Got at least S$200K worth of assets at your disposal? Priority banking beckons, as you get introduced to wealth amassing investments, a dedicated relationship manager, and VIP-level lifestyle perks.
Read the latest news on priority banking products in Singapore specifically curated for the high net worth individuals.
Benefits of priority banking
There are a host of benefits when you apply for a priority banking programme:
Differences between priority and private banking
Although they appear to be synonymous, private banking is actually a large step-up from priority banking. Private banking caters to ultra-high-net-worth individuals, with AUM requirements that are multiples higher than priority banking programmes.
In turn, clients are offered the widest range of financial products and services, the most personalised service, and the best perks.
Fees and charges to look out for in a priority banking programme
There aren’t any fees or charges for joining a priority banking programme. However, annual membership renewal depends on whether you maintain the minimum AUM stipulated by the bank.
If you do not meet that requirement, banks can either levy a fee or deny membership renewal and convert your priority banking relationship to a personal banking one.
Priority banking is a step above retail banking, being offered to high-net-worth individuals who intend to transact larger amounts with banks. Priority banking clients are granted personalised financial advice, a wider range of financial products and services, and better lifestyle privileges.
Each priority banking programme has a minimum Assets Under Management (AUM) amount that you need to meet. You can do so by making a cash deposit, purchasing qualifying investment products, or a combination of both. Perform a check before applying because the AUM amount varies across the many priority banking programmes available in Singapore.
It depends, because each priority banking programme in Singapore is unique. Firstly, not all priority banking programmes have the same qualifying AUM. Secondly, the financial services and products offered aren’t identical across the board. Finally, lifestyle privileges and other fringe benefits that are granted differ as well. That said, some of the top ones in Singapore include Citigold, DBS Treasures, OCBC Premier, and UOB Privilege Banking.
Some features of a priority banking programme include wealth planning, quicker and more personalised service at banks, access to a wider range of financial services and products, and more.
A bank’s Relationship Manager provides personalised financial advice to priority banking and private banking clients. They suggest appropriate investment products and financial services based on their clients’ current situation and goals, be it short-term or long-term ones.
Private banking is a tier above priority banking and is offered only to ultra-high-net-worth individuals. Qualifying requirements are even more stringent, but clients receive the widest range of financial services and products, best service, and most luxurious lifestyle benefits.
Like priority banking programmes that are a tier below private banking, it depends. No private banking programme is the same, so it pays to do your research and compare what’s available before you decide to sign up with a particular bank.
Several benefits of a premium bank account include fee-free withdrawals from ATMs overseas, no foreign exchange fees, and bonus interest rates that are extended to a greater balance in your account.
Due to the exclusive nature of priority banking programmes, KYC checks conducted by banks are stricter as compared to retail banking products and services. It’s important for banks to know who their priority banking clients are and verify their identity, as the amounts of money transacted will be much larger than retail banking customers.
There are several scenarios where a bank can disclose a customer’s account information. Firstly, it can do so if it needs to take legal action against a customer. Secondly, it can also do so if a customer permits it in writing. Last but not least, a bank can disclose a customer’s information to the police or court for investigation purposes.