The great private banking myth

Britons are failing to take advantage of the superior service of traditional private banks because they over-estimate the minimum investment level required to become a customer, according to new research issued today by Cater Allen Private Bank.

Cater Allen surveyed 1,050 UK adults as to their views on private banking. One in four (24 per cent) claimed that they would be likely to switch to a private bank if they had the money - with 37.5 per cent of those very likely to do so.

However, those surveyed thought that the entry level for becoming a private bank customer was extremely high - believing that they needed a minimum of £451,900 on average. Remarkably, over 16 per cent of people believed that you needed in excess of £1m to become a private banking customer.

Only three per cent of people correctly identified that people could access private banking services for a minimum balance of just £5,000.

Richard Dunn, Managing Director at Cater Allen, said: "Private Banking still retains a mystique and aura of exclusivity. Therefore many people do not realise they can access the superior services offered by private banks. Cater Allen clients benefit from the service that you would expect from a traditional private bank with dedicated account handlers, based here in the UK, but at a low minimum investment level of £5,000.

Cater Allen offers its customers a wide variety of innovative services, backed by a dedicated account handling team.

Current accounts are multi-currency, allowing deposits in dollars, euros or sterling (minimum £5,000, or equivalent, opening balance)

Cater Allen offers a "Visa Deferred-Debit Card", which allows users to continue to earn interest on their current account in-credit balance .

Unlike most traditional private banks, Cater Allen offers more ‘inclusive' banking that requires a minimum cash deposit of just £5,000 but offers access to the superior service associated with a private bank.