Private Banking Services Vs Retail Banking

Private banking is a much more personalized banking service given to individuals who invest substantial sums, typically over U$S1M. The most noticeable difference between retail and private banking services are that private clients receive customer service on a 1-1 basis via a relationship manager or a private banker. Wealthy individuals with private accounts can expect to meet their bank contact in person, and have direct phone access to a relationship manager. Usually the private banking arm of a bank is separate from the retail banking arm and the service is completely distinct.

A private bank is one that is not incorporated. Private banks are favoured by conservative investors because the directors are personally liable, and more likely to be cautious in managing client funds. Financial institutions like these are sometimes family owned and only cater to the very rich. One of the reasons why wealthy people choose them is their confidentiality – a pledge to maintain client records secret. For some it is a case of not wanting to be targeted by criminals, lawsuits or corrupt governments. Others use this secrecy to shield income from authorities like the IRS and evade tax.

Many of the world’s private banks are found in Switzerland because of the strict bank secrecy laws and sophistication of Swiss financial services. Small banks in countries like Switzerland are also more likely to keep their client records secret because they limit their operations to within the country’s bank secrecy laws.

Not only private banks offer private banking services – in fact some of the biggest providers of private banking and wealth management services like UBS, Credit Suisse and the Barclays are not privately owned. Private clients of these huge banks can take advantage of their in-house trading and research departments, and sometimes choose to have almost all their assets managed by the bank. This way they expect much higher returns than those given by a simple savings account or certificate of deposit.

Types of Private Banking Services

Usually only very affluent clients demand wealth management – where private bankers manage an investment portfolio for a family or an individual. The fee for this service varies from bank to bank and is charged yearly as a percentage of the total amount invested. The return of a portfolio will also depend on the standard of the private banking service. While some will provide excellent returns, others will continue to charge high fees while investing client funds in the bank’s own investment funds, regardless of whether or not this is beneficial to the client.

A popular alternative to wealth management is Self-Directed private banking, where the client manages his own portfolio, at times calling on advice from the bank. The advantages of this type of account are lower fees and greater personal control.

Inheritance and tax planning are extra private banking services provided either directly or by referral for an extr

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All About NRI Banking Services

Living abroad no longer means staying away from your loved ones back home. With NRI Banking Services on a rise, keeping in touch with your family in India is easy, convenient and quick. Many Indians living in foreign countries like US, UK, Canada, etc. benefit from these NRI Services. This banking services are useful to make investments & remittance. Also, many NRI’s opt for these services to avail of loans, bill payment facilities, etc.

The eligibility criterion for NRI banking services is simple and clear. Any Person of Indian Origin (PIO) is eligible to use NRI banking services. An individual is classified as a PIO when:

1) He / she holds or has held an Indian passport
2) He / she has parents or grandparents who were citizens of India by virtue of the Constitution of India or Citizenship Act, 1955 (57 of 1955)
3) He / she is married to a person of Indian origin

The only exception here is for individuals who reside in Bangladesh and Pakistan as they are required to attain special permission from the Reserve Bank of India (RBI) to use the NRI banking services.

The main highlight of NRI banking services is the remittance facility to India. Being able to send money back home to your family quickly and safely is a big advantage while living abroad. What’s more is that irrespective of where you send the money from, the recipient receives the money in Indian currency. This saves them the trouble of converting money in times of emergencies.

With the NRI remittance service, one can also make bill payments to India from anywhere around the world. However, remitting money to India is not totally devoid of problems. One could face problems concerning the high commissions taken by the agents, cash only policies or the poor service provided by them. Also, in India we face the issue of limited service area.

Another important feature of NRI banking services is loan. Now, even non-resident Indians can apply for loans to buy property in India. Most banks have certain eligibility criteria for loans like monthly income, assets, Indian passport and other important documents.

NRIs also have the facility to make investments in India with this banking services. The Indian stock market and Mutual Funds are some of the various investment options in India. However, as we all know, investments in the stock market are subject to risks and fluctuations. So, it is advisable to choose your NRI Bank wisely.

Furthermore, 3 types of accounts for banking services for NRI. The Foreign Currency Non-Resident Accounts (FCNR) is a Fixed Deposit account and they are maintained only in currencies like US Dollars, GBP, DM, Euro and Yen. The Non-Resident External Accounts (NRE) can be in the form of Savings, Current or Fixed Deposits in Indian Rupees. Finally, the Non-Resident Ordinary Accounts (NRO) can be in the form of Savings, Current or Fixed Deposits in Indian Rupees. However, in this account the funds are non – repatriable.

So, whether you have to send money to your family, buy a home in India or make smart investments, this banking services hold the best solutions for all your needs. NRI banking is indeed an invaluable link that connects Indians living abroad to their home back in India.

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