Private banking is a set of financial and banking services typically offered to wealthy clients - also known as high net worth individuals - by a bank or other financial institution. Unlike a regular checking account, a private bank account is traditionally opened with the expectation that the bank will manage the money for you. This means that private banking departments typically only want to see a minimal number of transactions coming in and out of your account - this is not the account used to receive salary payments, pay bills, or do business drawings. However, it would be the right place to keep your family fortunes, litigation from a business sale, or any other money you don't want to spend in the near future.
If you are looking for a safe and reputable bank for wealth management or other private banking services, the Confidus team can help you find the most efficient solution for all your needs.
Opening a private bank account
When discussing the key differences between a private bank account and other types of accounts, it is important to point out the additional requirements and general procedure for opening an account with a private bank. The main requirement for opening a private bank account is a substantial amount - while the lowest minimum deposit is around 250,000, some banks require 5,000,000 in deposits before you can open a personal bank account.
Opening a personal bank account requires a certain amount of paperwork and a procedure will be followed. While the main condition for opening a private bank account is the deposit of a certain amount of money, there are cases when applicants are denied a private bank account for other reasons. Every year around 5% of applications are rejected due to suspected fraud or illegal activity. To avoid accepting funds generated through arms or drug trafficking, or other illegal activities, private banks go through rigorous risk and compliance procedures mandated by regulators to verify the identity of the prospect and the source of the funds . The beneficiary of the funds must also be identified.