What Is Private Banking?

Private banking is a premium service designed for people with significant wealth who want expert help managing their money. Instead of calling a customer service line or piecing together financial advice, clients get a dedicated advisor who helps with everything from investments to tax planning.

This guide explains how private banking works, who it’s for, what it costs, and how to decide if it’s the right fit for your financial goals.

How Private Banking Works

Private banking gives you direct access to a dedicated relationship manager who helps you build and manage a custom financial plan. This often includes investment strategy, tax planning, and wealth preservation—all tailored to your specific goals.

You’ll also get access to services and products not available through standard banking. These might include alternative investments, private funds, or exclusive lending options. Many private banks offer added perks, like VIP service centers or invite-only events.

The goal is to simplify your financial life while helping you grow and protect your wealth over time. It’s a more hands-on, personalized experience built around your full financial picture.

Who is private banking for?

Private banking is built for high-net-worth individuals and families with complex financial needs. These clients often have multiple income streams, significant investable assets, and long-term goals like legacy planning, charitable giving, or investment diversification.

They’re looking for more than basic banking. Private banking appeals to people who want expert guidance, a high level of personal service, and a single point of contact to manage both their day-to-day finances and long-term strategy.

If your financial life has outgrown standard banking and you want a more strategic, hands-on approach, private banking may be worth considering.

What services do private banks offer?

Private banks offer tailored financial services designed to help clients grow, protect, and transfer wealth. Common offerings include:

• Investment strategy – Customized portfolio management and risk planning based on your goals and timeline.
• Tax planning – Advice to help reduce tax liability and align your financial decisions with tax efficiency.
• Wealth transfer – Guidance on passing assets to future generations through trusts, estate planning, or gifting strategies.
• Concierge banking – High-touch services like account management, wire transfers, and direct access to private banking centers.
• Exclusive financial products – Access to alternative investments, preferred lending options, and other private market opportunities.

These services are tailored to your financial situation and managed by a dedicated advisor who helps coordinate your full wealth picture.

Pros & Cons of Private Banking

Private banking offers a personalized experience that goes far beyond what traditional banks provide—but it’s not the right fit for everyone. Here’s a look at the main benefits and drawbacks.

Pros

• Personalized service: You get a dedicated advisor who understands your financial goals and manages everything from daily banking to long-term planning.
• All-in-one financial support: Investment advice, tax strategies, estate planning, and more—all coordinated under one roof.
• Access to exclusive offerings: Private clients often qualify for preferred lending rates, alternative investments, and other financial products not available to the general public.
• Simplified banking experience: With one point of contact, you avoid juggling multiple advisors or accounts across institutions.

Cons

• High costs: Fees can add up quickly, especially if you’re paying for asset management, investment advisory, and concierge services.
• Not widely available: Only select banks offer private banking, and you’ll typically need to meet steep asset or income requirements to qualify.
• Complex structure: The full range of services can be difficult to understand and manage unless you’re already financially savvy—or have a strong advisor guiding you.

Private banking can be incredibly valuable if you have the right financial profile and goals. But it’s important to weigh the service level against the cost and complexity before committing.

Who qualifies for private banking?

Private banking is reserved for clients with substantial assets and complex financial needs. While requirements vary by institution, most banks look at a few key factors:

• Net worth: Some banks set the minimum at $250,000 in investable assets, while others require $1 million or more.
• Income: High annual income can strengthen your eligibility, especially when combined with growing assets.
• Investment profile: A diversified portfolio signals that you’re financially established and serious about long-term planning.
• Existing relationship: Many banks prefer clients who already use their checking, savings, or business accounts.
• Financial goals: Banks want to see alignment between your needs—like legacy planning or investment strategy—and what their private banking team offers.

Eligibility rules aren’t one-size-fits-all. If you’re close to the thresholds, it’s worth reaching out directly to see what’s possible.

How to Choose the Right Private Bank

Not all private banks offer the same level of service, so choosing the right one matters. Start by comparing reputation, client satisfaction, and the bank’s long-term stability.

Look for a team with experience that matches your financial goals—whether that’s tax efficiency, estate planning, or alternative investing. A seasoned relationship manager with the right background can make a big difference.

You’ll also want to evaluate the bank’s tools and reach. If you manage international assets or travel often, global services and digital access should be priorities. The best private banks combine high-touch personal support with modern, user-friendly tech.

Take time to compare offerings across a few institutions before deciding. The right fit should make your financial life easier—not more complicated.

How much does private banking cost?

Private banking offers a high level of service, but it also comes with higher fees than traditional banking. Here’s what to expect:

• Account maintenance: Many banks charge monthly or annual fees, which can range from a few hundred to several thousand dollars depending on your service tier.
• Asset management: Fees for managing your investments typically fall between 1% and 2% of assets under management, though this can vary by firm and portfolio size.
• Investment advisory: Some banks charge separately for investment advice or access to specialty products, especially if they fall outside your core portfolio.
• Other service fees: Wire transfers, bill pay, and other concierge-style features may carry additional charges.

Always review the fee structure in detail. Some banks bundle services into a single rate, while others charge à la carte. Either way, the cost should make sense for the value you’re getting.

Private Banking vs. Wealth Management: What’s the Difference?

While private banking and wealth management can overlap, they focus on different aspects of your financial life. Here’s how they compare:

• Scope of service: Private banking centers on personalized banking, investment support, and concierge-style service. Wealth management is broader, often including estate planning, tax strategy, and insurance.
• Client profile: Private banking is typically for high-net-worth clients with $1 million or more in investable assets. Wealth management can also serve clients with lower thresholds, especially those building long-term plans.
• Cost structure: Private banking often includes premium fees for bundled services and access to exclusive products. Wealth management fees are usually based on assets under management and range from 0.5% to 2% annually.

If you need high-touch banking support and access to elite products, private banking may be a fit. If you’re looking for a broader financial plan and long-term strategy, wealth management might offer more value.

See also: Best Bank Accounts for Millionaires of 2025

Top Banks That Offer Private Banking

Many large banks offer private banking services, including major commercial institutions like JPMorgan Chase, Bank of America, and Citigroup. These banks often provide a full suite of private banking solutions alongside other financial services, making them a one-stop shop for high-net-worth clients.

There are also banks that specialize exclusively in private banking, such as UBS, Credit Suisse, and Julius Baer. These firms often focus on global wealth management, alternative investments, and cross-border financial planning.

Whether you prefer the scale and infrastructure of a large commercial bank or the boutique feel of a dedicated private bank depends on your priorities, goals, and service expectations.

Should You Use a Private Bank?

Private banking can be a powerful tool if your finances are complex and you want hands-on support. But before signing up, compare it with other options like certified financial planners, investment advisors, or building your own team of specialists.

Just having the minimum assets—often $250,000 or more—doesn’t mean private banking is the best fit. The real question is whether the value you’re getting justifies the cost.

Think about what you truly need: Is it personalized banking, or a broader financial plan? Would a CPA, estate attorney, and investment advisor serve you better individually—or do you want everything managed through one relationship?

Evaluate the pricing, services, and expertise across both private banks and independent professionals. Then choose the setup that delivers the best results for your money.