Private banking management fees?

[TrueTroop]

Hey guys, I am looking to open a private bank account, BUT hopefully one with low or even 0 management fees, am I crazy for expecting that?

I am used to having multiple "premium" bank accounts around the world holding 6 figures for example, but now want to open 1 "main" account.

The problem is that no matter who I talk to, they have crazy management fees, sometimes fixed amount, sometimes as a percentage. DBS Singapore for example is too far I think (unless really worth it and I'll go), I already have banking in the US, so somewhere in the UK or EU would be best (amount 1-2 million USD, clean proceeds).

Some options I have looked at included Julius Baer in Switzerland, but the management fees are ~5000 USD yearly. A bit annoying, since in the U.S for example, private banking is often free of management fees (and almost every other fees as well).

Note that I do not need/want wealth management services, I already have separate brokerage accounts that I indeed to keep separate of any new banking relationships...It will just be USD cash sitting there. I'm not a U.S citizen btw.

 

[Martin Everson]

So you are looking ideally for a private bank with staff and bills to pay willing to offer you free banking services in a near zero interest rate environment?

Maybe try Bank Of Freeloaders AG , Geneva branch.

 

[TrueTroop]

I appreciate the satire, but if many banks around the world can offer such services (mainly in the US from what I've seen, but some outside as well), how come it would be any different to private banking offers?

In the U.S, interest rates are not negative, but are near 0. Thanks to fractural reserve banking and other bank practices, they can still make money, without management fees, for your information.

 

[Martin Everson]

Thanks to fractural reserve banking and other bank practices, they can still make money, without management fees, for your information.

Dear private banks outside America - did you just hear that above? There is this thing called fractional reserve banking. Have you private banks never tried this before? Have you not heard of this before even? Could you not adopt this and give TrueTroop free private banking with this never before known financial alchemy? Why have you non-US private banks not adopted this and other practices to still make money and yet not charge management fees?

 

[Sols]

I'm trying to understand the request. The title of the thread mentions private banking, which normally includes asset management or investment services, but in the post you go on to explain that you do not want such services.

What do you want exactly? Just a regular personal account?

You mention US a few times, but aren't a US citizen. Are you a US resident?

 

[JohnnyDoe]

Hey guys, I am looking to open a private bank account, BUT hopefully one with low or even 0 management fees, am I crazy for expecting that?

I am used to having multiple "premium" bank accounts around the world holding 6 figures for example, but now want to open 1 "main" account.

The problem is that no matter who I talk to, they have crazy management fees, sometimes fixed amount, sometimes as a percentage. DBS Singapore for example is too far I think (unless really worth it and I'll go), I already have banking in the US, so somewhere in the UK or EU would be best (amount 1-2 million USD, clean proceeds).

Some options I have looked at included Julius Baer in Switzerland, but the management fees are ~5000 USD yearly. A bit annoying, since in the U.S for example, private banking is often free of management fees (and almost every other fees as well).

Note that I do not need/want wealth management services, I already have separate brokerage accounts that I indeed to keep separate of any new banking relationships...It will just be USD cash sitting there. I'm not a U.S citizen btw.

Some banks will offer you private banking services for zero fees. You just need to invest a x amount of money with their fantastic investment products (funds etc.), that if you are lucky will do 5% worse than a cheap index ETF, and charge subscription, management, performance and redemption fees.

 

[Silvio]

Some banks will offer you private banking services for zero fees. You just need to invest a x amount of money with their fantastic investment products (funds etc.), that if you are lucky will do 5% worse than a cheap index ETF, and charge subscription, management, performance and redemption fees.

100% correct.

If the bank won't profit from you on straight-up fees, they want to profit from fund fees. Either way there is no free meal.

Also the fact that you will ignore DBS SG because it's "too far" shows you have some very strange factors in your decision making...

 

[TrueTroop]

1) Not a US resident either, no affiliation to the U.S at all actually, so should make things easier.

2) Private banking in terms of having a high amount in the account and getting a dedicated banker because of it (not subpar investment opportunities that banks offer, I already have accredited investor status through a better/proper brokerage service, better than anything a bank can offer me)

3) Singapore is on the other side of the world for me, typically they want you to physically come to open the account, which is a hassle in terms of flights, time, tests, etc

In any case, think I already solved this myself Standard Charter SG Priority Private Account....1.1 million USD to open the account, dedicated banker, and minimal (or no?) management/custody fees.

Can even open the account remotely from another Standard Charter location in Europe of example, without ever having to physically fly to Singapore.

 

[Forester]

1) Not a US resident either, no affiliation to the U.S at all actually, so should make things easier.

2) Private banking in terms of having a high amount in the account and getting a dedicated banker because of it (not subpar investment opportunities that banks offer, I already have accredited investor status through a better/proper brokerage service, better than anything a bank can offer me)

3) Singapore is on the other side of the world for me, typically they want you to physically come to open the account, which is a hassle in terms of flights, time, tests, etc

Oh, yes.

In any case, think I already solved this myself Standard Charter SG Priority Private Account....1.1 million USD to open the account, dedicated banker, and minimal (or no?) management/custody fees.

Can even open the account remotely from another Standard Charter location in Europe of example, without ever having to physically fly to Singapore.

