The Best Banks for Millionaires

By The Balance Editors   Updated on November 30, 2022

Banks are essential for everybody, but millionaires and other high-net-worth (HNW) customers need to be especially choosy about the banks they choose. With more money at stake—and more money at the disposal of the bank—the experience is quite different for wealthy individuals.

Many HNW individuals choose to work with a private bank—either a stand-alone company or the private banking division of a larger banking corporation—that focuses on the management of wealth.

Account Features for HNW Customers

Banks stand to earn more off of their relationships with HNW clients, so they’re eager to reward you and compete for your business. As you shop for private banks and other companies you feel could meet your needs, compare these features.

Higher APY: With a significant savings account balance, you should be eligible to earn more—a higher annual percentage yield (APY)—on your deposits. Evaluate how much banks pay at different levels and shop around. But you may find that, even as a millionaire, online banks are the best place for idle cash.1

Dedicated customer service: Most financial institutions have specialized departments for HNW customers, and it pays to work with those teams. You get access to experienced individuals who have excellent customer service skills and are more empowered to solve problems for high-priority clients.2

Free services: Although you can afford to pay $35 for a wire transfer, it’s nice to get things for free. With a sizable account balance, you should automatically enjoy no monthly fees, free cashier’s checks, free stop payment requests, a safety deposit box, and more. ATM rebates are more or less standard for HNW customers.3

Higher payment limits: Standard bank rules may be inconvenient for millionaire customers, who often need to move large sums. But private banking arrangements typically allow for much larger debit card purchases, higher ATM withdrawal limits, and generous ACH transfers.4

Better borrowing: Look for lower interest rates on loans, but don’t expect free money. Still, banks are willing to waive origination fees and other closing costs, as well as move your application through underwriting quickly.5 They might even make exceptions when you don’t fit the standard profile.

Cash management accounts: Some firms that traditionally served brokerage needs now want your banking business. Cash management accounts, with competitive interest rates and ATM rebates, are ideal for millionaires who prefer to manage their finances themselves.

Plus, cash management accounts can spread funds among multiple banks to provide more than $250,000 of FDIC insurance in a single account. For example, the Fidelity Cash Management account uses bank partnerships to place up to $1,250,000 in FDIC-insured accounts.6

If you choose to use a cash management account, read all of the details to ensure all of your money is protected.

Setting Your Priorities

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https://www.thebalancemoney.com/top-accounts-used-by-millionaires-4165695