A table, a chair, a bowl of fruit and a violin; what else does a man need to be happy? - Albert Einstein
Private banking services are personalized financial services, including banking and investment options, which are offered to high net worth bank clients, who have much more wealth than average people do. Because of this, they have access to a larger range of conventional and alternative investment choices. Private banks try to provide these individuals with the most fitting options, which includes giving advice relating to investments, providing financing solutions, protecting and increasing present assets, managing wealth for future generations, and planning for retirement.
The term “private” applies to the personal and individualized customer service, which is quite different from the mass-market style of retail banking. In the past, private banking services were only available for individuals with liquidity over $2 million. These wealthy individuals could make use of alternative investments like hedge funds. While private banking services are still mostly available to the affluent, they are more open to others, as well. Now, private investors with $250,000 can open some types of private bank accounts. Currently, many retail banks offer private banking services. An individual with $50,000 or less in investable assets can take advantage of some of these services. Further, offshore banks in Switzerland and other countries also offer these services. Some banks specialize in this type of personalized service exclusively.