What Is a Private Banker? Should You Have One?

What is private banking and what is a private banker?

Private banking provides high-net-worth individuals with special cash and wealth management services. That can include exclusive access to bank rewards, more personalized service for day-to-day banking needs, more convenient foreign currency exchanges and deposits, tiered interest rates and increased withdrawal and mobile check deposit limits.

A private banker is a banking professional who offers concierge-like financial services to affluent individuals. They often work within a separate division of a large bank or are part of a smaller bank that specializes in private banking services.

Where to find a private banker

If you have substantial assets in your current bank, your bank will probably find you, Pelham says. with well-known names generally have private banking divisions and are likely to reach out to those with large balances. Smaller banks often find clients through word-of-mouth, he says.

Large national banks generally have private banking divisions. If you are in the fortunate position of being able to choose whether to use a bank’s private banking services, consider the relationship you want from that institution. Your current banking relationship may suffice if it meets your needs and you already have a strong team of financial advisors. But if you have substantial assets and will rely heavily on your banker’s advice, a private banker could be an important part of your team.

What are the benefits of private banking?

Access to wealth advisory services. Customers can get advice on how to create strategies for not only their banking needs but also estate and trust planning, investments and credit.

Potentially better customer service. Institutions that offer private banking tout higher-priority customer service for their clients. Services can include free deposit boxes, free rush shipping on replacement debit cards, access to private special events and a personal dedicated banker to help with your day-to-day banking needs.

Streamlined accounts. Since private bank accounts often come with wealth management solutions and advice, you may be able to link multiple kinds of accounts to make investment transactions more convenient.

Higher daily limits. Your private bank account may give you higher limits for mobile check deposit, spending and ATM withdrawals than a typical bank account.

Are there any drawbacks to private banking?

Interest rates may be better elsewhere. Despite the bells and whistles when it comes to customer service, private banking options can fall short in terms of interest rates.

You may have to pay a high monthly fee. If you don’t meet certain balance or asset requirements, you may end up on the hook for a high monthly fee. There are plenty of banks that offer free checking accounts, so consider the potential long-term costs of opening a private bank account if you'll have to pay monthly service fees.

How to tell if private banking is right for you

Here are some ways to know if you might want to consider private banking.

You need personalized service. Private bankers are known for offering high levels of personalized service. When you’re trying to put together an estate plan, an investment plan or you’re looking for a mortgage for your next business, private bankers can shepherd you to the right departments.

You want to do your banking in one place. A private banker will try to meet all your financial needs with services from their bank. Having all your accounts at one institution keeps things simple, but it’s not for everyone. You may prefer to shop around for better pricing from different providers. Or, if you already have financial relationships with professionals outside your bank, you may not want to move all your accounts to one institution.

You have enough assets for private banking. Banks have different rules and thresholds for who qualifies for their private banking services. Check with the bank you’re interested in to see if you qualify. Some banks offer private banking services for customers with smaller bank balances — thousands of dollars instead of millions — but those services may come with monthly fees if the minimum balances aren’t kept.

But you don’t have to be a multimillionaire or have private banking to avoid bank charges. Many checking and savings accounts, particularly those at online banks, don’t have monthly fees, and some institutions offer perks, such as ATM fee reimbursements.