(Thanks to DBrown for compiling this information~The Dinar Recaps Team)
Perks we may expect post RV from The Wealth Management side of Banks
DBrown: Ok did some googling--
At The Private Bank, we treat credit as a strategic resource that can be used for a variety of goals, such as portfolio diversification, risk management, asset protection and special growth opportunities.
In addition to traditional lending solutions, your private banker can work to personalize customized lending solutions available exclusively to our private banking clients, including:
Loans and lines against concentrated and restricted stock
Residential financing: lot, construction, permanent
Unsecured lines of credit
Commercial real estate lending for apartments, offices and industrial property
Specialty financing such as aircrafts and yachts
Life insurance premium financing
Interest rate management through caps, collars and swaps
Read More Link on Right
The Private Bank also offers you a number of premium deposit services to provide convenience, flexibility and control. All of our deposit accounts come with:
No monthly service fees
The Private Bank debit card
Free Wells Fargo checks
Increased ATM withdrawal limits
The Wells Fargo Private Banking PMA® Package
Leverage the power of Wells Fargo
Your relationship manager and private banker work with partners across Wells Fargo to bring you additional options for your private banking needs. The options are integrated with the rest of your relationship and the specialists become an essential part of your private banking team.
Residential real estate financing – your private banker will work with a private mortgage banker to help align your debt structure with your goals, while preserving capital for other investments.
Foreign exchange services, including currency exchange, international funds transfer and currency risk management.
Interest rate management, including strategies to minimize the interest rate fluctuation risk of floating rate loans.
Commercial Electronic Office® (CEO) Portal provides online treasury management services and allows you to manage your finances with greater efficiency and ease, through a single-point of access to more than 50 applications. It is a simple way to manage accounts online without the complexities of traditional information reporting services. Using state-of-the-art security, the CEO Portal provides a comprehensive suite of solutions all in one place.
Perks of private banking
Private banking perks begin with concierge-style service for banking chores like opening CD accounts or managing checking accounts.
Scott Farber, senior vice president and wealth strategist with U.S. Trust, a wealth planning division of Charlotte, N.C.-based Bank of America, compares the private banking experience to eating out at a five-star restaurant.
"You expect a higher level of service," he says.
Higher rates on deposit products like CDs and approval for that hard-to-get jumbo mortgage refinance become much easier to get, Farber says.
Baughman says that when he worked at BB&T, "everything was negotiable" for private banking customers, including the bank's stated fees in terms of closing costs for mortgages, closing costs for home equity lines or retail loans.
"There were interest rates on CDs, checking accounts, depository accounts -- those were all negotiable, and you had a wider range of negotiating power to go out and capture those folks," Baughman says. "If you could make a case for it, the sky was the limit."
As for who exactly the banks would target, "different banks drew the line at different places," Baughman says. Some private banking divisions target what Baughman calls the "mass-affluent market" with investable assets of $250,000 to $1.5 million, either held at the bank itself or at other institutions.
Other banks set a higher bar for entry; U.S. Trust looks for clients in the range of $3 million to $10 million, Farber says.
What does the bank get in exchange for offering private banking perks?
For one thing, the promise of a large pool of cheap money in the form of wealthy clients' sizable checking account balances, on which they often pay little to no interest.
Then, there's the money the bank makes off the interest charged on the larger mortgage and business loans taken out by wealthy clients. And don't forget about the real prize: a percentage of assets under management, which can add up quickly for high-net-worth clients.
However, private banking also comes with some drawbacks, Baughman says.
"There's a lot of turnover in those roles at banks," Baughman says. "You may build a relationship with Bobby, and then he's gone, and then you get Suzy who comes in and who knows what your experience is going to be like? Banks aren't that good at managing that transition, in my experience."
Also, Baughman says, banks may end up being a jack of all trades, but a master of none.
"Banks can't do everything great," he says. "They're not experts in everything, so the level of expertise in some areas is going to be less than if you went out and found a specialist in that area."
Finally, remember that like many other types of financial institutions, depending on how they're paid, a private banker ultimately is paid by the bank, not you.
