Comparing private banking perks

BELLS AND WHISTLES: ARE YOU GETTING VALUE FOR MONEY?

People making serious money hate to part with it unnecessarily, so just what are you paying for when you upgrade to one of the big bank’s “private banking” accounts?

Aprivate banking account provides three essentials: the “status” or “prestige” of flashing a black/titanium card; the convenience of having a “dedicated” private banker (in other words, personalised service); and access to airport lounges.

But we should probably not be paying upwards of R300 a month for a bank account. Banks have slowly dropped salary requirements for these types of accounts.

But, aside from the travel benefits (we’ll get there in a moment), a dedicated private banker who you can contact for any request is probably the main reason customers choose private banking.

Comparing banking offerings on these two vectors is difficult, since price doesn’t really enter the equation. Monthly fees (for bundled accounts) hover in the R400 range: from R325 to R465 across the eight options.

Service is generally superior to what you’d endure in branches and call centres. Your “dedicated” banker is shared across hundreds of customers. Plus, is there really any difference in “prestige” between one private bank account and another?

One could argue the only useful comparison is airport lounge access. Bidvest Premier lounges have long been the status quo in South Africa and access is bundled with almost all private bank accounts.

The Slow Lounge, by Comair and RMB/FNB, has been a firm differentiator for the FirstRand Group’s private banking offerings. However, based on the group’s eBucks rewards programme, visits can be limited. Investec cardholders are able to access SAA lounges at no charge.

Absa

Bidvest Premier: No charge DragonPass (inherited from Barclays, and similar to the Priority Pass programme, with access to over 800 lounges worldwide): First six visits a year free, thereafter R160 (domestic/R300 international)

FNB Private Clients

Slow Lounge: 6/12/36/48/unlimited visits a year, dependent on eBucks Reward Level FNB Private Wealth (RMB Private Banking, but with an FNB logo): Slow Lounge or Bidvest Premier: 12/24/48/unlimited visits per calendar year, dependent on eBucks Reward Level Priority Pass international lounge visits: 0-12 per year, dependent on eBucks Reward Level

Investec

Bidvest Premier: No charge SAA Lounges: No charge

Nedbank

Bidvest Premier: No charge

RMB Private Banking

Slow Lounge or Bidvest Premier: 12/24/48 unlimited visits per calendar year, dependent on eBucks Reward Level Priority Pass international lounge visits: 0-12 per year, dependent on eBucks Reward Level

Standard Bank

Bidvest Premier plus selected other lounges (including over 600 worldwide): 15 free visits per quarter, provided minimum of R15 000 is spent per quarter on Diners Club card

For frequent domestic travellers who aren’t keen to worry about rewards levels, Investec’s account is probably the best.