What Banks Do Lottery Winners Use And What Are The Perks?

Imagine winning a really big lottery jackpot? The first things that spring to mind are all the things you can now buy with millions in your bank. But, have you ever considered that maybe you should opt for a private bank?

Best banks for lottery winners After winning a massive US Powerball, Mega Millions, or the EuroMillions jackpot, you might want to consider looking into more upmarket banks to invest your millions into.

Andy Carter, the UK National Lottery’s spokesperson had this to say on the matter: 

“For wins of more than £500,000 we recommend that winners choose a private bank – all high street banks have private arms that deal with high net worth individuals, and some banks even have a small team of people that just deal with lottery winners! We have contacts with all the major banks and arrange for someone to attend the validation meeting to set up a special account.”

Not all banks are open to the public. Behind the front doors of the world’s biggest banks are little-known private banks that are only available to high net worth individuals.

Unlike the average Joe, high net worth individuals don’t keep their fortune in a single bank account. Instead, it’s all in the form of investments, relatively illiquid assets such as a business or real property, trust or other forms of inheritance and, of course, cash. It’s for this reason that there are private banks that were set up to address the wide range of services someone with a high net worth needs in order to manage larger amounts of money.

Often, these individuals will have a single account manager, who oversees a team of professionals based on the client’s needs. This team of professionals include an investment adviser, a portfolio manager, an estate planner, a trust officer, an insurance specialist, and a tax adviser, as well as a private banker who manages the client’s cash accounts and any other banking services that may be needed.

Private Banks work with a client’s outside financial advisers to create a financial plan that not only maximizes the earning power of their money now but also after they pass away.

So, when you win the lottery, you’ll know where to go.

The more money you have, the plusher the red carpet these banks will roll out for you.

Barclays – Barclays offers a service called “Little Book of Wonders” by partnering with luxury brands. This gives clients up to five complimentary experiences per year in certain lifestyle areas. For example, your children can experience being a zookeeper for a day and adults could get a private tour of the Crown Jewels or the Churchill War room.

HSBC Private Bank - At HSBC Private Bank you can enjoy free tickets to Wimbledon and big-name golf tournaments.
Not only do some banks offer extra assistance to the wealthy, but they also offer lucrative reward programs to entice wealthy individuals to do business with them. The reason for this is due to the fact that wealthy account holders add more to a bank's assets, therefore, banks have a strong incentive to create rewards programs.

Chase, Citigroup Inc. and Bank of America Corp. are just a few that have niche programs that provide a host of rewards to account holders with balances above a minimum threshold.

Chase Private Client

If you happen to win the US Powerball or Mega Millions, you might want to consider leaving your prize money in the country and becoming a Chase Private Client. You will, of course, have to have over $10 million in assets.

High net worth account holders at Chase do not pay regular banking fees, such as wire transfer fees or fees usually charged for using ATMs abroad. They also have access to additional debit cards with set limits for their family and caregivers.

When it comes to credit cards, they also enjoy perks associated with the Chase Sapphire Reserve. It’s considered one of the premier cards for travelling and gives $300 in credits for travel expenses every year and three times the rewards points for international travel. It also waives foreign transaction fees charged by other credit cards when used abroad and provides access to VIP travel lounges in airports worldwide.

Which are the best checking accounts for the wealthy?

While Chase once again makes the top 10 list, numerous others also offer incredible perks.

As long as you have a minimum daily balance of at least $250,000 in a combination of linked checking, savings or investment accounts with Chase, you can be part of Chase Private Client Checking.

This feature has no monthly service fee and you can enjoy interest rates on linked savings accounts as well as fee waivers on selected services, including wire transfers and foreign ATM withdrawals.

HSBC Premier Checking

With an HSBC Premier Checking account, you need to maintain at least $100,000 in combined investment and deposit balances with the bank. Here you will be privy to a number of built-in benefits, including the ability to earn a bonus of up to $2,000 each year, when you refer someone for a new HSBC account. Clients enjoy personalized financial support as well as discounts on loan products and a range of complimentary services.

U.S. Trust Wealth Management Interest Checking

U.S. Trust is a private banking division of Bank of America. Customers need to have a minimum of $3 million in liquid assets. It’s geared toward high net worth individuals who want to earn a competitive rate on their balance. It also has no monthly maintenance fees and members are eligible to enrol in the Preferred Rewards program, which offers exclusive benefits such as a 75% bonus on rewards earned with a Bank of America credit card.

Big 5 Bundle, what do lottery winners invest in What Do Lottery Winners Invest In?

Property

While you might think that most wealthy individuals invest in property, the truth is that property might not accrue value as quickly as other options and you could end up not making as much as other investments.

More and more millionaires prefer financial stocks and are reducing their exposure to the technology sector.

It’s also worth taking time to consider where you live as a millionaire: if you’re living in the UK, the money you earn on your investments is likely to be eaten away by income tax, capital gains tax and inheritance tax. Countries that are more favourable to millionaires include Dubai, Switzerland, and Monaco.

With all this in mind, you will have to make sure that you speak to a financial advisor the minute you realise that you have won the jackpot.

You can also now see why most lottery jackpot winners take their time to come forward and claim their prize. They also end up opting to keep their identities private.

If you are fortunate enough to win any of this week’s massive lottery jackpots, you too will be shopping for a private bank. You can start with your current bank and see what they have to offer.

We would suggest, though, that you call the private arms of a few others, too, to find out how they’ll roll out the red carpet for you.

Remember, it’s imperative to work with a financial advisor and ask for his or her recommendations. Financial advisors often have the inside scoop on the best private banks in your region.

 



This post was written by
Jason L - who has written 2645 articles
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