"Their No. 1 responsibility is to their employer rather than the customer. Buyer beware in all instances when dealing with that," Baughman says. "In the back of the mind -- and I sat in that chair -- you're also thinking, 'What fee is generated from this?'"
One of the nation's biggest financial services firms, Chase currently has 38 Chicago-area bank branches that have carved out separate areas for clients with investable assets of $500,000 to $5 million. Those better-heeled customers receive speedier service from bankers and investment experts in the privacy and comfort of what are called Chase Private Client offices.
Besides the nicer digs, Chase private client customers also get a dedicated team that includes a private banker and an investment professional, a 24/7 hotline for customer service, better rates on savings and checking accounts, and up to five waived fees at non-Chase ATMs a month.
Their perks also include free checks, overdraft transfers, stop payments and domestic wires. Finally, the Chase customers also get access to investment products and services from sister company JPMorgan, including MorganMarkets, the firm's research and online market data site.
Nick Hofer is not your typical banker.
He recently dropped off a bundle of foreign currency and travelers checks for clients on Beacon Hill who were preparing for a family vacation to Africa. He drove to the Chestnut Hill home of a couple to help them and their children set up new accounts after moving to Massachusetts from California. And earlier this year, he tutored a Wellesley client’s fourth-grade daughter in math.
Hofer works for Boston Private Bank & Trust, a bank that caters largely to the wealthy by offering individual attention, personal service, and amenities such as invitations to exclusive lectures and receptions. As low interest rates and rising regulation make it harder for banks to make money from run-of-the-mill products like basic checking accounts, many financial institutions have tried to expand “private banking” units that serve millionaires and can generate significant profits by helping clients manage their fortunes.
Once clients open accounts at private banks, they are usually referred to a team of professionals that can help manage their investments, loans, and estate planning, generating much more in fees and revenues than a simple certificate of deposit or typical home equity loan.
Private banks generally attract customers by focusing on personal service. Instead of telling customers to line up for a teller or phone a call center, private banks offer clients the name, e-mail, and direct phone number of a personal banker assigned to cater to their financial needs — even on nights and weekends in some cases.
At Boston Private Bank, Hofer has just 100 customers — giving him a chance to get to know each of them well.
These perks include private jet and luxury travel, lavish gourmet dinners, lucrative golf outings, prime seats at charity events, luxury hotels, sports event tickets, private yacht access/usage, donations to your favorite charities, etc.
What are the perks for the affluent?
The are as different as the bank and marketers can come up with. I've seen any and all of the following offered:
Wine and cheese; chocolate chip cookies; separate lounges; after hours appointments; good products and good service in a private setting; concierge-style service for banking chores; special lounges in airports; or personalized service, you can always interact with your assigned financial adviser (you can also just walk into the bank and use any of the people there).
Here are even more examples:
A 24x7 service phone line so that you can do things like a wire transfer, get new checks and etc after bank hours.
Other perks can be things such as the below
Free wire transfers.
Use of out of network ATMs without fees
One consistent contact for any need (your adviser).
Adviser recommendations on investments to make
No foreign exchange fees for debit card usage outside the U.S.
No charges for domestic and international wire transfers, notary services, personal checks, traveler's checks, stop payments, online overnight checks, and more
Higher daily withdrawal limits on debit cards
A special debit card that can be linked to your checking account and given to children, home staff or others, with specific monthly spending and withdrawal limits that are set by you for each cardholder
Specialized lending products
Preferred mortgage benefits
Expanded credit guidelines
Access to a greater variety of credit cards.
Chuck 2007 likes HSBC Premier. His comments on the Flyer Talk forum included:
"I have been a HSBC Premier customer for just under 2 years and overall have been quite satisfied. Here are the positives as I see them:
1. Got a Kindle for signing up and depositing $50K
2. Opened a brokerage account and was able to buy US corporate bonds at a lower price than I could at either Schwab or TD Ameritrade
3. I save transaction fees every month since I do regular transfers to a foreign bank account
4. While traveling abroad, I am able to use the HSBC Premier Credit card with no foreign exchange charges
5. I opened a business account recently and have been able to do international wire transfers for a fee of $15 (compared to $30-$50 at other banks)
6. The Rewards program is decent with a $400 ticket available for 24000 points (approx. 1.67 cents per dollar spent). Of course, you can get value of up to 2 cents per dollar spent with the Capital One Venture card - but I was OK with this.
