From Coutts to Hoare – where the elite keep their money

The privilege of having a debit or credit card from a private bank in your purse or wallet is reserved for those with a few million pounds in an investment portfolio.

Those who can satisfy the eligibility criteria will receive full red-carpet treatment – or rooftop treatment in the case of Coutts which has a fully working kitchen and private chef on the terrace of its London office on the Strand. You also get your own dedicated banker who you can call directly – and they’ll know you by name. 

Private banking remains the preserve of the very wealthy, however, because of the strict eligibility criteria which differs from bank to bank. 

High street banks also offer private banking services. Barclays Private Bank offers banking to those who have at least £5m to invest. At HSBC Private Bank you’re eligible if you have investment or borrowing needs of £1.5m or more. Santander Private Bank is for those who earn over £250,000 a year or have savings or investments of at least £500,000.

Private banking

C Hoare and Co requires £3m in deposits and £1m of lending while at Coutts the requirements are a little lower, at £1m of investable assets or borrowing, or £3m in savings in order to bank there. 

At SG Kleinwort Hambros (owned by the French bank Société Générale), you need £2m or more in investable assets.

Most of these accounts come with hefty annual fees. At C Hoare and Co you’ll pay £50 a month and at Coutts it’s £900 a year. But these elite accounts are no ordinary accounts, of course.

There’s much more to a private bank than an elite bank account, having a prestigious card to pay with at dinner, and having a concierge service on speed dial. Private banking typically provides a single coordinator for most banking and financial needs.

Having a private banker on hand means you have access to other services such as wealth management where they can open the door to exclusive investment opportunities, and lending large amounts for complex property purchases, perhaps.

There are often special events held for clients which could prove good for networking – for business or pleasure.

Rory Scott, founder of Comparewealthmanagers.com, says: “If you just want banking services – or the prestige of handing over a private bank card when you pay for something – then the annual charges might be more than you need to pay for what you really need.

“Where private banking comes into its own is when you have complex borrowing needs. 

“For example, if you are developing a property and need to raise funds for the development a private bank can leverage against the equity that you have in an existing property or against your investment portfolio if you have one.”

Despite the strict criteria enforced to maintain a customer base of high society, you can now access private banking with less than a million under your belt. 

To become a client at Hampden & Co – which became the first new UK private bank in 30 years when it formally opened its doors to clients in 2015 – you need £350,000 to deposit or to borrow £500,000. 

At Hampden there’s no annual fee to pay, however clients will pay 30p for each cash withdrawal, as well as debit and credit transactions.

High street banks

High earners also have the option to access premium bank accounts from high street banks promising a superior experience to standard current accounts. 

HSBC’s Premier account is reserved for those with an annual income of at least £75,000 (paid into your HSBC account) and either a mortgage, investment, life insurance or a protection product with the bank. Alternatively if you have savings or investments of at least £50,000 with HSBC UK you can have a Premier account. 

There’s no fee and benefits include worldwide travel insurance from Aviva for those under the age of 70. This also covers dependents up to 18, or 23 if they are in full-time education as well as winter sports. 

As a Premier customer you’ll also have access to a choice of two credit cards, both of which give you reward points when you spend and discounted airport lounge access and hotels among benefits.

Barclays Premier account requires a minimum annual salary of £75,000 or £100,000 in savings or investments with the bank. There’s no fee for this account which comes with a range of perks like discounts on travel, dining and experiences such as spa treatments. 

You will also get exclusive rates on mortgages and savings accounts and access to the premier team 24/7 by phone.

To open a NatWest Premier account you need to earn £100,000 (or £120,000 joint income) paid into your NatWest account. Alternatively you can have £100,000 savings or investments or a £500,000-plus mortgage with NatWest.

There are three Premier accounts to choose from. Premier Select is free and offers the very basics including fee-free spending on your card overseas and access to the Premier banking team.

Premier Reward costs £2 a month and on top of the Select benefits you can earn cashback of up to £10 a month by using direct debits and logging into the app each month. 

The Premier Reward Black costs £31 a month and for your money you’ll get a 24/7 concierge service, airport lounge access, and worldwide travel cover on top of the other benefits.

NatWest is currently offering £200 to switch to any Premier account, using its switching service.

Santander Select is a service you can bolt onto your Santander current account if you pay in monthly income of at least £5,000 or you keep £75,000 in any Santander account (savings, current account, or investment). 

This is free and gives you access to a priority phone service, access to a World Elite credit card which comes with airport lounge access and concierge services (for a monthly fee of £15). Select customers also get discounted will writing and lasting power of attorney services.