Is private banking really worthwhile?

[arctician]

I see ppl putting their deposits with private banking arm of DBS UOB etc for the limo services and complimentary lounge..are there any other tangible benefits besides the preferential forex rates?

any scenarios where an individual can get rejected even if he or she qualifies for the AUM?

 

[aeriele]

I think there is preferential rate for housing loan as well

 

[cybercom8]

one key benefit...served by chiobus

 

[Majestic12]

When the prospect fails the due diligence or enhanced due diligence check.

I see ppl putting their deposits with private banking arm of DBS UOB etc for the limo services and complimentary lounge..are there any other tangible benefits besides the preferential forex rates?

any scenarios where an individual can get rejected even if he or she qualifies for the AUM?

 

[ken136]

Some credit cards also have limo services and complimentary lounge.

I bet whatever "preferential" forex rates they give also cannot beat my interactive brokers.

"Direct access to interbank forex quotes, no hidden price spreads, no markups, just transparent low commissions" (0.2 basis points)
https://www.interactivebrokers.com/en/index.php?f=759

And there's zero TT charges, because I transfer my SGD to their local account, then they transfer whatever currency to my account overseas.

 

[Perisher]

Some credit cards also have limo services and complimentary lounge.

I bet whatever "preferential" forex rates they give also cannot beat my interactive brokers.

"Direct access to interbank forex quotes, no hidden price spreads, no markups, just transparent low commissions" (0.2 basis points)
https://www.interactivebrokers.com/en/index.php?f=759

And there's zero TT charges, because I transfer my SGD to their local account, then they transfer whatever currency to my account overseas.

Interested to know how this works as I'm flying to europe.

So you have an IB account overseas? Can withdraw foreign currency in europe?

 

[crossfitter]

I see ppl putting their deposits with private banking arm of DBS UOB etc for the limo services and complimentary lounge..are there any other tangible benefits besides the preferential forex rates?

any scenarios where an individual can get rejected even if he or she qualifies for the AUM?

Well, you are supposed to have access to more investment products as well, not that the products they are pushing provide an above average market return. Banks are also very wary of money laundering (eg 1MDB) as well as US persons opening accounts (to escape US Tax) so if you can't explain the source of your funds or provide a letter of reference from another bank, its very likely the bank would reject your application.

 

[Shiny Things]

Interested to know how this works as I'm flying to europe.

So you have an IB account overseas? Can withdraw foreign currency in europe?

Nope. IB's just a brokerage account - you can fund it in pretty much any major G10 currency, and withdraw from IB to bank accounts in most major countries, but you have to actually have a bank account in the place you're trying to withdraw it. It's not like they just give you a debit card, unfortunately.

 

[shoppingtravelling]

I find DBS treasures privileges are good if you travelling often.

Most credit cards often free limo TO the airport, but DBS treasures can arrange for TO and FRO airport.

The DBS treasures lounge in the airport is solid. better than krisflyer's business class. They will serve you food and drinks and not crowded. You can book for massages also (in advance) before you fly.

The rest like priority queue for angbao, free lounge to drink coffee etc are similar to what the rest of the priority banking.

Just for info, I think there is a difference between private and priority banking.

 

[wondrdoggie]

I see ppl putting their deposits with private banking arm of DBS UOB etc for the limo services and complimentary lounge..are there any other tangible benefits besides the preferential forex rates?

any scenarios where an individual can get rejected even if he or she qualifies for the AUM?

I seriously don't think people open a private bank account to enjoy limo or lounges. It's more for access to certain non retail products, better rates (loan, fx) and help to manage their wealth. There is a difference between managing/ investing tens or hundreds of thousands and millions.

Peripheral benefits like lounges, free events/meals and hand delivered angpaos and cny goodies are just pluses.

 

[Azalea]

It's just a form of prestige..

 

[limster]

Interested to know how this works as I'm flying to europe.

So you have an IB account overseas? Can withdraw foreign currency in europe?

You need to have a overseas bank account and you use IBKR to transfer to that account, sort of like Worldfirst, but cheaper (but IBKR - only 1 free transfer per month).

I just tested a UK GBP transfer, confirm no charges from IBKR or receiving bank.

Another thread mentioned Australia there are no minimum balance bank accounts available for foreigners to open... plan to open one as well

 

[alocacoc]

I see ppl putting their deposits with private banking arm of DBS UOB etc for the limo services and complimentary lounge..are there any other tangible benefits besides the preferential forex rates?

any scenarios where an individual can get rejected even if he or she qualifies for the AUM?

You can compare the perks of the private banks as one of your selections criteria IF you can only join 1. But the most important criteria is your RM.

I compared 2 before i decide. 1 is obviously a shark, marking up bonds at 1-2%.
My selected RM is honest and promise me at .25 sales charge. He has been trying to test the bank limit by reducing it even lower.

Private banks are worthwhile because you can get better saving rate(HYA account) or negotiate for a better rate , by simply moving your cash from bank to bank to participate for the promotion. You are being offer many types of investment products and networking opportunities too.

As long as you can prove your sum or AUM to be legit, they have no reason to reject you.

 

[limster]

I compared 2 before i decide. 1 is obviously a shark, marking up bonds at 1-2%.
My selected RM is honest and promise me at .25 sales charge. He has been trying to test the bank limit by reducing it even lower.

You have not posted an apples to oranges comparison. You say bank 1 has a markup, it seems like it is the bid-offer spread.

Then you say bank 2 has 0.25% sales charge, but you never mention whether the spread is also 1-2% or whether the spread could be worse, like 4-5%.

