Reap exclusive benefits with Privilege Banking Accounts
The banking industry has transformed leaps and bounds in the last decade. Gone are the days when the fundamental business module of banks was limited to deposit accounts and loan sanctioning. Banks today offer exceptional services, from specialised Savings Accounts and Mutual Funds investment opportunities to online fund transfers and bill payments. Many banks today offer Privileged Banking Accounts. Let us understand what it is in this article.
Privilege banking, also known as priority banking, is a service through which banks provides special privileges to high-net-worth individuals (HNI). It encompasses a bouquet of personalised services ranging from basic account management to portfolio and wealth management, estate planning, tax services, and life and health insurance investments, to name a few.
Banks typically reach out to high-net-worth individuals or those with higher investments and balances in their bank accounts to offer Privileged Banking Accounts. They consider your existing relationship and the investments made with the bank – from fixed deposits to credit card payments, and so on, as criteria to consider you for privileged banking services. If you qualify, you get access to a portfolio of services that go beyond traditional banking. The bank also assigns a designated relationship manager to advise you on investments and attend to your everyday banking needs.
As is apparent from the term ‘privilege’, banks prioritise your needs when you open a Privileged Banking Account. Some of the many benefits of privileged banking include the following:
To continue enjoying priority banking services, you must ensure you maintain the required balances at all times, failing which you may have to pay hefty penalties. Furthermore, you may have to pay a commission to your dedicated relationship manager. Also, you may get comfortable with your manager, but if the bank replaces the manager, it may take some time to get used to the new manager.
Privileged banking is an excellent provision for clients with high net worth who need financial management. A private banker looks after all your banking requirements. While you can enjoy exclusive services, you must consider the bank’s requirements before opening a Privileged Banking Account.
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*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.