Private banking: Pros and Cons
                     PRIVATE BANKING: 
PROS AND CONS
What Is Private Banking?
Private banking refers to all the personalized 
financial services a bank reserves just for its 
high-net-worth (HNW) clients. 
These “services” include everything from a 
dedicated account manager and preferred 
interest rates on accounts to wealth 
management services and estate planning.
Source: www.thebalance.com
Range of services available
• A dedicated client support team
• Personalized banking services
• Preferred interest rates on bank accounts and 
loans
• Higher limits on online transfers, payments, 
and ATM withdrawals
• Pricing discounts on foreign currency 
purchases
• Special financing for homes, commercial real 
estate, art, aircrafts, sports, and events
• Customized credit solutions
• Investment management
Source: www.thebalance.com
PROS OF PRIVATE BANKING
A dedicated representative
The biggest advantage of private banking is 
having a dedicated person or a team of people 
who already knows your circumstances. Private 
banking can make it easier to deposit checks, 
initiate wire transfers, order checks and more. 
Source: www.bankrate.com
Ability to connect with a network of specialists
The private banker is the quarterback who 
connects you with others on the team, such as a 
tax attorney or a trust and estate adviser, Foy 
says. 
Having the ability to have your private banker or 
wealth manager set up meetings with specialists 
can be a time-saving perk.
Source: www.bankrate.com
All your financial services under one roof
With private banking, your bank becomes a “one 
stop shop” for all your financial needs. And if 
you already have a team of financial 
professionals you know and trust, your bank will 
work with them, too.
Source: www.thebalance.com
Special perks and benefits
As a private banking client, you’ll enjoy priority 
customer service, higher interest rates on 
deposits, lower interest rates on loans, higher 
transfer limits, custom lending solutions, and 
more.
Source: www.thebalance.com
CONS OF PRIVATE BANKING
You may be losing out on interest
If you have to commit a sizable amount of 
money to an account with a low annual 
percentage yield, it might make sense to think 
twice about private banking. 
Source: www.thebalance.com
High management fees
It’s smart to compare the fees for having your 
money managed at a wealth management firm 
with other alternatives. Management fees are 
typically around 1 percent of investments, 
usually charged annually
Source: www.thebalance.com
Private bankers come and go
Turnover can be a factor as well. If your private 
banker or wealth manager leaves the financial 
institution, you’ll have to choose whether to stay 
with the firm or move with your representative.
Source: www.thebalance.com