Private Banking

[NY10]

I have been a Chase customer for years and have been approached several times about becoming a Chase Private Client.

I have a meeting tomorrow morning with the bank manager to see if it's worth it. I have a checking and savings account with chase and other investments with a CPA on the outside.

Is anyone else a private client, is it a good deal?

What kind of deals are we talking?
Any perks worth it?

Any other banks with higher interest rates or offers seem better?

In this economy the interest rates are so low that even with high amounts of money it doesn't seem that the interest really is worth all that in the end.

[NemesisX]

What's the fee structure? I'm not a fan of asset-based fees approaching 1% for active management.

[P1]

I don't think it's a matter of "worth" it or not. Any balance above a certain dollar amount and you're a Chase Private Client. There are a bunch of perks, and you'll get a private banker assigned to you etc., a safety deposit box, and a Private Client black (debit) card. Oh, and they will be very nice to you.

Unless you need to transfer money from another bank to become a Private Client, you'll automatically become one.

[John 070]

Honestly I find credit unions to be better, the large ones. We have 2 $5k 1 yr. certificates paying 4.88% with an APY of 5%. Ask your private banker if they can match it. The limit was $5k per member, so my wife has one, I have one.

Would they even match Ally at just a hair under 1% with no fees, no minimums?

I have that "private" status at a regional bank--can you believe I walked in wanting something notarized, and nobody could do it? That's why I think it's a sham. Banking for fees is long gone, and if you let them touch your investments, even worse. They are the flunkies who simply passed a 7 and 66, but really know nothing about investments (no offense there are exceptions).

[AW335TT]

I don't know what you mean by large amount of money but I used to work at Wells Fargo and this lady was getting $6,700 a month in interest, and that was in a regular savings account paying .5%.

[bkM3]

Originally Posted by John 070

Honestly I find credit unions to be better, the large ones. We have 2 $5k 1 yr. certificates paying 4.88% with an APY of 5%. Ask your private banker if they can match it. The limit was $5k per member, so my wife has one, I have one.

Would they even match Ally at just a hair under 1% with no fees, no minimums?

I have that "private" status at a regional bank--can you believe I walked in wanting something notarized, and nobody could do it? That's why I think it's a sham. Banking for fees is long gone, and if you let them touch your investments, even worse. They are the flunkies who simply passed a 7 and 66, but really know nothing about investments (no offense there are exceptions).

Wow 5%? I use ally and was happy with 1%. Iv been looking to move some money into a cd. Which credit union do you belong to? Is it open to the public?

[SunnyD]

Originally Posted by bkM3

Wow 5%? I use ally and was happy with 1%. Iv been looking to move some money into a cd. Which credit union do you belong to? Is it open to the public?

Sure you'll get better rates through a credit union, but they usually either cap the amount you can put in or only offer the promotional APY for a short amount of time (6-7 months).

[ASBSECU E93]

Originally Posted by SunnyD

Sure you'll get better rates through a credit union, but they usually either cap the amount you can put in or only offer the promotional APY for a short amount of time (6-7 months).

Not necessilairy- I am the Chief Lending Officer for a $2 billion asset credit union, so I can speak from a Credit Union perspective. I also have 20 years in Commercial Lending for several large banks, typically dealing with high net worth borrowers.

Most Credit Unions can offer private wealth / private banking type services at significantly reduced fees, with many (like ours) offering investment advisement services for free. We do not limit the amount of assets a member can or will bring to us.

Unless you have significant wealth (liquidity and investable assets) - not sure what additional perks are to be gained. I'd also be leary of any minimum "relationship" requirements the banks outline to maintain the private bank status. If you can join a credit union - I highly recommend that you look into that option, they are all not for profit member owned cooperatives. The profits are returned to their members - NOT the stock holders.

[kevinbahnz]

Originally Posted by bkM3

Wow 5%? I use ally and was happy with 1%. Iv been looking to move some money into a cd. Which credit union do you belong to? Is it open to the public?

+1, I'd like to know also. I'm with Discover at 1.74%.

[Razzy]

I'm in Personal and Commercial banking and Private Banking is just another way of charging you an added fee simply because you have bigger numbers in your account all the while "trying" to make you feel "special".

Want to know when the word "Private" is beneficial in Banking? When it comes to Investment and Brokerage accounts. I am assigned 2-3 associates who will give me info and put in trades for me at my request as well as adress any concerns or questions asap.