Good for you

 

[BlueMist]

In any case, think I already solved this myself Standard Charter SG Priority Private Account....1.1 million USD to open the account, dedicated banker, and minimal (or no?) management/custody fees.

Can even open the account remotely from another Standard Charter location in Europe of example, without ever having to physically fly to Singapore.

I wanted to recommend this but was not sure if there is any SC branch in your country. Yes, no custody fees which is very good. Last year I managed to get fresh funds promo of approx. €2300 cashback + 2 years trading (buying) fees waiver with SC SG PP. Definitely check their current PP offers.

Same thing with Citibank IPB SG. Actually it is not clear whether they do require to have any of those banks presence in your country for the paperwork/signature.

 

[TrueTroop]

I wanted to recommend this but was not sure if there is any SC branch in your country. Yes, no custody fees which is very good. Last year I managed to get fresh funds promo of approx. €2300 cashback + 2 years trading (buying) fees waiver with SC SG PP. Definitely check their current PP offers.

Same thing with Citibank IPB SG. Actually it is not clear whether they do require to have any of those banks presence in your country for the paperwork/signature.

Thanks BlueMist, actually they are currently even running the same promotions...Didn't look at Citibank, only because I'd prefer an EU focused bank this time around, vs adding another US owned bank to my mix.

Seems like other people on this forum don't even know such options exist, but obviously they do so hopefully the next person in the same situation as me finds this thread and doesn't listen to them.

 

[BlueMist]

Thanks BlueMist, actually they are currently even running the same promotions...Didn't look at Citibank, only because I'd prefer an EU focused bank this time around, vs adding another US owned bank to my mix.

Seems like other people on this forum don't even know such options exist, but obviously they do so hopefully the next person in the same situation as me finds this thread and doesn't listen to them.

To their defence, I can only say that you have formulated your question wrong - which is another reason I did not reply. You were asking about private banking options. Even if you check SC SG Private Banking offer you will see there are annual fees, higher trading fees and custodian fees. All of the sudden SC SG PB becomes expensive option. But nothing stops you from opening Priority Private account (which is not PB) and use it even if you reach PB requirements. In fact my RM told me some customers who could easily qualify for PB prefer to stay on PP level due to lower fees. Also you get RM from Priority level (Priority Private is just another status) and not from PB level. Those are the differences.

 

[Martin Everson]

Exactly people need to be really careful and understand the difference between retail and real private banking even when it comes to SC and not confuse the two...lol. It's like comparing apples to oranges. See some of the other private banking threads I posted in to understand what private banking actually is.

The term private banking should not be thrown around loosely even by banks to confuse clients when its just priority retail banking on offer .

 

[Nacho]

Nedbank Private Wealth in Isle of Man will give you a dedicated ‘Client Advisor’ and allow you to open USD EUR and GBP accounts with Visa debit cards and zero fees. Good experience for me so far!

 

[bizman]

Nedbank Private Wealth in Isle of Man will give you a dedicated ‘Client Advisor’ and allow you to open USD EUR and GBP accounts with Visa debit cards and zero fees. Good experience for me so far!

how can they do it with ZERO FEES ? does it mean there will be no reporting with this bank?

 

[Martin Everson]

Nedbank Private Wealth in Isle of Man will give you a dedicated ‘Client Advisor’ and allow you to open USD EUR and GBP accounts with Visa debit cards and zero fees. Good experience for me so far!

Ned is a good choice for private banking. There freezer trust service, if they still offer it, is one to consider and costed hardly anything to maintain.

 

[BlueMist]

Ned is a good choice for private banking. There freezer trust service, if they still offer it, is one to consider and costed hardly anything to maintain.

Please elaborate.

 

[Martin Everson]

Please elaborate.

View attachment 3107

Lol .

Nedbank offers a discretionary trust service where they set you up a dormant trust and an account for like £300 if I remember and it stays dormant (frozen). If you see a problem coming you can just move assets into and it becomes active. It just saves a lengthy lead setup time and fees over having a fully active trust if you don't need to use it just yet. You can also place in your Will what you want moved into the trust.

P.S Have a look at Nedbank Private Wealth trust opening application form. The option is still there.

 

[Forester]

Nedbank offers a discretionary trust service where they set you up a dormant trust and an account for like £300 if I remember and it stays dormant (frozen). If you see a problem coming you can just move assets into and it becomes active. It just saves a lengthy lead setup time and fees over having a fully active trust if you don't need to use it just yet. You can also place in your Will what you want moved into the trust.

P.S Have a look at Nedbank Private Wealth trust opening application form. The option is still there.

Nice. Thanks for sharing.

 

[BlueMist]

Lol .

Nedbank offers a discretionary trust service where they set you up a dormant trust and an account for like £300 if I remember and it stays dormant (frozen). If you see a problem coming you can just move assets into and it becomes active. It just saves a lengthy lead setup time and fees over having a fully active trust if you don't need to use it just yet. You can also place in your Will what you want moved into the trust.

P.S Have a look at Nedbank Private Wealth trust opening application form. The option is still there.

What about investments (stocks) or properties? Can they also be put onto such trust? If so, why not to use such trust by default? Does having such trust help or make it easier passing the wealth towards family members?