Small Private Bank experience for NWI over 500K

[CostcoFanofThree]

does anyone on mn have experience of using small private banks such as Arbuthnot Latham, Weatherbys Private Bank, or Hampden&Co.
maybe Barclays or Lloyd's one time large lump sum and financial advice.
single mom of 2 who has no financial background, needing a handhold with sheltering and investing.

Hmmmm

well, not joking about this and i'm asking for family.
hoping if the personal services mentioned are more helpful than say hsbc.
thought someone might know.
i presume call, book an appointment and then compare? surely they charge a % for bespoke services?

Is it worth using a private bank for that? You mean the total net wealth is half million? I don’t know what the charges but I wouldn’t pay for advice

Maybe an IFA might be the best place to start. I don't think private banks would be interested in taking you on. Sorry to be blunt.

I think the qualifying balances are more in the £750k-1M range for private banks; you’re looking at if premier tier banking is worth it. That really depends on what services you want/need across cash and currency services, investments, lending, tax and retirement planning…

If your question is who can help manage £500k cash for someone with no investing experience then the answer is that that person needs to do homework and explore IFA vs self-serve platforms, reflect on their investment goals and risk tolerances, and improve their own financial education, and there are many forums on that.

I also think a bank will be poor value for money and likely be limited in what products they can set her up with.

She would probably best talk to an independent financial planner for advice on what she needs to do with this money for her current and future needs, eg if she doesn't yet own a property then she may wish to buy one outright and may want to use some of the money for an emergency fund/living expenses.

Or she may already have a secure home and may wish to prioritise her pension and investments for her DC for university etc (or savings if they're close to that age).

Google AI suggested some of the banks mentioned deal with the 300-500K plus range.
money from house sale but won’t be buying again for a while.
she’d like to use the monthly interest.

What makes you think that a 'private' bank will pay a higher rate of interest? As PPs have stated, an IFS is the way to go.

I don’t think the rate will be higher but not originally from the UK, family in CA. Her financial experience was/is SAHM wants a bit of help. Banks in CA provide this service (yes at a fee).

If this person has "only" £500k.... a private bank isn't relevant or the best place. The charges will be very high. Not worth it.

See an independent financial advisor if this person wants high yield investments or simply invest in 4 separate financial institutions - £120k in each and £20k in a cash/s & s ISA

Thanks @MarthaLovesLaughing
Four+ banks seems like a bother but it might be the way to go.
Banks kind of vet their financial planners. Finding an IFA seems somewhat risky

The money from a house sale is protected from bank failure for either 6 or 12 months, can't remember which.

What she does with the money depends on what she means by 'a while' eg a few months, few years, longer than that?

Also of her circumstances change or if she sees the perfect house and wants to buy it, could she get a mortgage instead and leave the money invested where it could well grow faster over time than what a mortgage would cost?

She needs to make sure its earning a decent interest rate, eg I think you can get well over 4% at the moment and then educate herself on UK personal finance so she can make the most of advice by having a better idea about what she wants to do with the money.

NS&I worth investigating as the £120k limit doesn’t apply, it’s backed by HM Treasury

I suggest 4 financial institutions because of the UK deposit protection limit of £120k

If I were looking for an IFA I'd ask friends and family for recommendations.

Alternatively put half (?) into investment account with Vanguard or Trading 212? Use one of their "cheap to run investments already chosen for you" accounts as these are very simple to run

Remember if you're investing, CGT might apply (unless you can invest in a pension or an ISA) and CGT might be increasing soon

@Bjorkdidit @lapuf yes, 6 months so some time to learn a bit. Agree NS&I seems like a good safety net.

I didn't know this! How interesting (although not for me as I have no money🤣)

This person could put £50k in premium bonds and the rest into a savings account with N S & I with no worries about deposit limits should the institution fail

Edit - sorry, I meant to quote the post which said that N S & I has no limit.

Thanks everyone, At least when I chat to her over the next few days I’ll be able to use the right abbreviations. And delve into the question of what she would like.

Assuming she is considering buying again within 5 years I would put in high interest savings accounts and use best buys from Money saving expert to help choose.

https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/

Bear in mind when you are taxed, a one year fixed interest can be taxed end of each year, if you do say a 5 year NS&I growth one you are taxed on whole lot at end which would put even a non earner into tax, read terms and conditions for each one. Also consider if you need money before term ends there's generally a loss of interest and currently longer term ones don't pay higher interest. Then you want to be covered if a bank goes bankrupt so either NS &I which can't go bankrupt for up to whole lot or split in 120,000 per institution so 5. You can put 20,000 in cash ISA if not done already which is tax exempt. I would vere towards 1 year fixes over longer term ones depending on her plans.

Banks are regulated and can usually only sell or advise about their own products, they can not advise you about more suitable products available elsewhere. An IFA (also regulated) can access the whole market.

You might also want to tell her that she will need to submit a tax return and pay tax on the interest.

@OneZanyCat shes honestly gotten away with 20yrs of only managing her time/kids time/house and a cell phone bill.
Doesn’t sound like this will be an easy or welcomed transition.
Hence my original question about a small private bank.
I’ll a friend if they know of an IFA.

Arbuthnot Latham have a min acc size of 500k, so she would be eligible. Are they the best fit for her? Hard to know from what you have said. They won’t necessarily be more expensive than an ifa. Loads of ifa’s charge more than AL do.

I used www.findawealthmanager.com a little while ago and AL is one of the firms we discussed incidentally. Send her to their website, they were really helpful.

the fact she is Canadian (sounds like from what you have said) might complicate things. Lots of firms won’t provide wealth management services to Canadians.

Yes, could do a mixture of income bonds, ISA, guaranteed growth bond and premium bonds (prize fund %rate rising on the latter shortly I believe).

Oh no @fiveyo , she’s been in the UK 13 yrs. 🤞
Even if she doesn’t “go” with AL, I wonder if a sit down discussion will help her.
The 5 banks idea, means five fees , five cards and apps waiting on all five end of year income tax forms etc. just wonder if 2.5K per year service charge is worthwhile she’s got lots on her plate and mind.

She can contact Unbiased for matching with an appropriate FA - they ask questions then match you & initial appointment is normally free
& Be aware if invested in stocks & shares the £120k protection limit is for the companies the money is invested in within the fund - look at AJB/HL/II/Vanguard (just some of what is available) as they are all companies that offer broad platforms so you can start to understand.
You also need a really good understanding of your friends risk level & what they are looking to achieve

Edited to correct spelling