Where do you bank if you have a high net worth?

[Anonymous]

Anonymous wrote:

Anonymous wrote:JPMorgan private bank (they also have private client, which is a step up from regular banking but doesn't require $10mm liquid net worth). I've found them very helpful to deal with.

Again, what services, specifically, do you use?

I step into my bank maybe once every 3 years, and its usually because a grandparent wrote a check in my kids name. I don't understand what services are worth the faff, as the Brits say.

They hold our investment accounts, although we self-manage. When mortgage rates were at 7%, we were able to borrow against our assets through them to get our rate down to under 3% while still taking advantage of lower housing prices due to high rates. They do an annual assessment of investment allocation and financial projection with our personal financial goals in mind, which is not necessary but can be helpful. We have credit cards issued to household staff, and they manage the cards - check receipts, keep an eye on budgets, etc. We got a good deal on life insurance through them, and we have access to a lot of private equity funds and hedge funds that we wouldn't meet the minimum investment amount for on our own. We've invested in a number of investment funds with $10-25mm investment minimums that have done very well for us. We have a dedicated banker who we contact directly for anything we need, which means that we can get anything we need taken care of immediately.

I don't think that it's necessary or even that big of a deal to be part of the private bank, but it costs us nothing and it can be helpful. I have no experience with Chase private client, only JP Morgan private bank, so I can't speak to the value of that, I just know it exists.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:JPMorgan private bank (they also have private client, which is a step up from regular banking but doesn't require $10mm liquid net worth). I've found them very helpful to deal with.

Again, what services, specifically, do you use?

I step into my bank maybe once every 3 years, and its usually because a grandparent wrote a check in my kids name. I don't understand what services are worth the faff, as the Brits say.

They hold our investment accounts, although we self-manage. When mortgage rates were at 7%, we were able to borrow against our assets through them to get our rate down to under 3% while still taking advantage of lower housing prices due to high rates. They do an annual assessment of investment allocation and financial projection with our personal financial goals in mind, which is not necessary but can be helpful. We have credit cards issued to household staff, and they manage the cards - check receipts, keep an eye on budgets, etc. We got a good deal on life insurance through them, and we have access to a lot of private equity funds and hedge funds that we wouldn't meet the minimum investment amount for on our own. We've invested in a number of investment funds with $10-25mm investment minimums that have done very well for us. We have a dedicated banker who we contact directly for anything we need, which means that we can get anything we need taken care of immediately.

I don't think that it's necessary or even that big of a deal to be part of the private bank, but it costs us nothing and it can be helpful. I have no experience with Chase private client, only JP Morgan private bank, so I can't speak to the value of that, I just know it exists.

I appreciate the detailed response! But the bolded clearly indicates you are playing in a different world that even those with a couple of million in assets aren't in.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:JPMorgan private bank (they also have private client, which is a step up from regular banking but doesn't require $10mm liquid net worth). I've found them very helpful to deal with.

Again, what services, specifically, do you use?

I step into my bank maybe once every 3 years, and its usually because a grandparent wrote a check in my kids name. I don't understand what services are worth the faff, as the Brits say.

They hold our investment accounts, although we self-manage. When mortgage rates were at 7%, we were able to borrow against our assets through them to get our rate down to under 3% while still taking advantage of lower housing prices due to high rates. They do an annual assessment of investment allocation and financial projection with our personal financial goals in mind, which is not necessary but can be helpful. We have credit cards issued to household staff, and they manage the cards - check receipts, keep an eye on budgets, etc. We got a good deal on life insurance through them, and we have access to a lot of private equity funds and hedge funds that we wouldn't meet the minimum investment amount for on our own. We've invested in a number of investment funds with $10-25mm investment minimums that have done very well for us. We have a dedicated banker who we contact directly for anything we need, which means that we can get anything we need taken care of immediately.

I don't think that it's necessary or even that big of a deal to be part of the private bank, but it costs us nothing and it can be helpful. I have no experience with Chase private client, only JP Morgan private bank, so I can't speak to the value of that, I just know it exists.

I appreciate the detailed response! But the bolded clearly indicates you are playing in a different world that even those with a couple of million in assets aren't in.

PP - just to clarify, we aren't investing $10-25mm on our own. JP Morgan private bank has aggregated funds accessible only to their private bank clients that allow you to invest with their other clients. We're only investing $500k-1mm of our own assets in each fund, but get much higher returns from these funds than we would be able to get in a fund with a lower investment limit (generally). JP Morgan private bank (like Citi private bank, I believe) requires a minimum of $10mm in liquid, investable assets and $25mm net worth to be invited.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We have a high net worth but very little of that money is in the bank. I'm not sure why id need anything special from my bank. What am I missing?

If you are super HNW, banks would provide ultra low interest loans to their clients. I recall First Republic was only charging like 1% to tech billionaires who wanted to borrow against their shares vs sell and trigger capital gains.

Of course, we know what happened to SVB and First Republic…so you have to be careful.

That’s not so much a bank providing low interest loans as it is a bank facilitating tax avoidance (a word I chose carefully).

Call it what you want...although, it's not even remotely illegal. It is a widely accepted, IRS-blessed approach.

