Private Banking

Private banking clients usually need to hold a substantial amount of money with the bank, with minimum thresholds that vary widely between institutions. In return, they receive a dedicated relationship manager and tailored services.

Services typically include investment management, tax and estate planning, specialised lending such as loans secured against investment portfolios or high-value property, foreign exchange, trust services and help with planning how wealth will pass to the next generation. Some private banks also arrange services such as art financing or philanthropy advice.

For example, a business owner who has just sold their company might use a private bank to manage the proceeds, plan for taxes and set up arrangements for their children's future.

Private banking is offered by specialist private banks and by private banking divisions of large universal banks. Fees may be charged as a percentage of assets managed, for specific services or through the products clients buy. As with any investment service, it is worth understanding exactly how the bank is paid.