The answer to “what banks do rich people use?” is: it depends.
There’s a wide range of banks that wealthy individuals can choose from. And, which banks they choose to open accounts with will depend on a wide range of variables.
This is true whether you’re looking at high-net-worth private banking in a domestic market or in an offshore banking jurisdiction.
In this article, we’re going to share the most popular places where rich people bank and the important factors that help them decide which banks are best.
Feel free to use the table of contents to jump ahead to any sections most relevant to you.
Table of Contents
- Banking for the Rich 101
- Which Banks Cater to High-Net-Worth Individuals?
- Frequently Asked Questions
- Ready to Open a Private Bank Account?
Banking for the Rich 101
As mentioned, when it comes to private banking, there are a wide range of variables that go into choosing a jurisdiction. So, there isn’t a single answer to the question what banks do rich people use.
With this in mind, let’s take a look at some of the most important considerations that go into choosing where to bank.
Considerations for Choosing the Right Banks:
- Ability to open and maintain bank accounts
- Required deposit to open accounts
- Cost of banking and account maintenance
- Bank acceptance of relevant structures (trusts, foundations, etc.)
- Competence and capabilities of the bank employees
- Sophistication of the prospective relationship manager
- Availability of suitable investment products
- Tax implications of maintaining investments in the jurisdiction
- Bank considerations (liquidity, solvency, correspondents)
- Jurisdiction considerations (political, fiscal, economic, blacklists)
Obviously, these are just a few of the considerations that should go into choosing a jurisdiction. We share many more with members of GlobalBanks IQ and GlobalBanks Insider in our dedicated private banking report.
- Private Banking Secrets: Make Money Like the Super Rich
This report is immediately available to you when you join either GlobalBanks IQ or GlobalBanks Insider.
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Which Banks Cater to High-Net-Worth Individuals?
There are a wide range of private banks that cater to high-net-worth individuals. This is true whether you are looking to bank in the US, Switzerland, Singapore, or anywhere in between.
That said, finding the right bank often requires choosing the right banking jurisdiction. With this in mind, we’ve outlined some of the most common private banking jurisdictions below.
In short, while we can’t provide a specific answer to what banks do rich people use (because each wealthy person is different), we can say that many of them choose to bank in these banking jurisdictions.
Popular Private Banking Jurisdictions
*Presented in alphabetical order
- Isle of Man
- Cook Islands
- United Arab Emirates
- United Kingdom
- United States
What Do These Jurisdictions Have in Common?
There are several variables that set the jurisdictions apart from other banking hubs, including the presence of sophisticated banks and bankers that specifically cater to high-net-worth clients.
In many cases, these jurisdictions also have an established a history of private banking and wealth management (e.g. Liechtenstein and Switzerland). In other instances, they have rapidly expanded their capabilities in recent years to serve private banking and wealth management clients (e.g. Singapore and the United Arab Emirates).
Frequently Asked Questions
How Much Money Do I Need to Open a Private Bank Account?
The amount of money required to open a private bank account will depend on the jurisdiction, the bank, and the customer profile.
In certain instances, a private bank account can be opened for as little as USD 100,000. However, other banks may require an initial deposit of USD 3,000,000 to 5,000,000.
That said, many private banks are open to negotiating deposit requirements. Importantly, you need to know which bank to contact and how to approach them correctly based on your objectives and client profile.
Which Jurisdictions Offer Private Banking?
Most jurisdictions offer some form of private banking. However, the quality and service that you can expect in different jurisdictions will vary widely.
With this in mind, most wealthy individuals choose to bank in established private banking jurisdictions. Established private banking jurisditcions typically include Switzerland, Liechtenstein, Luxembourg, Monaco, Singapore, the Cayman Islands, the Bahamas, the United States, the United Kingdom, and the United Arab Emirates.
That said, there are other private banking jurisditcions to consider as well, including Andorra, Austria, Guernsey, Jersey, the Isle of Man, and more.
Ready to Open a Private Bank Account?
If you would like assistance navigating your private banking options at home or abroad, we can help.
You can access GlobalBanks IQ, our international banking intelligence platform, in just a few clicks. Unlock our bank database, individual bank profiles, account opening strategies and reports, banker scripts, and more.
But, if you want a 100% personalized account opening service that taps into our team’s expertise and provides direct banker introductions, you can get started with GlobalBanks Insider.
Of course, if you have any questions, please contact us directly.