What's the best bank account for high net worth individuals?

High-net-worth individuals (HNWIs) often require specialised services to help them manage, protect, and grow their wealth. This extends to their bank accounts. As they search for the best bank account to suit their needs, several options are available.

Private banking is one, and is usually an appealing choice because it’s explicitly tailored to high-net-worth clients. Private banks offer personalised, one-to-one services, favourable terms, and exclusive lifestyle perks.

Meanwhile, a dedicated savings platform, like Insignis, can help HNWIs diversify their cash holdings while providing access to competitive interest rates, all through a single application. 

It’s important to note that using a cash management platform doesn’t override the advantages of saving with a private bank. Instead, it allows diversification of funds across a range of providers, which may include one or more private banking institutions.

To help you get to grips with your options, in this article, we:

• Explore what private bank accounts offer
• Outline how Insignis can benefit HNWIs
• Share some tips for how to choose the correct bank account for your financial needs

Disclaimer: The information provided in this article is for informational purposes only and should not be considered as financial advice. We recommend consulting a qualified financial adviser or professional for guidance tailored to your individual circumstances. Insignis does not offer personalised financial advice, and all decisions regarding your finances should be made with careful consideration of your specific needs and goals.

What private bank accounts offer

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In addition to the standard products and services of a personal bank, private banks offer a range of advantages to help meet the complex needs of HNWIs, including:

• Premium customer service: HNWIs are unlikely to be left on hold when they call their private bank. Instead, they’ll have a direct line to a dedicated relationship manager, who will offer tailored financial advice, develop wealth management strategies, and closely monitor the performance of their accounts and investments.
• Higher deposit and transaction limits: Many private bank accounts allow HNWIs to deposit, move, and withdraw much larger sums than a standard bank account. This allows them to manage their wealth more efficiently and respond quickly to liquidity events and investment opportunities.
• Favourable lending terms: When borrowing money through a private bank, HNWIs can benefit from more flexible lending terms. These can include higher credit limits and lower interest rates on mortgages and personal loans.
• Multi-currency and international banking: HNWIs may have business interests or assets overseas, and private banks make it easier for them to manage, receive, and transfer large sums in multiple currencies.
• Tax planning and optimisation strategies: Many private banks offer their clients specialist tax planning services to help them minimise their tax liability and maximise returns.
• Estate and succession planning: HNWIs may have generational wealth or want to pass their newly acquired fortune to their children or grandchildren. Either way, private banks can assist them with retirement, succession, and estate planning, as well as guiding portfolio management, asset allocation, and inheritance tax planning.
• Exclusive lifestyle benefits: A staple of the private banking sector, HNWIs can access concierge-style services ranging from travel planning and booking assistance to lifestyle benefits, including exclusive memberships and discounts on luxury goods and services.

The case for a savings platform: How can Insignis complement private banking and benefit HNWIs?

Banking and saving with a private bank has plenty of plus points. However, there are also some advantages to running this relationship through a savings platform like Insignis.

1. Diversification to reduce risk

The UK’s Financial Services Compensation Scheme (FSCS) is designed to protect savings in the event of a bank or building society's failure, guaranteeing up to £120,000 per person, per institution (for the purposes of FSCS protection, banks or building societies in the same banking group are considered a single institution).

By spreading funds across several different banks (each with distinct banking licences), you can optimise FSCS protection and reduce concentration risk. 

For example, the average deposit on our platform is £400k. If you split that up and deposit no more than £120,000 in each institution, you can protect the entire amount under FSCS rules, preventing loss should one or more institutions collapse.

‍2. Access to market-leading interest rates

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In addition to FSCS protection, our platform provides access to a carefully selected range of rates. You can choose from thousands of market-leading savings accounts and, if you save with an easy access account, seamlessly switch between them when rates change. 

‍3. A single application with multiple deposit options

Instead of managing multiple banking relationships, each with its own login, password, and eligibility criteria, you can distribute funds through a single, secure platform.

How to choose the right bank account for your financial needs

If you’re an HNWI, there’s no one-size-fits-all guide to selecting the “right” or “best” bank account.

Here are a few things you’ll need to consider when shortlisting potential bank accounts:

• Assess your personal financial goals: Work with your financial adviser to determine your short—and long—term financial objectives. Think about what you’re trying to achieve and which products and services can help you achieve it. You should also consider how much access you require to your funds and your risk appetite when saving and investing. 
• Understand fees and charges: Take the time to review all fees and commissions. At Insignis, our only charge is the annual account service fee, based on the total deposit, due monthly in arrears.
• Weigh up the perks and benefits: Finally, consider which perks and benefits are most attractive to you. While the bank’s services, products, and performance should form the core of your decision, gaining access to your favourite sports team’s matches (for example) can be a welcome bonus. On the other hand, optimising your FSCS coverage with a savings platform might matter more.

Ultimately, HNWIs can benefit from private banking services to manage, grow, and protect their wealth while accessing exclusive perks and benefits. However, there are additional benefits to managing these relationships through a savings platform. The best bank account will depend on your unique financial situation and your short- and long-term objectives.

If optimising your FSCS coverage and accessing market-leading rates is important to you, ask your financial adviser about the Insignis savings platform today. Find out more here.

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