The best banks for millionaires offer private financial and wealth management services to grow your money even further.
JP Morgan, Wells Fargo, Bank of America, Citi Bank, and Goldman Sachs are just a handful of top banks youve probably heard of that offer private banking options for individuals with multi-million-dollar net-worths. These account packages generally include wealth management advice and services, in addition to premium checking and savings accounts and investment opportunities.
They may also provide specialized services, like high-income tax strategy, trust preparation, and philanthropy planning for more advanced money management.
You typically need to meet a minimum in investable assets to qualify for private banks for millionaires. And like any other bank, some will be a better fit for certain rich individuals than others. Here are the banks millionaires use and the key benefits of each.
Having millions of dollars is a dream for many people But what do you actually do if you come into a large sum of money? Where should you put it?
The reality is, depositing millions of dollars into a standard checking or savings account isn’t the best idea. There are limits on FDIC insurance coverage and you’ll miss out on potential investment growth. Luckily, there are better places to stash your millions.
High-Yield Savings Accounts
High-yield savings accounts are a great place to park cash you want to keep safe and liquid. The FDIC insures these accounts up to $250000 per depositor per bank.
To fully insure millions, you can open high-yield savings accounts at multiple banks. You’ll earn interest while your money is FDIC insured and easily accessible. The current average high-yield savings rate is around 0.50% APY.
Some top high-yield savings accounts include:
- CIT Bank Savings Builder – 0.55% APY
- Marcus by Goldman Sachs – 0.50% APY
- Ally Online Savings – 0.50% APY
Money Market Accounts
Money market accounts (MMAs) are similar to high-yield savings accounts but may offer even higher interest rates. The FDIC insurance limits are also $250,000 per depositor, per bank.
Current MMA rates range from around 0.25% to 0.75% APY. Some money market accounts like those from Wealthfront or Betterment also invest your cash in low-risk securities for growth potential above savings accounts.
Jumbo CDs
Certificates of deposit (CDs) allow you to lock up your money for a set period of time in exchange for a fixed interest rate. Jumbo CDs are CDs with deposit balances over the standard maximum of $250,000.
Jumbo CDs don’t have FDIC insurance limits, so they provide another way to maximize FDIC coverage. You can ladder multiple jumbo CDs at banks to earn interest while staying insured. Rates for 1-year jumbo CDs currently range from around 1.00% to 2.15% APY.
Treasury Securities
Directly investing in short-term U.S. treasury securities is considered very safe. These include treasury bills, notes, bonds, and tips. You can buy treasuries directly from the government at auction or through a brokerage account.
Current 1-year treasury yields are over 4.00%, much higher than savings or CDs. The downside is that your money is not FDIC insured and you may lose a small amount of principal if you sell a treasury before it matures.
Trust Companies
Trust companies provide custodial services for assets and can act as your agent in managing large deposits across cash, CDs, and other securities. This consolidation makes managing millions easier.
Trust companies also handle tasks like record-keeping, account access privileges, wire transfers, bill pay, and FDIC insurance coordination across all your accounts. Fees vary based on assets under management and services utilized.
Private Banks
Private bank divisions cater to high-net-worth individuals, usually those with at least $1 million in liquid assets. You get assigned a personal banker who provides personalized service, higher interest rates, and customized solutions.
Private banks also offer services like wealth management, tax strategies, estate planning, philanthropy guidance, and specialty lending. Expect high minimum balance requirements, but perks like unlimited ATM fee reimbursements and airport lounge access.
Some top private banks include J.P. Morgan Private Bank, Bank of America Private Bank, Citi Private Bank, and Goldman Sachs Private Wealth Management.
Diversify Your Assets
While it’s smart to keep some cash on hand for expenses and emergencies, investing excess millions can lead to greater long-term returns. Work with a financial advisor to build a diversified portfolio including stocks, bonds, real estate, and alternative investments based on your risk tolerance and time horizon.
Diversification is key to growing wealth while minimizing risk. It’s never a good idea to keep all your eggs in one basket. Finding the right mix of cash, conservative investments, and higher return investments ensures your millions work hard for you.
Think Long-Term
Resist the urge to run out and make big purchases when you receive an influx of cash. Buying luxury goods likely won’t bring lasting happiness. Take time to carefully consider your goals and how to use the money in ways that can continue growing.
Establishing a trust, funding education accounts, paying off debts, or investing for retirement can set you up for long-term prosperity. Patience and discipline are instrumental in handling sudden wealth.
Get Professional Help
Receiving millions can be overwhelming without the right guidance. A financial advisor and wealth management team can help you navigate major decisions like asset allocation, tax strategy, estate planning, charitable endeavors, and more.
The right professionals make sure you follow best practices, avoid common pitfalls, and capitalize on every opportunity. With millions of dollars, it’s worth paying for expertise.
