit cards. The likes of borrowing and protection solutions may also be available.

  • wealth management services

    When you become a client of a private bank, you might have wealth and assets you want to protect and grow. Private bankers are highly skilled in areas such as tax, trusts and estate planning. Working closely with private bankers, they could provide a roadmap to help you achieve your long-term goals and navigate complex areas.

  • Estate planning support

    Estate planning could help you to pass on as much of your assets as possible to your family or other beneficiaries in a tax-efficient way. Private bankers could create an estate plan, including factors such as property, investments, pensions and life insurance. 

  • tax planning advice

    Tax planning is focused on structuring your finances to ensure they’re as efficient as they can be. For example, if you’re combining different sources of income, or you run your own business. Once again, a private banker could consult on the best way to do this, making recommendations on complex tax structuring. 

  • Mortgages - Bespoke and complex lending

    One of the benefits of private banking is that private bankers are aware of the volatility of cash flow. A private banker can advise on bespoke lending, or look to the monetisation of existing assets such as investment portfolios or even luxury cars.

    Learn more about Coutts wealth management services

     

The value of investments, and the income from them, can fall as well as rise, and you may not get back what you put in. Past performance should not be seen as an indication of future performance. You should continue to hold cash for your short-term needs.

how to know if private banking is right for you

Private banking is for high-net-worth individuals only. To start banking with a private bank, you must first meet its eligibility criteria. Some of this may be based on how much you’re looking to invest or borrow..

The consumer banking services provided by high-street banks and building societies aren’t typically designed for people holding serious wealth and assets. They create current accounts, mortgages and loans for customers on either side of the average UK salary, currently £38,600 according to the Office for National Statistics. 

So, as a customer of a regular bank, you won’t be provided with a private banker to advise on your day-to-day finances. 

And you can’t always access wealth management services from a high-street bank. So, there may be no private banker to advise on investments, tax planning and estate planning either.

what are the advantages of becoming a coutts client?

As a client of Coutts, you can expect so much more than a bank. We consider ourselves an ally to our clients as well as a partner and adviser. With our origins dating to 1692, you can draw on more than 300 years of experience when choosing to bank with us. 

Here are some key benefits of private banking with Coutts: 

  • First-class services

    When you bank with Coutts, you can access first-class everyday banking services such as current accounts and mortgages alongside more specialist financial services. An established investment house, we’re committed to helping you grow your wealth and manage your assets.  You can rely on us wherever you are in the world, 24/7.

  • wealth management

    Our wealth management services centre on the expert, timely advice we offer to clients. We’re committed to understanding your needs – whether you want to protect or grow your assets or are focused on future planning. Our private bankers are qualified and accredited beyond what the industry requires and deeply experienced. Furthermore, they are part of a network that provides access to specialists in the most niche areas of wealth management.

  • specialist planning services

    We don’t always know what’s around the corner. Plan for your future to secure peace of mind for you and your family. Use our financial planning services to write or update your will, consolidate your workplace pensions, or protect your income through life assurance, income protection cover and critical illness insurance.

  • investment services

    Easily invest your money in our Personal Portfolio Funds with Coutts Invest. Our experts closely follow these five funds to help you make the most of your investments. Choose a risk level you’re comfortable with and decide how long you want to invest. 

  • the coutts network

    The Coutts Network is an exceptional community of clients who are helping to shape the future prosperity of the UK and beyond. They are trailblazers and pioneers, disrupters, and challengers. Joining the Coutts network opens access to a host of events and networking opportunities to hear from experts across sectors. 

Fees and Charges may apply for some services mentioned in this article.

 

Become a client

what are the benefits of private banking? - Faqs

  • What is a private bank?

    A private bank is an elite banking service that caters to high-net-worth individuals (HNWIs). It’s usually an arrangement within a bank, rather than a separate bank – typically, a private bank will provide a one-to-to relationship with your own banking adviser. A private bank is what you might use to create efficient investing and borrowing plans – beyond your day-to-day current account – to help with your long term financial growth.

  • Why is it called private banking?

    It is called private banking because you have to apply to become a client of a private bank and show you meet its eligibility criteria. The criteria relate to your wealth and assets. Generally, you must be a high-net-worth individual to use private banking services. 

  • How can private banking help me with estate planning?

    A private bank could help you with estate planning through its wealth management arm. Most private banks offer wealth management alongside day-to-day banking. A dedicated Private Banker could consider your property, pensions and other assets and create an estate plan. 

  • Can I access my private banking account online?

    You can often access your accounts online with a private bank in the same way as you can with a high-street bank, many banks offer online banking as an option. Take the example of Coutts. It may date back over 300 years, but it has an app for managing your accounts online via your smartphone.

     

     

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