Oct 25, 2023 By Triston Martin
Finding the right bank for HNWIs is crucial. Even small differences in returns, fees, and rewards can make a big difference when managing large amounts of money.
Many banks have separate departments that are exclusively for HNWIs. These banking divisions provide a range of services that are not offered to the general public, including concierge banking, wealth management, discount mortgages, and rewards on credit cards.
JPMorgan Chase & Company and Wells Fargo & Company (WFC) are two of America's most well-known and oldest banks. They offer private banking services for account holders with balances exceeding certain thresholds. Chase offers Private Client Banking, while Wells Fargo calls its program The Private Bank. Individuals involved in private banking are called Private Clients.
These programs are very similar. Both offer mortgage perks, higher yields from certain deposit accounts, and personalized service. However, subtle differences exist between both banks. For example, Wells Fargo requires a minimum account balance of $1 million to become a private client. Chase only requires a minimum balance of $150,000.
Chase offers private client banking customers reduced mortgage interest rates at varying levels. These rates are based on Chase's total investments and deposits. Fixed-rate mortgages are available for the entire loan term. However, adjustable-rate mortgages (ARMs) can be availed until the first adjustment.
Private Client Banking customers receive a $750 discount on closing costs. Because they have priority processing, their loans are processed faster, and they have access to a senior underwriting team. Chase private clients receive interest rate discounts on home equity lines of credit (HELOCs) and traditional mortgages.
Private clients of Chase receive wealth management services from JPMorgan. These services include annuities, financial advisory services, and mutual funds. They also offer securities-based lending, annuities, and college planning. This includes tax-advantaged 529 plans. Private Client Banking customers can access the firm’s global strategy, global solutions teams, and private client advisors.
Chase provides access to the Chase Sapphire Reserve card, which gives you a $300 annual travel credit. Chase also offers the Chase Sapphire Preferred card, which earns double points for dining and travel worldwide. The Chase Private Client Service provides a dedicated Private Client Advisor that can assist you in planning and executing your investments.
Different territories are covered by the mortgage rewards offered to Wells Fargo Private Clients. Like Chase, clients receive special interest rates based on their deposit account balances. Private client with existing mortgage that makes a large lump sum payment can choose to recast the balance.
This adjusts the amortization table to reflect the remainder of the term. It also allows more principal to be paid to interest than to principal. Customers can use the bank's cash purchase option to finance their purchases by taking cash-only realty deals. The buyer can pay the property cash and apply for a Wells Fargo mortgage within 90 days. Private Clients with good credit can buy a property using a jumbo loan, which requires only 10.01% down.
Private clients of Wells Fargo receive personalized wealth planning, investment management, and trust services. Private banking is also available. Clients with unique assets such as small businesses, oil, gas, minerals, or investment real estate can access expert management.
Wells Fargo offers the Private Bank, this earns three points for every dollar they spend on travel, two for dining, and one for all other purchases. It is free to use, unlike other HNW cards. The perks increase with every dollar spent. Wells Fargo does not offer a personalized investment advisor service like Chase. Instead, you can fill out a contact form, and a representative will contact you to discuss your options. Although there are many details on what you can do with your money, it doesn't offer the comfort or guidance that a novice investor would need.
Many banks offer cash sign-up bonuses when you open a new bank account. By opening a new account, you could be earning hundreds of dollars. GOBankingRates keeps you informed about the latest bank promotions every month.
Word-of-mouth is the best way to find out how a bank might work for you. Ask your family, friends, and colleagues which financial institution they use. Find out what your friends and family like about the bank and what they would change. You can benefit from their experience by learning how the bank could work for you.
Depending on your banking habits, you may choose to open a physical branch where you can receive personal assistance.
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