Final Thoughts
What you do after depositing millions depends on your financial situation and goals. But there are smart ways to store large sums while keeping them protected and earning returns.
Consult experts, diversify your assets, think long-term, and use banking products designed for high balances. With the right plan, your millions can secure your financial future for years to come.
Bank of America Private Bank
How it stands out: Bank of America Private Bank partners with Merrill Lynch so you can hold all of your investments at the same bank. It also provides Preferred Rewards with perks like no banking fees, credit card rewards and savings interest rate boosters, and auto and mortgage loan rate discounts for millionaires.
Who its best for:
- Millionaires with complex financial portfolios
- High-net-worth individuals who want to score the best rates on loans
- Philanthropists who want to start a charity
- Art collectors who want help managing their collection
Bank of America offers various services to wealthy customers. However, Bank of America doesnt publish its minimum balance requirements for its private banking services.
The banks specialized services include standard banking and lending, as well as customized financing that uses a yacht, airplane, or art collection as collateral for more significant projects.
Customers may also have access to a line of credit to help maintain liquidity. Other services include:
- Trust management
- Philanthropy
- Endowment planning
- Investing in alternate assets
- Art services for collectors or institutions
Bank of America partners with investment company Merrill Lynch to offer the Preferred Rewards program, which offers extra rewards, an interest rate booster on savings accounts, and additional investing options through Merrill Lynch.
You dont need to be a private banking customer to use the Preferred Rewards program. However, the Diamond level of the Preferred Rewards programs requires a minimum average balance between Bank of America and Merrill Lynch accounts of $1 million over three months. Diamond Honors members must maintain an average balance of $10 million over three months to receive benefits.
How it stands out: UBS Wealth Management is one of the few banks for millionaires that offers special services for athletes and entertainers — groups that have a notoriously bad time managing their money.
Who its best for:
- Clients with specialized needs, like athletes, entertainers, business owners, and multicultural investors
- Millionaires who need help navigating complicated family dynamics
- Investors looking for non-traditional investment opportunities
- Millionaires who want to use a cash sweep program to ensure all of their savings is FDIC-insured
UBS Wealth Management provides personal finance and banking services for rich people. This includes:
- Checking and savings accounts
- Credit cards
- Commercial real estate financing
UBS Wealth Management can help set up long-term care options for future healthcare needs. It also offers retirement accounts, education planning (including 529 plans) for children and grandchildren, and general investment management and planning.
UBS Wealth Management also provides business solutions, including assisting business owners with setting up retirement and equity plans and institutional consulting.
The financial institution offers specific services for athletes and entertainers, corporate officers, founders and entrepreneurs, and family offices to ensure personalized wealth handling. Some of the services offered specifically for entertainers are rights and returns services, helping to keep your music catalog under your control.
Newly wealthy people can enjoy a perk such as working with a private banker to determine how much of their new prosperity to share with family and friends. They can also set up a financial plan to ensure their money lasts a lifetime.
J.P. Morgan Private Bank
How it stands out: J.P. Morgan spends $700 million a year on cybersecurity, making it an extremely secure place to store your cash and investments. It also has a wide global reach, with many international resources that can help you make deals or investments anywhere in the world.
Who its best for:
- Millionaires who value security
- Millionaires looking to take advantage of international opportunities
- Investors looking for sustainable investing opportunities
- High-net-worth individuals looking for specialty financing for things like superyachts or sports teams
J.P. Morgan Private Bank has been in business for almost 200 years and was named the best private bank in the world by the Global Finance magazine in 2020. It offers:
- General banking
- Wealth management services
- Trust account management
- Lending facilitation on expensive and custom homes or even superyachts
J.P. Morgan Private Bank ensures that every personal advisor is a fiduciary, meaning the person you work with is legally required to put your financial interests ahead of their own or their firms. Working with a fiduciary is vital to getting the right advice.
J.P. Morgan doesnt publish its minimum balance requirements, but many private banks require at least $1 million in investable assets to qualify for private banking.
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FAQ
What kind of bank account do you put millions of dollars in?
Private banking is typically designed to enhance and manage wealth for high-net-worth clients. Most people use personal banks to keep their money safe and pay their bills.
Where do millionaires deposit their money?
What bank do millionaires put their money in? There’s no single bank that’s a favorite among millionaires; it’s another matter of preference. However, millionaires are likely to bank with institutions that offer private banking to those who meet specific financial requirements.
Where is the safest place to put $1 million dollars?
The safest way to invest $1 million is in a combination of U.S. government bonds and securities, including treasury bills, treasury notes, treasury bonds, and inflation-protected securities. While these investments pay less than many others, they’re considered ultra-low-risk investments.
Can I put a million dollars in a high yield savings account?