Overall, I find it convenient to do business with a global bank that is present internationally in most (if not all) of the countries that I travel to and do business in."
How do you impress someone who can afford almost anything?
Last March, about 20 wealthy guests gathered at Au Jardin Les Amis, an award-winning French restaurant in Singapore's Botanic Gardens to meet Baron Eric de Rothschild and representatives of the Zurich-based private bank that bears his name.
Over a five-course dinner of smoked lobster and Wagyu striploin steak accompanied by fine wines from Rothschild's vineyards in Bordeaux, potential clients discussed investment strategies.
In the battle for private banking clients, the Rothschild family brand is a powerful weapon.
The country’s largest banks offer their most attractive pricing and perks to customers who have tens of thousands of dollars in linked accounts: checking, savings and investment accounts, loans, and credit cards. Benefits typically include access to enhanced customer service (sometimes with a dedicated banker or team), breaks on fees, higher interest rates on bank accounts, and lower rates on loans.
To get the best benefits at the biggest banks, you’ll need to tuck at least $25,000 into relationship accounts. In return, you get priority customer service, often with a dedicated phone number, as well as the potential to earn higher rates on deposits and bigger rewards on credit and checking accounts. You also get breaks on checking overdraft fees and charges for account services such as money orders, cashier’s checks and wire transfers.
Hands-on investors may appreciate the commission-free trades in self-directed investing accounts (up to a monthly or annual limit) that Bank of America provides to its Platinum Privileges clients and Wells Fargo to its PMA customers. You may also get a break when you take out a mortgage or other loan. For example, a member of Citibank’s relationship service, Citigold, can get up to $2,500 off closing costs or 0.375% off the interest rate on a first mortgage, depending on the size of the client’s total Citigold balance.
The largest banks also have private divisions that offer exclusive benefits and wealth-management services to the very well heeled. For instance, Chase customers with total assets of about $500,000 to $5 million who are willing to keep at least $250,000 with Chase are eligible for Chase Private Client, which includes access to a team headed by a dedicated banker and a J.P. Morgan adviser. (Chase expects to expand Private Client to all of the bank’s U.S. markets by the end of 2013.)
Citibank provides its high-level customers with access to events, says Venu Krishnamurthy, president of Citigold Wealth Management. Those customers may include members of the Citigold program, which is aimed at clients with about $100,000 to a few million dollars in assets, as well as the wealthiest customers who use Citi’s private banking service. Recent benefits included tickets to the Art Basel art show, in Miami Beach, Fla., and a discussion of economic trends with former OMB director Peter Orszag, now a vice-chairman of Citigroup.
But you don’t always need to come up with big bucks to qualify for perks. PNC Bank, for instance, offers a variety of packages with manageable minimum-balance thresholds. To avoid the $10 monthly fee for its relationship rewards Virtual Wallet With Performance Spend account, you must have a total of $1,500 in checking and savings accounts; make a $2,000 monthly direct deposit; or have a combined balance of $10,000 in several accounts, including certificates of deposit and mortgages. Perks include free check orders and up to $8 in monthly reimbursement of ATM surcharges by other institutions.
another common relationship perk: free non-network ATMs. Among Chase’s checking packages, for example, only Premier Platinum, which yields 0.01% on checking and requires a $75,000 minimum balance among qualifying accounts, offers customers unlimited, no-fee ATM transactions; it does not, however, reimburse fees that ATM owners charge you. For comparison, online Ally Bank requires no minimum deposit on its free Interest Checking account; pays 0.4% or 0.75% interest, depending on the balance; levies no fees for ATM transactions; and reimburses other banks’ ATM fees.
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