This Type Of Banking Is A Sneaky Sign Someone Has A Lot Of Money

Some people flaunt their wealth, while others prefer to keep it under wraps. But even if someone goes to great lengths to hide the fact that they have a significant bank roll, there are still a few sneaky signs that give away the fact that they can basically afford to do what they want, or at least do what many people can only wish they could afford to do. One of the sneakiest ways, yet definitely a dead giveaway, is the way they bank. Most people have accounts at the local neighborhood bank or credit union, either with small-name banks or nationwide chains, and some choose to do their banking completely online, and although a small percentage of Americans don't have a bank account at all, about 6%, a select few lucky ones use a different banking approach: private banking.

The wealthy use a number of strategies to protect and grow their fortunes, and private banking plays right into that strategy. While flaunting the use of these services is seldom seen, if you happen to discover that someone you know uses this ultra-specific approach to banking, chances are they have a significant net-worth that requires the specialized touch of a banking team designed to work with elite customers and their massive fortunes.

Private banking is a specialized banking service offered to clients with a significant net worth, often in the ballpark of at least several hundred thousand dollars, if not higher. These services are offered only to qualified customers who are able to make the minimum (although quite large) initial deposits and require the services of a highly trained banker accustomed to managing significantly large portfolios. They are not heavily advertised, as their clientele consists of a very specific segment of the population and most people looking for a place to bank won't be able to afford the minimum initial deposit, which can range from $150,000 to north of $1 million.

The services offered with private banking are extensive, as the bankers involved are expected to handle large portfolios for clients intent on not only protecting their wealth but increasing it. Services typically include access to a dedicated support team that actively manage individualized client portfolios, investment management, tax planning, estate planning, trust planning, tax-advantaged wealth management services, and much more. There are a number of banking institutions offering private banking services in the United States, but the most prominent names are Morgan Stanley, JP Morgan, and Bank of America. Other well-known names in the industry include UBS, Citigroup, BNP Paribas, Goldman Sachs, Julius Baer, Raymond James, and HSBC. While many of these institutions also offer regular banking services, their private banking services are reserved for an elite portion of their clientele.

How someone banks is a very private matter, often not one you will easily notice. And not everyone who is ultra-wealthy flaunts their status. In fact, some go to lengths to hide it (Warren Buffet even once famously instructed his daughter to bank like everyone else). While Buffet's strategy might have been to teach his kids about financial responsibility, it is a testament to the fact that someone's banking habits may not be a dead giveaway to their wealth. If you are really curious about someone's financial stability, there are a few other clues you can keep an eye out for. For example, someone who doesn't seem stressed about bills or being able to afford things may have a great deal of stability that affords them the luxury of being able to whip out the debit card or write a check whenever needed, rather than needing time to figure out how to handle a large or unexpected expense.

Those who became ultra-wealthy, as opposed to those who inherited wealth or come from money, tend to share many habits that may give away their secret. They have a different approach to life, often prioritizing wellness and pursuing opportunities to grow their wealth. They value high-quality goods and meaningful experiences but don't spend their money frivolously, and you won't likely see them panicking about things like bills and the price of things. If you look out for these subtle clues, you don't need to ask them where they bank to confirm they are doing well in life — but there is a good chance they are taking advantage of the benefits of private banking.