Being wealthy often opens doors to services the middle class simply doesn’t have access to, from VIP concierge services for travel to private dining rooms at exclusive restaurants. It allows them access to certain banking privileges as well.
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Here’s a look at the ways the rich bank differently than the average American.
They Use Private Banks
Many wealthy Americans utilize private banks.
“Private banks cater to the wealthy by offering unique investment opportunities and specialized services, like art advisory and financing, philanthropic strategy development and specialized wealth management,” said True Tamplin, certified educator in personal finance and founder of FinanceStrategists.com.
A middle-class American simply would not have access to these banks.
“Access to private banking services for the wealthy typically requires millions in assets,” Tamplin said. “For example, Bank of America’s Private Bank demands at least $3 million, while Morgan Stanley’s private wealth management services require $20 million.”
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They Have Access to a Dedicated Suite of Professionals
Rich Americans often have a dedicated financial team that caters to their specific banking needs.
“Wealthy clients receive highly personalized banking services. This includes dedicated financial professionals who are available around the clock to handle all banking needs and provide financial advice,” Tamplin said. “This level of service ensures that the banking experience is tailored to the specific needs and preferences of the client, offering a high degree of privacy and exclusivity.”
They Provide Their Own Financing
Wealthy Americans don’t use the traditional methods to get a loan.
“The ultra-rich use strategic debt and asset leveraging, essentially financing themselves,” Tamplin said. “This approach contrasts with the average individual seeking loans from conventional banks.”
They Get VIP Services Through Their Bank
Wealthy Americans often get access to more services through their bank than the average American.
“Services offered to wealthy clients often include comprehensive estate planning and enhanced security measures to protect their assets, which ensures that their wealth is protected for future generations,” Tamplin said.
They Use Accounts That Come With Extra Perks
Rich Americans often get extra perks via exclusive credit cards or their use of private banks.
“Some exclusive perks include concierge services, premium credit cards and preferential loan terms,” said Erika Kullberg, personal finance expert and founder of Erika.com. “A high creditworthiness is required in addition to having a substantial financial profile.”
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This article originally appeared on GOBankingRates.com: 5 Ways the Rich Do Banking Differently Than the Middle Class
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