Private Banking | Discover How You Can Do Private Banking With Just US$ 100,000
Private banking: 5 questions you need answers to before you act. Can you have private banking in UAE, services, confidentiality, how to choose & cost
Private banking: The term “private banking” refers to customer service that is more personal, via dedicated relationship managers, when compared to mass-market retail banking.
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Private banking can give significant benefits by way of investment planning, fund transfers, credit references and above all confidentiality.
Private banking offers an “inside advocate” – the confidential banker – whose mission is to help his or her clients make easy use of the bank’s products and services.
Historically private banking has been viewed as very exclusive, only catering to high net worth individuals with liquidity over $1 million. It is now possible to open private banking accounts in UAE banks with $100,000 for private investors.
If you know that an offshore company with an offshore bank account helps in your purpose of growing and protecting your wealth then you must also know about the next step – private banking in Dubai.
5 Questions you need answers to before you act
1. Can you have private banking in the United Arab Emirates (UAE)?
Yes. Private banking is not limited to just Switzerland or Austria. A discreet UAE bank account for private banking purposes can be set up by forming an offshore company in UAE or elsewhere, and opening an account in its name. There are many banks in the UAE which are good at providing services in private banking even if you want to start with only US$ 100,000.
In the UAE like all over the world, increasingly medium net worth individuals – and not just the very rich- own bank accounts via an offshore company.
In UAE private banking provides a range of services such as wealth management, savings, inheritance, and tax planning for their clients. Private banking is sometimes also referred to as the wealth management part of banking.
Varal CEO And Managing Director
2. What services are offered?
1. The main service is advice and wealth management. The days are long gone when you could phone your high street bank manager for a chat about your investments.
These days, you are more likely to be routed to an overseas call center, but the personal banker will normally be your adviser, who can help you, or find you a specialist who can.
This could include investment advice, particularly on overseas investments, and help with setting up offshore accounts for special overseas transactions, or for tax benefits where they apply.
Personal bankers also provide access to specialist investments such as private equity, hedge funds, currency funds, and derivatives – normally the reserve of institutional and sophisticated investors.
2. You will be able to obtain advice on compliance with international law, such as money laundering and currency export regulations, where these apply.
In order to set themselves apart, some confidential banks, offer you advice on esoteric investments, such as racehorses, works of art, antiques, wine, bullion commodities and foreign property purchase in exotic locations.
3. In private banking, you will also be able to get advice on loans and mortgages, including those on overseas property, and even boats and aircraft.
Having a relationship with a private banker will provide you with a route to transactions that need approval from overseas regulatory authorities; for instance, transfers of cash or artworks, which the bank should be able to arrange for you.
4. Private bankers in Dubai should also be able to help with providing you with credit references, for instance when raising credit in a country where you have no previous credit history or assist you with other routes to raising cash that you need for a particular transaction.
3. Is private banking really confidential?
While the popular image of discreet banking is one of the secretive Swiss banks, modern compliance, tax and money laundering rules mean that you can’t be totally anonymous.
Private banking in Dubai is however comparatively discreet. You should receive a significantly more personalized standard of service, with a greater degree of discretion than with a standard banking relationship. Your dealings with your private banker are expected to remain just that. Private.
4. How do you choose a private bank?
Find a name you trust. Either because it is part of a big international group with a reputation to lose if anything goes wrong, or one recommended to you by someone whose opinion you respect.
You can do most of your transactions on the phone, fax, the Internet or through an ATM card. Also, make sure that the bank has premises and is not a virtual bank.
If you are investing large amounts, have an initial meeting with the person who will be your private banker, and test out the chemistry; this is going to be a frequent and intimate relationship. You need someone you get on with, trust, and who is sympathetic to your needs and concerns.
Naturally, review the range of services and expertise available via personal banking. Does it offer a good service in the areas you will want to use? Have a look at some of its research and see if its investment record is successful. There are many banks in the UAE particularly in Dubai which are good at private banking and meet the above standards of reliability.
5. How much does it cost?
Expect to pay for the service you want.
Confidential banking is unsurprising, not cheap, although you will find that the more services you use with a private banker, the cheaper the service will be as discounts will apply if you use more than one service.
Check carefully how fees will be charged and if they will be cost effective for you.
Make sure that everything is included, and satisfy yourself that you will be paying a fair price for the services you are asking for.
Generally, fees for investment assets managed on a discretionary basis, are based on the size of the assets, while on an advisory basis, the fees are linked to transactions. For trusts, charges are time-based, while on loans the fee charged would be a margin.
When choosing a private banker, make sure you are not paying for services you don’t need.
The advantage of confidential banking is that its wide range of services should be saving you money, not cost you. If you don’t need a full service, go to a bank that lets you choose from a menu when calculating your fees.
Always make sure that you have asked for internet banking specifically in case you want it.
Varal Team
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