Privilege Banking

Privilege Banking

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Reap exclusive benefits with Privilege Banking Accounts

Key Takeaways

  • Privileged Banking is designed for high-net-worth clients of a bank.
  • You must maintain a high account balance to qualify for Privileged Banking.
  • Banks assign a designated relationship manager to Priority Banking account holders.
  • Banks also offer a bouquet of customised services encompassing financial planning and management.
  • You also get access to some bespoke privileges and benefits, including high daily transaction and withdrawal limits.

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.

Privileged Banking

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.

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How Privileged Banking works

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.

The Benefits of Privilege Banking

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:

  • As a privileged banking customer, you get access to personalised services beyond retail banking.
  • A designated relationship manager or a private banker assists with account management.
  • You can also enjoy financial planning and investment portfolio management services, estate planning services, insurance investment recommendations, and tax planning advice, among other things.
  • Banks offer attractive interest rates on your Privileged Savings Account as your Total Relationship Value (TRV) keeps increasing.
  • You get competitive forex rates on international remittances.
  • You can enjoy waivers on certain fees and charges, higher limits on debit or credit cards, and easily avail of high-value Home Loans, Auto Loans or Personal Loans.
  • You get exclusive credit cards with higher points on each swipe, special discounts on various brands and cashback facilities.

Things to consider

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.

Final Note

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.

With the digibank by DBS app, you can open a new savings account in a few minutes! Download the app to get started.

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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.

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