Priority vs Private Banking in Singapore
Priority and private banking are often confused with one another, mostly because the services are similar and some features are interchangeable. But these are completely different services in their own right.
Think of it this way. Comparing priority banking and private banking is like comparing Lebron James and Kobe Bryant: both are equally good but one is always going to be better than the other. This article will cover the obvious similarities and the subtle differences between private and priority banking services in Singapore.
What is Priority Banking?
Priority banking is intended for customers who have high net worth and/or transact large amounts with a bank. In other words, priority banking is meant for the rich and affluent. You don’t need to open a corporate bank account in Singapore to achieve this. Your money is going to be the one to do the talking for you.
Signing up for priority banking means that you're signing up to be a VIP of the bank. To qualify for priority banking service, your account needs to hold a certain amount of cash in your savings account, investments such as bonds and shares, or other assets.
What are the Benefits of Priority Banking?
One of the most tedious tasks is to line up for hours at the bank. But priority banking in Singapore is actually very attractive and enticing for a lot of people because of the benefits.
Here are a few benefits of signing up for a priority banking service:
Straight to the Counter Thanks to Priority Queueing
As a VIP of the bank, you're not going to be waiting in line for a long time. You go straight to the private counter and carry out your activities in minutes.
Enjoy Higher Interest Rates
Priority banking offers higher interest rates for their customers because they want you to stay with them and they want to make you happy.
Better Foreign Exchange Rates
Are you travelling a lot but still end up getting screwed up by the foreign exchange rates? With priority banking, you get the best foreign exchange rates possible. This allows you to shop overseas without having to pay high exchange rates. You can also purchase foreign currencies at a lower price.
Work With a Relationship Manager
One of the best perks of priority banking is that you get your own relationship manager, or just a manager, to help you with transactions and queries. They will also show you how you can grow your funds within the bank.
No More Bank Fees
In the long run, bank fees can be detrimental especially if you transact a lot and will affect your savings. But priority banking waives all banking fees, convenience fees, and all other fees.
The Best Priority Banking in Singapore
If you're looking for the best priority banks in Singapore, then you might want to consider these. This list is not arranged in any particular order and should be taken with a grain of salt.
We always encourage you to carry out your own research to find the Singaporean bank that will meet your banking needs.
If you need assistance with setting up a corporate bank account in Singapore, you can always get in touch with us. Talk to us on Whatsapp!
DBS Treasures
DBS is considered as one of the best priority banks in Singapore, having set up at least 11 priority centres all across the country.
You can qualify for a minimum of $350,000 in your bank account and enjoy VIP treatment from these 11 centres. You can also take advantage of their DBS Treasures Exclusive Safekeeping Centre, where you can store and lock up your valuables safely.
The centres also have their own free parking facilities and a bar. Fees on withdrawals abroad and telegraphic transfers are also waived as long as you're part of their priority banking program.
Minimum Deposit to Join: S$350,000 in total assets
Key Perks:
Access to DBS Exclusive Safekeeping Centre
Access to 3 Priority Centers across the island
Waived fees on withdrawals abroad and telegraphic transfers
UOB Privilege Banking
UOB Privilege Banking is similar to DBS where you only need a minimum of $350,000 to join. It is also one of the most exclusive priority bank accounts in the country. One of their most notable perks is their miles conversion. You get 2 miles for every $1 spent on retail and overseas dining, and 1.2 miles per $1 spent anywhere else.
Members will also enjoy weekday green fees at the Sentosa Golf Club. Upgrading to an annual membership will get you 60,000 air miles.
But the biggest perk they have is their higher than normal interest rates. Their rates are currently at 0.65% (as of Jun-22).
Minimum Deposit to Join: S$350,000 in total assets
Key Perks:
Higher miles conversion on retail and dining spent overseas
Weekday green fees at Sentosa Golf Club
OCBC Premier
OCBC Premier has lower capital requirements compared to UOB and DBS. You can sign up for their priority banking service for a minimum of $200,000 in assets. They also incentivize members if they sign up with more than $350,000 in total assets.
They offer a lot of investment-based incentives for their members.
Minimum Deposit to Join: S$200,000 in total assets
Key Perks:
Preferential fees and charges for selected transactions
Citi
There are priority banking services that Citi offers: Citi Priority and Citigold. The perks of their program aren’t as impressive as the others, but these are more than enough to motivate you to sign up for them.
