What Bank Do Rich People Use for Their Finances?

Wealthy individuals, often called high-net-worth (HNWIs) or ultra-high-net-worth individuals (UHNWIs), seek financial solutions beyond standard consumer banking. HNWIs typically possess investable assets ranging from $1 million to $30 million, while UHNWIs hold investable assets exceeding $30 million. Their financial lives involve complex assets, diverse income streams, and sophisticated planning needs that require specialized expertise and tailored services. These individuals require a comprehensive approach to managing their wealth.

Institutions Catering to Wealthy Clients

Wealthy individuals often engage with a range of financial institutions designed to manage complex financial portfolios and provide highly personalized services. Private banks are a common choice, distinguished by their focus on personalized relationships and comprehensive financial solutions. These institutions, such as J.P. Morgan Private Bank, Goldman Sachs Private Wealth Management, and UBS Wealth Management, offer a dedicated team of advisors who manage all aspects of a client’s financial life. They often provide access to exclusive investment opportunities and bespoke credit solutions.

Wealth management firms offer another avenue for affluent clients, differing from private banks in their primary focus on investment advice and comprehensive financial planning. This category includes independent Registered Investment Advisors (RIAs) and wealth management divisions affiliated with larger brokerage firms, like Merrill Lynch Wealth Management and Morgan Stanley Wealth Management. These firms emphasize developing customized financial strategies, including retirement planning and philanthropic endeavors.

Family offices represent a highly specialized and comprehensive option, particularly for ultra-high-net-worth families. These can be single-family offices (SFOs) serving one family, or multi-family offices (MFOs) catering to several. Family offices manage virtually all aspects of a family’s wealth, including investment management, tax planning, legal coordination, and even lifestyle management. Their unique structure allows for unparalleled personalization and integration of services, often acting as a centralized hub for all financial and administrative needs.

Some large retail banks also offer high-end preferred banking programs or specialized divisions for clients with significant assets. While not as comprehensive as private banks or family offices, these programs provide enhanced services such as dedicated relationship managers, preferential rates on loans and deposits, and access to basic investment advisory services.

Specialized Financial Services for the Wealthy

Wealthy clients benefit from sophisticated financial solutions tailored to their unique financial landscapes. Personalized investment management involves active portfolio management and access to exclusive investment opportunities. This includes participation in alternative investments such as private equity funds, hedge funds, and direct real estate ventures. Investment strategies are customized to align with the client’s specific risk tolerance, financial goals, and liquidity needs.

Advanced financial planning goes beyond traditional retirement planning, encompassing complex intergenerational wealth transfer strategies and business succession planning. Advisors assist clients in structuring their assets to efficiently pass wealth to future generations, often incorporating various trust structures and philanthropic advisory services. This comprehensive approach considers the long-term financial legacy and family objectives.

Estate and trust planning services minimize estate taxes and ensure an orderly transfer of wealth. Institutions help clients establish various types of trusts, such as revocable living trusts, irrevocable trusts, and charitable remainder trusts, to protect assets and manage their distribution according to the client’s wishes. The federal estate tax exemption for individuals is $13.99 million in 2025, with a top federal estate tax rate of 40% on taxable amounts exceeding this exemption. Proper planning aims to reduce the portion of an estate subject to this tax.

Tax planning and advisory services are also specialized, addressing complex tax implications arising from diverse income sources, international holdings, and investment activities. Financial institutions coordinate with tax professionals to develop strategies for tax efficiency, including managing capital gains and losses, and optimizing deductions. This proactive approach helps wealthy clients navigate the intricacies of the tax code, including considerations for the annual gift tax exclusion, which is $19,000 per recipient in 2025.

Credit and lending solutions are tailored to the significant asset bases of wealthy clients, offering flexible and substantial financing options. These can include sophisticated lines of credit secured by diversified portfolios, art-backed loans, and financing for luxury assets like aircraft or yachts. Customized mortgages for high-value properties are also common, often with favorable terms and structures.

Concierge and lifestyle services are sometimes offered, particularly to ultra-high-net-worth clients. These may include assistance with travel planning, security consulting, or exclusive access to events.

Key Considerations for Wealthy Clients

When selecting a financial partner, wealthy clients prioritize specific factors that ensure their complex needs are met with precision and discretion. Relationship management and personalization are valued, as clients seek dedicated advisors who understand their unique financial situations and provide bespoke solutions. A high level of personal attention and responsiveness from their financial team is often a deciding factor.

Discretion and privacy are important for wealthy individuals, who require secure handling of sensitive financial information and a commitment to confidentiality. Institutions must demonstrate robust data protection measures and a culture that respects client privacy. This trust is built on consistent, discreet service and adherence to strict ethical standards.

Expertise and specialization are also important, as clients need institutions with deep knowledge in areas relevant to their wealth. This includes proficiency in complex investment strategies, international tax considerations, and specific industry insights. The ability of an institution to provide specialized guidance for unique assets or business structures is a significant draw.

Integrated services appeal to many wealthy clients, who often prefer a “one-stop shop” approach for their financial needs. This allows for seamless coordination of various services, such as investment management, financial planning, and estate planning, under one roof. Such integration simplifies financial oversight and ensures all aspects of their wealth are managed cohesively.

Fee structures and transparency are closely scrutinized by wealthy clients. They seek clear and understandable pricing models, whether through asset-based fees, performance fees, or flat fees. Understanding how services are charged and ensuring value for money are important considerations in their decision-making process.

The reputation, security, and stability of a financial institution are also important. Clients look for a long-standing track record of success, strong financial health, and robust security measures to protect their assets. The institution’s overall standing and its ability to withstand economic fluctuations provide peace of mind for clients entrusting them with substantial wealth.