The term private banking refers to the investment, banking and other financial services offered by the banks and financial institutions to the private individual.

The word private generally signifies to the services provided to the customers on the personal basis, instead of that is provided by the retail banking institutions, usually through dedicated bank advisors. Praivate banking is a bit different from the private banks that are simple referred to as the non-incorporated banking institutions. Earlier, this form of banking was quite exclusive where individuals comprise only higher amount of transactions, usually higher than $2 million. However, now it has been reduced to $250,000 for the individual bank accounts for attracting the investors. Investors are offered various schemes related to wealth management, savings, inheritance and tax planning from the private banking institutions.

Generally, wealth management is regarded as one of the important profile form of private banking. The word private also signifies to bank secrecy as well as the careful allocation of assets to minimize taxes or by hiding taxes from the tax authorities. Swiss banks and many other banks assist the customers in hiding their income levels to save the amount liable to taxes. In the eye of law, fraudulent activities are offensive, but in Switzerland, this is the only activity that has been declared as civil offense.

Private banking, simplydepicts a relationship banking with the professional advisors.

Earlier was for very rich individuals, but now anyone having the capacity to spare in five figures can enter into it. At private banking institutions you will get the best advice for tax avoidance, investment benefits and quality services than you get from your local bank. Private banking, nowadays has become quite competitive that if you have some large amounts of money in your pockets i.e. around $250,000, you will find several doors of opportunities.

It is true that it sounds a lot; however, it has now reduced to a significant extent. If you have such a big lot of money, many private banking agents will offer you to invest as they know that if you are able to put that much money now, you will definitely be able to put much more than that. As a general consent, if you some in the first place, it would be easier for you to make money.

Hence, the personal relationship is not the only thing that will count, the investment geniousness, knowledge of investment opportunities, offshore portfolios, tax avoidance schemes etc also count for making you money to move further.

A private bank comes under the category of an incorporated body. They are favoured by the conservative investors where the directors are personally liable as probably cautious for the management of the funds of the clients. Private banks are the financial institutions that are generally owned by some well-to-do families and cater to rich people only. The confidentially of the wealthy people lead them to choose private banking business and the matter of confidentiality involve their pledge of keeping secret the records of their clients. For some individuals, the confidentiality implies to a pledge of keeping their clients records safe from the criminals, corrupt governments and lawsuits. On the other hand, some use this secrecy to evade tax and cover income from authorities like IRS etc.

Self-directed private banking is an alternative form of private banking, where clients solely manage their investment portfolio, at times they get call on advice from the bank. These type of account benefits with lower fees and significant personal control. Tax planning and inheritance are additional private banking services provided to the investors either directly or by referral for an additional fee.