For starters, you can withdraw cash from any Citibank ATMs in the world for free. You also get exclusive discounts on hotels and restaurants. There are also welcoming gifts for members as long as they meet the requirements.
Minimum Deposit to Join: S$70,000 for Citi Priority // S$250,000 for Citigold
Key Perks:
Preferential rates
Free cash withdrawal at any Citibank ATM worldwide
Exclusive discounts in hotels and restaurants
Maybank Premier Wealth
Fond of attending parties and events? Then Maybank Premier Wealth might be the best choice of priority banking in Singapore for you. Being an account holder of Maybank Premier Wealth means getting exclusive invites to the different events across the islands.
Members can also enjoy priority banking services in Malaysia and Indonesia. On top of that, it comes with a Maybank Platinum Card that gives you shopping and travel benefits.
Minimum Deposit to Join: S$300,000
Key Perks:
Exclusive invites to events
Travel benefits
Priority service in all Maybank branches (in and out of Singapore)
Standard Chartered Priority Banking
Standard Chartered Priority Banking or SCB Priority is known for offering bonuses whenever you sign up for their priority banking service. They’re quite accessible because of the S$200,000 minimum deposit.
Minimum Deposit to Join: S$200,000 minimum
Key Perks:
Bonus$aver account with multi-currency feature
SC Remit for free international money transfers
360° Rewards to earn points on card spending and across savings, investments, and loans
Singapore's robust economy, stable government, attractive tax rates, and comprehensive regulatory framework make it a prime choice for businesses looking to expand their reach.
At Piloto Asia, we offer dedicated services to assist you in opening a corporate bank account in this dynamic city-state. Our expert consultation, meticulous documentation assistance, and reliable liaison services with banks ensure a seamless process from start to finish.
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✅ Expert Consultation - Our team of professionals provides insightful advice tailored to your business needs.
✅ Documentation Assistance - We help you prepare all necessary paperwork, taking the stress out of the process.
✅ Liaison Services - We have established relationships with major banks, ensuring your application gets the attention it deserves.
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With Piloto Asia, opening a corporate bank account in Singapore is no longer a daunting task. Act now, and let us be your guide to business success in Singapore!
What is Private Banking?
Private banking is a collection of services offered by banks to HNWIs or high net worth individuals. These services are intended for one thing and one thing only: to grow the clients’ wealth. These services may cover specialized financing options, retirement planning, taxation solutions, and others.
It would not be appropriate to refer to private banking as wealth management because the former offers narrower services than the latter. Private bankers may offer strategies that will increase the value of the assets that the bank can access, while wealth managers develop broader strategies that will include all of a client’s assets.
Some Facts About Private Banking in Singapore
Private banking offers services such as assets management and investments to help grow your money. What sets them apart from regular banking is their ability to provide personalized banking services to meet their clients' financial goals.
Before you decide on whether or not to pursue private banking, there are a few things that you need to know about it:
Private Banking is Different from Priority Banking and Wealth Management
Private banking differs from priority banks and wealth management firms in terms of the scope of their services. Wealth management services or firms focus on optimizing a client's portfolio to get the highest returns possible.
Priority banking is a little bit similar to private banking, but has fewer services compared to private banking. For example, priority banking will not offer services that will directly affect your total assets.
Wealth management and private banking features may overlap one another and can be used interchangeably, but they are still very different from one another.
Private Banks Have Wider Range of Services
Services offered by private banks aren't offered by regular banks or priority banks. Notable private banks in Singapore will offer services such as wealth management and restructuring, and planning for retirement, estate, and succession.
These are just a few of the commonly-offered services by private banks here. Be sure to select a bank that has at least half of the services listed here.
Private Banks Have Exclusive Benefits
Private banks in Singapore often target wealthy individuals because they're guaranteed to be regular clients. In order to keep their clients happy, private banking offers exclusive benefits that will make it difficult for their clients to say no to.
For starters, they're offered private transactions and priority access, so no more waiting in line. Wealth managers and relationship managers also help guarantee that these clients are served immediately.
They also have discounted services or waived fees so they can carry out their transactions without losing a chunk of their money.
To some extent, private banks will also offer financial services such as private equity partnerships and exclusive hedge funds so their clients are incentivized to deposit more money into the account.
What are the Benefits of Private Banking?