For example at the branch level, I spoke to my account manager and they wanted to charge me 120 bucks for opening my RSP account. I called the associates assigned to me (at the same bank by the way) and they not only did not charge me a fee, they also got all the paperwork done for me so that all I had to do was sign and scan it back to them.

In short, with private banking squeeze whatever benefit you can get. Write down the costs associated with getting the benefits than lastly see if the fees are worth the benefits. There is no gaurantee that Private Banking will work better for you.

[NY10]

Chase interest is 1% right now which really equals nothing even with over 500,000 in an account.

The perks from what I understood are higher ATM withdrawals, no fees for using outside banks, free checks, wire transfers, canceled check fees are waived, no monthly fee on account, international banking. Discounts to some places like museums and stuff in the City and pretty much everyone in the bank kissing your ass every time you walk in.

A private banker who pretty much will do anything any second you walk in or call.

I'm not about to switch banks now but the interest rates today are horrible. 0.1% on checking and 1% on savings.

I no longer hold any CDs cause I got nothing from them and found them unless. I have investments and a CPA who handles stocks for me. I wouldn't need the bank to do any of that. Just pretty much hold my money in the 2 accounts I have.

I have to admit getting the Privite client black card will be kinda cool.

[Rygel XXV]

Originally Posted by NY10

I have been a Chase customer for years and have been approached several times about becoming a Chase Private Client.

I have a meeting tomorrow morning with the bank manager to see if it's worth it. I have a checking and savings account with chase and other investments with a CPA on the outside.

Is anyone else a private client, is it a good deal?

What kind of deals are we talking?
Any perks worth it?

Any other banks with higher interest rates or offers seem better?

In this economy the interest rates are so low that even with high amounts of money it doesn't seem that the interest really is worth all that in the end.

You might want to search the forum. This question was asked a while ago and quite a few good answers came out.

I have Chase Private Client and HSBC Premier banking relationships in order to take advantage of specific benefits. With the former, it's the free wire transfers, and with the latter, it's free global transfers and automatic Premier memberships in other countries. Unless you have a need for the benefits, I really don't think there's any reason to plunk down $150K+ with these institutions.

My experience with Chase, by the way, was horrible, and I would never recommend them. Again, I use them for specific benefits, and if and when I no longer have a need for them, I'll jump ship.

Don't be dazzled by the marketing crap. If you have your own brokerage and a financial advisor, I highly doubt any "premier" banking will offer you anything new. Private banking, on the other hand, with minimums of $5MM and up would be much more worthwhile for access to investments not normally available to us mere mortals. If you can join that, definitely think about it.

[SLOWER]

I'm using Barclay's at 1%. Also have a local checking account that is 1% up to $10k balance.

[mlifxs]

Originally Posted by Razzy

I'm in Personal and Commercial banking and Private Banking is just another way of charging you an added fee simply because you have bigger numbers in your account all the while "trying" to make you feel "special".

.

As your wealth accumulates, this is part of the game. Maybe some transaction perks, access to certain types of investments that only "special people like you" deserve.

We keep our money at that Index Fund group in PA. They only reach out to us to tell us our statements are ready or if something has changed online. They give us low fees everyday and great service whenever we ask for it.

EDIT: the newest game at some firms is making you feel special, trying to convince you you'll live longer than the average person, and yes, we can help

[Razzy]

Originally Posted by mlifxs

As your wealth accumulates, this is part of the game. Maybe some transaction perks, access to certain types of investments that only "special people like you" deserve.

We keep our money at that Index Fund group in PA. They only reach out to us to tell us our statements are ready or if something has changed online. They give us low fees everyday and great service whenever we ask for it.

EDIT: the newest game at some firms is making you feel special, trying to convince you you'll live longer than the average person, and yes, we can help

As your wealth increases yes you may require more special services and products but it isn't always a given. It is situational. Not every wealthy person needs complex derivatives or hedging services. It really depends from person to person.

As for index fund, they are a very simple invest vehicle and do not require active management so I would not expect an investment advisor to keep pestering you in regards to that. Index funds also don't have much scope for the IA to make money off of you as they can very easily be traded (they operate like a stock) on the market. Every full and discount brokerage offers Index Funds for purchase, whether it be their own variation or one of the big ones like Vangaurd.