Premier / "Private" Banking - the newest con?

digp

Would be interested in your views.

ShelfStacker_3

Not new, and not a con. People with high net worth have different needs, which are served by these products. Fairly simple, really...

*Paris*

I agree with Shelfstacker, people with more money have different needs, and it is good to have your own relationship manager. Premier accounts also have preferential rates on savings, overdrafts, loans and credit cards.

Kavanne

tbh I once had private banking and all they did was tell me to shove my money in money markets... no long term investments or planning. When I cancelled it they had the cheek to send me a letter THEN saying there were many other services they could offer... Well thanks!!

Now I make do with 'normal' banking service and all my long term planning is done by an INDEPENDENT advisor.

I just keep a token amount of savings with my bank (my ISA) to make sure my internal scoring with them stays high.

*Paris*

I_Used_To_Lurk wrote: »

The need to play golf with their bankers and sit on more plush chairs when meeting with their bank manager...

lol! Sounds good to me!

Aegis

digp wrote: »

Would be interested in your views.

I really fail to see how it's a con. It's a higher level of service for those with more assets or borrowing from a bank. Among other things, you can get the following benefits if you choose to go for the service:

Some better savings rates
Better mortgage rates
Better loan rates
Better overdraft rates
Lower charges for exceeding your agreed overdraft
Free travel insurance
Enhanced international service
A named contact in the branch who will get to know your specific requirements
Access to multi-tied/independent financial advisers (salesforce, yes, but fine for some)
Better plastic products

I'm sure I've missed a few things here, but the general idea is that it's not really a con, there are defined benefits that go with the service, and anyone who wants some of these benefits is welcome to apply.

Why don't you tell us why you think it's a con?

Kavanne

Aegis wrote: »

Why don't you tell us why you think it's a con?

IMHO: Because they promise all this fabulous stuff and then don't deliver!!

Aegis

Kavanne wrote: »

IMHO: Because they promise all this fabulous stuff and then don't deliver!!

Can't really comment on anyone else's experience, but I see some really good delivery of all the above for the vast majority of the premier clients I've encountered. Probably depends largely on the bank and the individual actually providing (or not) the service rather than the service itself.

ManAtHome

Can't complain about HSBC Premier - if it doesn't add value for you, plenty of other accounts...