Dedicated Private Bankers
One of the biggest benefits of private banking is having your own private banker, or a team of bankers, who are dedicated to helping you grow your wealth. Private banking makes it easy to carry out bank transactions when you have other people do it for you.
Personal Attention
HNWIs will appreciate the personal attention they get from private bankers and for a good reason. The banks they work with are eager to help their clients meet their goals, personal or otherwise. There are even concierge services, limousine services, and other features that make your banking experience personal.
Preferential Rates and Freebies
Clients of private banking also enjoy great discounts on hotel and travel bookings as well as access to a wide range of bank features, ranging from safe-deposit boxes to better miles conversions to free money transfer services internationally.
Some banks will even offer preferential rates for buying and selling currencies, interest rates on loans and credit cards, and higher investment rates.
What are the Cons of Private Banking?
Lower Interest Rates
Some private banks will often require you to maintain a fixed amount in your account. This can be done through a combination of cash and other assets. Your savings in the private banks are going to be in the millions, but one of the biggest drawbacks of enrolling in a private banking service is that the interest rates on savings are lower.
And for HNWIs the difference between 0.5% and 0.05% interest rates on savings accounts is just too big to pass on to.
Management Fees
Private banking also comes with higher management fees compared to regular banking, but this is part and parcel given that you’re actually working with senior management and/or private bankers to grow and manage your assets.
Some private banks may charge a percentage on the investments while others come in the form of monthly fees. This would be something that should be on your checklist for identifying the right private banks for you.
What is Eligibility for Private Banks?
Private banks in the island will require at least S$1 million in investable assets, and up to a maximum of S$7 million. But there are requirements that will differ from one bank to another, so be sure to check which bank will meet your needs.
The Best Private Banking in Singapore
UOB Private Banking
UOB is considered to be one of the most trusted traditional banks in the world, not just in Singapore. They provide the most attractive banking services to some of the affluent clients in Singapore.
For serious investors, the UOB Private Banking is ideal because of their investment approach. You also get a complimentary consultation with their senior advisers when it comes to discussing your investment portfolios.
$ to join: S$2 million
AUM (Assets Under Management): US$37 billions
Key Perks:
Access to dedicated private banker
Higher investment returns
Travel rewards and discounts
HSBC Private Banking
HSBC is a household name in Asia, so it comes as no surprise that it's on this list. HSBC Private Banking is known for their ability to work with multigenerational families all across the world and making sure that their wealth is preserved.
And yes, HSBC Private Banking offers trading and investment opportunities. The perks may not be as plentiful but it does incentivize active lifestyle and traveling.
$ to join: US$ 5 million
AUM (Assets Under Management): US$ 151 billions
Key Perks:
Global investment opportunities
Lifestyle privileges
Banking privileges
DBS
DBS Private Banking is one of the banks meant for investors. They boast of a wide array of investment products that are personalized to meet their clients’ individual needs. They offer funds, commodities, fixed income, equities, and even treasury products.
$ to join: US$1.5 million
AUM (Assets Under Management): US$400 billions
Key Perks:
Higher investment returns
Worldwide healthcare privileges
Property sourcing
Rental assistance
UBS
UBS is one of the most accessible private banks in Singapore with a minimum of $2 million in assets, covering business owners who want to move on to bigger things. UBS is also known for paving the way for sustainable investing.
$ to join: US$ 2 million
AUM (Assets Under Management): US$ 3 Trillion
Key Perks:
Access to private bankers
Investment programs
Portfolio monitoring
Standard Chartered Priority Private
For the businessman on the go, Standard Chartered Priority Private is the best choice for private banking solutions. Being a member of their private banking gives you access to more than 1,000 airport lounges in 130 countries and complimentary concierge services in more than 400 high-end restaurants around the world.
Every private banking client is assigned a senior relationship management team to help manage your investing and trading decisions.
$ to join: S$1.5 million
AUM (Assets Under Management): US$58.6 billions
Key Perks:
Access to senior relationship management
Preferential rates
Airport lounge access
Concierge access
Closing
Priority banking and private banking are two different sides of the same coin, each with its own benefits and features. Be sure to check with each bank listed here, or anywhere else, and find out whether they meet your needs, personal or otherwise.
Remember that there are no clear-cut banking solutions, so any one of them may be better than the other for you.
Be sure to do your own research before you sign up for any of them. Remember that one bank will always be different from the other.
If you need assistance in setting up your business bank account in Singapore, Piloto Asia can help you.