Then you never ask whether your 0.5% wrap fee will be waived at the end of the year?

 

[alocacoc]

You have not posted an apples to oranges comparison. You say bank 1 has a markup, it seems like it is the bid-offer spread.

Then you say bank 2 has 0.25% sales charge, but you never mention whether the spread is also 1-2% or whether the spread could be worse, like 4-5%.

Then you never ask whether your 0.5% wrap fee will be waived at the end of the year?

You are right. sorry for the unclear info.
What i did was request each RM to propose a capital preservation portfolio. There were 4 identical bonds from their recommendation. By comparing the 4 bonds , the Shark proposal was priced 1-2% higher for each bond. He didnt know i was getting quote from other RM. When i asked him for the sale charge, he told me 1% was the lowest he can offer.

So , the spread he quoted already higher by 1-2% and on top of that, theres sale charge .After i told him about .25 im getting from other bank, he said only if i invest more. I just didnt bother to continue negotiating with him. I just feel that if he lower the charges for me now, when i want to sell, i will be at his mercy.

Of course i choose the lowest priced proposal and the promised .25. I know its hard to verify eventually because its OTC but i have my solid reason to know that i can trust him.

Regarding wrap fee, he told me i have none and theres no account service fee as well. Im only 6 mths into private bank, so far, i dont see any charges from my statement. Im still exploring and learning, sharing just what i know.

 

[wondrdoggie]

You are right. sorry for the unclear info.
What i did was request each RM to propose a capital preservation portfolio. There were 4 identical bonds from their recommendation. By comparing the 4 bonds , the Shark proposal was priced 1-2% higher for each bond. He didnt know i was getting quote from other RM. When i asked him for the sale charge, he told me 1% was the lowest he can offer.

So , the spread he quoted already higher by 1-2% and on top of that, theres sale charge .After i told him about .25 im getting from other bank, he said only if i invest more. I just didnt bother to continue negotiating with him. I just feel that if he lower the charges for me now, when i want to sell, i will be at his mercy.

Of course i choose the lowest priced proposal and the promised .25. I know its hard to verify eventually because its OTC but i have my solid reason to know that i can trust him.

Regarding wrap fee, he told me i have none and theres no account service fee as well. Im only 6 mths into private bank, so far, i dont see any charges from my statement. Im still exploring and learning, sharing just what i know.

Bonds sales charge should be 0.20, so you can negotiate a little more. and hope you also negotiated for waiver of custodian fees, bank spreads for loans and fees for equities/funds. But you are on the right track to compare rates.

 

[crossfitter]

You are right. sorry for the unclear info.
What i did was request each RM to propose a capital preservation portfolio. There were 4 identical bonds from their recommendation. By comparing the 4 bonds , the Shark proposal was priced 1-2% higher for each bond. He didnt know i was getting quote from other RM. When i asked him for the sale charge, he told me 1% was the lowest he can offer.

So , the spread he quoted already higher by 1-2% and on top of that, theres sale charge .After i told him about .25 im getting from other bank, he said only if i invest more. I just didnt bother to continue negotiating with him. I just feel that if he lower the charges for me now, when i want to sell, i will be at his mercy.

Of course i choose the lowest priced proposal and the promised .25. I know its hard to verify eventually because its OTC but i have my solid reason to know that i can trust him.

Regarding wrap fee, he told me i have none and theres no account service fee as well. Im only 6 mths into private bank, so far, i dont see any charges from my statement. Im still exploring and learning, sharing just what i know.

which bank are you using? A local pb that I know of charges 0.15% custodian fees off your portfolio excluding cash.

 

[alocacoc]

Bonds sales charge should be 0.20, so you can negotiate a little more. and hope you also negotiated for waiver of custodian fees, bank spreads for loans and fees for equities/funds. But you are on the right track to compare rates.

Bonds sales charge should be 0.20, so you can negotiate a little more. and hope you also negotiated for waiver of custodian fees, bank spreads for loans and fees for equities/funds. But you are on the right track to compare rates.

Manage to get the sale charge for bond below 0.2 .
I need to check regarding custodian fees, but pretty sure my RM already waive off those fees that can be waived.
Loans like portfolio loan? Is 0.5+sibor lowest or can reduce further ?

 

[arctician]

I compared 2 before i decide. 1 is obviously a shark, marking up bonds at 1-2%.
My selected RM is honest and promise me at .25 sales charge. He has been trying to test the bank limit by reducing it even lower.

i have tried SCB and CIMB..both have no custodian fees for otc bonds

SCB qutoed me 0.18% and CIMB none..but i believe latter built it through higher spread..both are priority and preferred..not pc

tried to find out more on dbs pc..only advantage is the multi-currency account which allow you to hold foreign currency at no charges...above $50K also allow you to get quoted rate vs. mkt rate....commission for stocks also not very competitive..similar to scb 0.18%..RM also v mediocre


i think uob high yield still best

 

[wondrdoggie]

Manage to get the sale charge for bond below 0.2 .
I need to check regarding custodian fees, but pretty sure my RM already waive off those fees that can be waived.
Loans like portfolio loan? Is 0.5+sibor lowest or can reduce further ?

Do check about the custodian fees, they always try to charge but if you press, they should waive. I have experiences with a handful of private banks, they all waive.

I meant general loans in whatever currencies. Usually quoted as bank spread + cost of funds. If your bank spread is 0.5, it's very good! UBS is known to be very stiff in their spreads.

Sounds like you got an rm that fights for you.