Private banking, in essence, is the bank service of choice for those who don’t have a lot of money to deposit with their main bank. Private banking is basically banking, securities and other financial products offered by private companies and banks, mainly to the wealthy or high-net-worth people with large sums of wealth or substantial assets. They are typically used by the wealthiest segment of society as their personal bank and can be found in most major cities.
When it comes to private banking services, the two most common types are insured accounts and bank savings accounts. A savings account will offer a higher interest rate but is not as convenient to open up and manage as an insured account – the latter of which is more popular among the wealthy segment of society.
While both have many advantages, it’s usually recommended that you go for the insured savings account, as it’s a financial product backed by your hard-earned assets. In order to avail the benefits of a private banking services, however, you need to have at least an average level of credit history.
As far as private banking goes, you can choose from a wide range of accounts, ranging from savings and investment accounts to credit cards and loans. Depending on how much you have to deposit with your main bank, you’ll be asked for a few personal information: name, address, date of birth and social security number. You can also be asked to show proof of your employment or income, such as pay slips and bank statements.
Once you have the required information and have verified your employment, it’s time to open up a bank account. Depending on your local regulations, you can either open a bank account from scratch at your local bank or get a secured bank account – these are the easiest options and allow you to open an account without having to actually deposit any money yourself. With a secured bank account, you’re basically signing a contract with the bank, whereby they’ll guarantee your deposit in case you fail to pay the monthly fee.
If you want to open a bank account from scratch, you need to make sure that you have all the necessary documents ready to submit before you go to the bank to deposit money. Some banks will require you to bring proof of identification (such as a driver’s license or a social security card) and proof of employment, and some may require a second form of identification – like a paycheck stub or a bank statement – to prove your employment as well, if it’s not already on record in the bank’s database.
Financial products are available online, but online services are generally a lot cheaper than conventional services like your local bank. Online services are usually more convenient and secure and usually offer competitive rates, as you can go straight from one website to another rather than having to use numerous branches of the same bank – something that can be cumbersome in local banks.
When choosing the type of savings account that you should go for, you will want to carefully consider your own financial needs. Secured accounts often come with higher interest rates, while uninsured accounts are ideal if you wish to access your money in a low-risk fashion. If you don’t require regular access to a lot of money or a high amount of funds, go for an uninsured account.
The most important thing to remember is that there’s no need to rush into signing up for a new account. The process can take a few weeks, so try to be patient and take your time in making your decision. Private banking can be a great way to save money, build up your wealth and enjoy good credit score, and be able to shop at good banks.
Opening up a savings account is not too difficult, though the main challenge is to make sure you know exactly what you are getting into before you sign up. Take your time and do your research; there’s lots of information on the internet about private banking. So many banks have their own websites, so check them out first to get an idea about what the terms and conditions are, as well as the deposit amount and the rules and regulations that apply to your state.
Do ask a friend or a family member who is a client of a local bank for some recommendations. Sometimes you may find that someone you know already has a bank account, which is easier to open for you!