The appeal of a private bank

Private banks have long been surrounded by an air of prestige. But is the service they provide worth the extra cost?

Young female client with debit card talking with bank teller in bank
(Image credit: Hero Images Inc)

If you're asked to picture a private bank, the things that spring to mind may be marble halls, subterranean vaults, hushed voices and perhaps Swiss accents. Today's private banks are, of course, more high-tech but the reasons for people using private banks don't seem to have changed much over the years. Some might use a private bank because they consider it to be prestigious; some might want the high-class service; while others like the perceived discretion.

As the word "private" implies, this type of bank has long held a reputation for privacy and secrecy. Although much of this has changed since the cultural shift towards a more transparent digital-banking system, some banks remain strictly private. As the PR person of one well-known bank told me, "the nature of the discreet relationships we have with our customers means we don't disclose information on levels of wealth or services", and therefore have "no wish to appear in your article". But is being a client with a private bank worth the high fees, or is it simply a tax on snobbery?

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Lucy has previously written for the iPaper and MoneyWeek, writing about a variety of financial topics such as funds, the economy and bank accounts.