What Banks Do Millionaires Use
While bank accounts are something pretty much anyone has these days, only some are fit to handle the wealth of the rich. So, what banks do millionaires use? If you are curious to learn where the other half banks, you’ve come to the right place. We’ve listed the top five banks that millionaires often choose, in no particular order. A word of caution, banking with one of them is not guaranteed to make you a millionaire, nor would it necessarily be the best option for you. It pays to always do your research and choose wisely.
Where Do Millionaires Keep Their Money?
Statistics on millionaires show that rich individuals tend to turn to private banks to safeguard their financial assets.
These institutions provide a broad range of financial products, services, and knowledge under one roof. Aside from that, private banks offer a plethora of benefits, including more favorable terms and rates. Moreover, private banks provide the same banking services as you will find at personal banks, including credit cards, savings accounts, checking accounts, and so on.
The Most Popular Banks for Millionaires
Let’s go over some of the most popular private bank choices for millionaires.
1. JP Morgan Chase (Private Bank)
This bank is one of the oldest and most well-known banks in the United States. It’s also one of the largest, with $3.955 trillion in assets as of March 2022.
While it is considered one of the best, if not the best bank for millionaires, J.P. Morgan Private Bank serves a wide range of customers with various financial requirements and goals. As such, they provide a variety of services, which include planning and advice, investing, lending, trusts, and estates. They also offer banking services. Individual and company accounts are both available.
Some of the benefits include no fees (even overdrafts and out-of-network ATM withdrawals are refunded), specialized teams, and reduced borrowing costs.
On the other hand, one of Chase Private Client’s drawbacks is that it isn’t accessible in all areas. They currently have offices in just 23 states.
2. Bank of America (Private Bank)
Bank of America Private Bank serves as the private banking section of Bank of America. It’s also one of the prime providers of bank accounts for millionaires, but only those with at least $3 million in liquid assets can participate in the program.
They provide a variety of services that are not typically furnished at private banks, including asset management, long-term financial planning, niche asset management, and art services.
The firm also offers a special service called the ‘Philanthropic Giving Strategy’ for high-net-worth and ultra-high net worth individuals who want assistance in developing a giving plan that maximizes their social impact.
However, account fees, sluggish service, low interest rates, and lack of customer care from several bank personnel are among the notable disadvantages of using Bank of America.
As of December 31, 2021, this bank has total assets of $3.169 trillion, which also makes it one of the largest in the US.
3. Citigroup (Private Bank)
Citibank’s private banking unit is Citibank Private Bank. It’s one of the top banks for rich people and only the wealthy may use its services.
This bank is slightly smaller than the previous two, with around $231 billion in assets as of the last quarter of 2021.
Deposits and retirement accounts are available to eligible clients at most other banks, but there are also several specialized products and services. These include aircraft financing, investing, escrow and agency services, etc.
Citigroup also has a large network of ATMs and branches. It also allows online banking transactions using your Citi checking account, has an app for mobile banking, and has no minimum opening deposit requirement for any checking account, to name a few.
The fact that it does not allow you to open a savings account or a checking account unless you create a package including both is one of its cons. In addition, their CD rates are significantly lower than those of other national banks. And although you’re able to connect an eligible deposit account to cover overdrafts, you will still lose money.
4. Wells Fargo (Private Bank)
The Wells Fargo Private Bank is a financial service for high-net-worth individuals that demand customized financial solutions.
The bank has a team-based approach in place, which means that the millionaires bank account will be managed by the entire staff. Clients may benefit from having various skills tapped when administering their money due to the fact that this team works together.
Clients also have access to special events and experiences, as well as market knowledge that can help them anticipate what’s next.
As of December 31, 2021, Wells Fargo has $1,954.901 billion in assets.
Wells Fargo provides a comprehensive range of products and services, including certificates of deposits, mortgages, money market accounts, checking accounts, and other personal loan services.
Its size and variety of services are among Wells Fargo’s strengths. However, one of its disadvantages is its low APY which is below the national average.
5. HSBC (Private Banking)
Formerly known as Global Private Banking, HSBC Private Banking combines the bank’s banking, investments, and wealth management know-how to provide high-net-worth individuals and wealthy bank accounts holders a comprehensive financial management service.
HSBC has a lot of advantages, including no minimum deposit requirement for checking or savings accounts, readily waived monthly account maintenance fee, a minimum APY balance of $1, no minimum balance requirement or monthly charge for Everyday Savings Account, incentives for new customers and referrals, and worldwide financial services.
As with most banks, HSBC has its downsides, such as low APYs on interest-bearing checking accounts, limited to only eight states and there are fewer than 150 branches in the District of Columbia, you can’t reach their ATMs’ number online, and HSBC and HSBC Direct aren’t linked online.
So, there you have it — some of the best banks for millionaires. As you can see, each has its advantages and disadvantages. If you are considering any of them, do your homework to make sure it will fit your needs.
How do millionaires manage their money?
There is no single answer to this question as each millionaire has different methods and strategies for managing their money. However, some common methods include investing in stocks, real estate, and other assets, as well as saving regularly into a high-yield savings account or a retirement account such as a 401(k) or IRA.
Some millionaires also work with financial advisors to help them make the best decisions for their unique situation.
How many bank accounts do millionaires have?
Currently, there is no literature or published material that could give an exact answer to this. However, statistical reports show that, on average, Americans hold 5.3 bank accounts. Based on this data, it is safe to assume that millionaires have at least five bank accounts.
What bank insures millions?
If you’re wondering what banks do millionaires use to insure their millions, there are currently no banks that insure millions in the US — the Federal Deposit Insurance Corporation is willing to protect up to $250,000 only per depositor, which is why millionaires need to have multiple bank accounts. This allows them to secure their millions instead of the limited FDIC-covered amount.