[Anonymous]

Citi Private, through my law firm. Have been very happy.

[Anonymous]

Anonymous wrote:Citi Private, through my law firm. Have been very happy.

Is this common in law firms, or are a bunch of people from the same law firm regulars here?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Citi Private, through my law firm. Have been very happy.

Is this common in law firms, or are a bunch of people from the same law firm regulars here?

I remember Citi Private Bank being pitched to me when I was a young associate. I never took them up on it. I think they offer this to a lot of biglaw because Citi Private Bank has some kind of financial service that the law firms themselves use.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We have Citi Private Banking, also through DH’s firm. We got a lower mortgage rate and get much more personalized service.

What is your mortgage rate?

What services do you require?

DP but we use Citi private bank. Our mortgage rate is 2.5 and we have a banker I email about stuff. That part isn't really worth it but the access to low rates is.

Ours is 2.5 also, from a mortgage broker back in 2021, I don't think they are actually underpricing the market.

Citi private bank gave me 1% unsecured 2 million credit line when I was buying a second home. Think it would be more now but not over 2%.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We have Citi Private Banking, also through DH’s firm. We got a lower mortgage rate and get much more personalized service.

What is your mortgage rate?

What services do you require?

DP but we use Citi private bank. Our mortgage rate is 2.5 and we have a banker I email about stuff. That part isn't really worth it but the access to low rates is.

Ours is 2.5 also, from a mortgage broker back in 2021, I don't think they are actually underpricing the market.

Citi private bank gave me 1% unsecured 2 million credit line when I was buying a second home. Think it would be more now but not over 2%.

What were your assets on deposit? And what were the terms of the line?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:JPMorgan private bank (they also have private client, which is a step up from regular banking but doesn't require $10mm liquid net worth). I've found them very helpful to deal with.

Again, what services, specifically, do you use?

I step into my bank maybe once every 3 years, and its usually because a grandparent wrote a check in my kids name. I don't understand what services are worth the faff, as the Brits say.

They hold our investment accounts, although we self-manage. When mortgage rates were at 7%, we were able to borrow against our assets through them to get our rate down to under 3% while still taking advantage of lower housing prices due to high rates. They do an annual assessment of investment allocation and financial projection with our personal financial goals in mind, which is not necessary but can be helpful. We have credit cards issued to household staff, and they manage the cards - check receipts, keep an eye on budgets, etc. We got a good deal on life insurance through them, and we have access to a lot of private equity funds and hedge funds that we wouldn't meet the minimum investment amount for on our own. We've invested in a number of investment funds with $10-25mm investment minimums that have done very well for us. We have a dedicated banker who we contact directly for anything we need, which means that we can get anything we need taken care of immediately.

I don't think that it's necessary or even that big of a deal to be part of the private bank, but it costs us nothing and it can be helpful. I have no experience with Chase private client, only JP Morgan private bank, so I can't speak to the value of that, I just know it exists.

Another nubcake thinking it costs them nothing.

You self manage your investments?
What are the name of your investments?
How much do they charge to manage the staff credit cards?
You self managed your $10-25mm investment minimum funds? How do you know they have done very well?
You contact your banker for what?

Do you give to the underprivileged or worthy charities ? If you do, you can be giving more.

[Anonymous]

ML/BoA getting over half a percentage point reduction on mortgage rate and free ACH transfers + free safe deposit box + free small biz account. I really like them.

[Anonymous]

Also with Citi private through firm. They offered about 0.5-1% below market at the time we purchased (I shopped around) and permitted 10% down with no PMI. We’ve been happy with them, though our self managed investments have not moved over to Citi yet (mostly out of sheer lack of time to figure it out) and are with fidelity currently.

[Anonymous]

We use JPMorgan private client. We have a dedicated financial advisor who we love. But if he retired I'm not sure what we do. We stay primarily for him. JPMorgan in general has gotten less competitive on rates, IMO, since the pandemic when so many people raced to pull their money out of regionals and riskier banks, and flocked to Chase.

Yes, to the free accounts, free safe deposit box, free transfers of all kinds. All overdrafts are covered--I think it's called overdraft protection. (We have never tested this one, but it's a perk.) Reduced mortgage rate, however, it is reduced on the rate they are offering, not on competitive offers. (At least that was how it was a couple of years ago when we were buying. We ended up paying cash instead.) When we bought another house in 2018 they had competitive rates, off of which we got the reduced %.

I personally feel that while the free stuff is important, the most important thing to me is the personal banker who can manage things as needed.

[Anonymous]

We use a wealth management group within UBS. They are phenomenal and manage everything down to 529s, tax strategy, trusts etc. Way way less expensive than one would think, although it’s $5mm liquid investment minimum. It’s very nice to have someone watching our backs while we are busy with all other aspects of day to day life.

[Anonymous]

Anonymous wrote:We use a wealth management group within UBS. They are phenomenal and manage everything down to 529s, tax strategy, trusts etc. Way way less expensive than one would think, although it’s $5mm liquid investment minimum. It’s very nice to have someone watching our backs while we are busy with all other aspects of day to day life.

What are they charging you?