Keep Your Money in a Private Bank!

There are a lot of ways to make a profit and preserve your wealth. You can invest in securities, real estate, business, and so on. You can keep a part of your money in a bank, and most wealthy people use this opportunity as well (even though it does not bring exorbitant profit). Which bank to choose then? Let’s look at the experience of wealthy people: most of these choose private banks, and there are reasons to do so! Let’s look at them.

If you are interested in making your money work or keeping it in a safe place, we would like to invite you to our portal called International Wealth to read the full text on how to choose a private bank account. We write about international banking and business, investments (including citizenship and residency by investment), asset protection, and more. Our experts work with people across the globe and find the best solutions for them, and they share their experiences and give useful tips in our posts.

You can book a session with our expert, which is absolutely free if you just need to discuss your situation and find the best way out. We analyze your circumstances and find the best jurisdiction (or bank) to start your business (or open a bank account) at no charge whatsoever. And if you want to delegate the administrative part of the matter to us, you can have a smooth bank opening experience: all you will have to do is collect the documents according to our instructions and fill out the forms following our recommendations. Book a session today!

How Wealthy People Keep Their Money Safe

Wealthy individuals usually want to keep their identity and the amount in their bank account as private as possible. While you cannot have absolute confidentiality with present-day technologies, HNWIs choose a bank account in combination with another legitimate means of saving funds:

  • Irrevocable and discretionary trusts will give you plenty of benefits: your capital will never be in the public eye, you will pay less taxes, you can freely distribute profit among beneficiaries without anyone knowing about it or interfering with your decision in any way, and your money will be reliably protected from creditors and the decisions of foreign courts. Not all trusts can give it all to you, though (contact our experts to find out).
  • Foundations. These may also involve offshore companies where a wealthy family owns the company property or shares. All you need to do is choose a suitable bank that is ready to ensure the level of secrecy you need. Liechtenstein, Panama, and Nevis are among the traditional jurisdictions where wealthy individuals set up family foundations.
  • A powerful duo: an offshore LLC and an offshore trust. This is an ideal step for money accumulation and protection, and Nevis is a perfect jurisdiction to realize this plan.

Always take care of diversification, though. Everyone knows that this is the key to your financial safety, and still, some people risk putting all their eggs in one basket! Set up a trust in one country and open a bank account in another one to bring your safety to the highest level possible.

Let’s Look at Bank Safety

It is natural enough that you should do some research before entrusting your capital to a bank – especially if we are talking about large amounts. We have a list of the best ones that include private, state-owned, and commercial financial institutions that would be perfect for NHWIs and other customers. They are located in the USA, Norway, Switzerland, Liechtenstein, and a number of other European countries.

Let’s look at the factors you should take into account to assess bank safety:

  • Capital adequacy ratio (20% and more)
  • No risky lending provided to customers
  • There are no subsidiaries in the country where you reside (it will help you reduce the risk of your capital being seized following a court decision)

Lawsuits and incompetent financial advisors are the primary reasons why customers may risk losing their money. One more risk is sanctions, which is not that low nowadays. And even if you think that nothing will happen to your bank account, we still recommend preparing a Plan B by opening a reserve account. You can use our pre-approval service to know in advance whether the bank will onboard you before you start collecting any documents. Follow the above link to book a session!

Banks Used by Wealthy People

According to Global Finance, rich individuals are more likely to trust private banks when they want to protect their assets. The matter is that private financial institutions offer higher rates and a wider variety of banking services, including different accounts and card products. A large amount deposited with a private bank means that you will be a VIP customer who has the right to a personal manager.

It would probably be interesting for you to look at the list of the banks chosen by wealthy people most often in 2023:

  1. J.P. Morgan, the American private bank, is the best for high net worth in the world: the assets of its clients amount to USD 1.9 trillion.
  2. Scotiabank, based in Scotland, is considered to be the best bank for rich female customers. It offers really interesting solutions for business ladies, including professional wealth management tips, and they can open bank accounts and deposit considerable amounts to achieve different goals.
  3. Hana Bank from South Korea is the best private bank if we consider digital solutions, and it is a winner of numerous awards for creative digitization. It offers a popular My Branch app where customers can set up an account on beneficial terms.
  4. Private Bank BBVA is considered to be the best one for substantial investments in 2023. It offers really good services for investors, including selection and analysis of investment products, in-house investment fund management, as well as mortgages and loans.
  5. BTG Pactual is the leader if we talk about technology and wealth management. It offers a wide range of banking services, and it launched a special project last year called BTG Campus. This is a platform where you will find useful topics for self-education and various descriptions of methods that will help you solve financial problems connected with wealth management.

Please follow the above link to read details about the remaining 5 banks on our list. And if you want to open an account in one of them, feel free to get in touch with our expert!