HSBC Jade

[R33FAL]

Looks like they have doubled the required amount to be invested to maintain Jade status- says it applies to new applicants but they will apply to existing customers over time…

I am loathed to keep that amount of cash with HSBC given their saving rates and investment offers are so lacklustre- what are ppl doing? Any other premium accounts worth considering? Coutts has an even higher requirement if i recall right?

[Alexandra]

This doesn't directly answer your question but may help. I closed my Coutts accounts a few years ago but could not fault them for their level of personalized service. At the time, the account managers really did bend over backwards to help in any regard.

I've not heard of HSBC's Jade but if they change the criteria like that then they could keep doing it; I wouldn't feel particularly loyal to them...

[btdk5]

No offence but I don’t think many of the private banks will be interested in taking you on at that level. Lloyds may open an account if you give them £250k.

Coutts minimum is £1m
Barclays wealth £500k but you won’t get a manager until £1m
UBS - £1m
HSBC private - £3m

[dmahon]

What’s the value prop of these accounts?

I can invest with Vanguard at 0.1-0.2%, so the service would need to be bloody good before I signed up to 1.5%+ management fees.

As nice as it would be to flash a Coutts card....

[Zoon]

dmahon said:

What’s the value prop of these accounts?

A similar value to using a Rolex to tell the time instead of Casio. Nothing
It sounds good down the pub/polo club/etc

[NowWatchThisDrive]

I'm also sceptical as to how much value you really get from these kinds of services aside from the perceived exclusivity. I can imagine if you have a lifechanging amount of money fall into your lap and no clue what to do with it then the breadth and depth of general financial handholding would be useful - certainly if the fate of various lottery winners over the years is anything to go by. The fees seem pretty chunky though and I'd be surprised if the discretionary portfolio performance is special enough to justify them. One thing they offer which has aroused my interest before is margin lending although as you'd expect they're less inclined to lend against a self-managed portfolio than one you hand over to them.

[Al Gorithum]

Personally I wouldn't use any of the big bank HNW accounts. It depends on your status and requirements but you're much better off with a small private bank IMO if you can afford to pay for the service.

[eyebeebe]

NowWatchThisDrive said:

I'm also sceptical as to how much value you really get from these kinds of services aside from the perceived exclusivity. I can imagine if you have a lifechanging amount of money fall into your lap and no clue what to do with it then the breadth and depth of general financial handholding would be useful - certainly if the fate of various lottery winners over the years is anything to go by. The fees seem pretty chunky though and I'd be surprised if the discretionary portfolio performance is special enough to justify them. One thing they offer which has aroused my interest before is margin lending although as you'd expect they're less inclined to lend against a self-managed portfolio than one you hand over to them.

Discretionary portfolios are really for people who don't have the time or the interest to manage their own money. At the kind of levels being discussed on this thread they aren't really going to be particularly bespoke either. Realistically 8 digit figures needed for that.

I haven't seen any differentiation for margin lending between a self-managed, an advisory or a discretionary portfolio. It's normally based on the quality/volatility of the assets and the currency mix. A well diversified fund in the same currency as you want to borrow in is going to have a better LTV than a single stock in an emerging market.

On top of the lending, where private banks can really add value is by assigning you an investment advisor who you can bounce ideas off all day every day and will actively propose trades or rein in your exuberence. They can also open up opportunities that you wouldn't easily find elsewhere like access to PE funds and IPOs.

FWIW having read the HSBC Jade website, it isn't private banking. It's (as the OP in fairness says) a premium bank account. I've no idea what the platform fees are for £250-500k of investments at HSBC (I'd guess around a grand a year), but it'll be more than enough for them to make money on offering a flash credit card and a concierge service.

[NickCQ]

anonymous said:

[redacted]

What does this really mean in 2021, though? There was a thread about this a few months ago, IIRC the only convincing "complex banking need" was someone making frequent payments over £250k needing CHAPS by phone / online. You'd need a net worth of well in excess of £1 mm or even £5 mm for that to be relevant (unless you were for some reason running business txns through a retail account).

[R33FAL]

The only genuine benefit i can see from Jade is you can get an “unsecured” (how unsecured tbc) personal loan of up to £250k at 3% interest.

However the price to pay for that is 0.1% saving rate on their best savings account (£40 a month return on £500k ! ) and a crappy selection of funds they offer with higher fees.

Also a concierge service which seems mediocre.

[Mazinbrum]

Anyone use Handelsbanken? They have a very good rep.

[LooneyTunes]

Mazinbrum said:

Anyone use Handelsbanken? They have a very good rep.

I’d heard the same, but the reality is that it depends on the local office. I was a Handelsbanken customer for 3 months…

[Jamescrs]

Zoon said:

A similar value to using a Rolex to tell the time instead of Casio. Nothing
It sounds good down the pub/polo club/etc

If someone told me they had a HSBC Jade account they would get a blank look back or maybe i'd say I bank with HSBC too, never heard of it intil I read this thread.

[Alexandra]

Mazinbrum said:

Anyone use Handelsbanken? They have a very good rep.

A friend had accounts with them and had mixed experiences. Certainly didn't live up to their reputation, though it's unlikely the bank was wholly to blame there.

[db10]

Coutts were very good at arranging my mortgage - basically gave me the cash within minimal questions asked - so for me it was valuable

[S17Thumper]

Coutts cheques are even made from cheaper paper than a few years ago

[Zoon]

S17Thumper said:

Coutts cheques are even made from cheaper paper than a few years ago

Cheques! What are these antiquities you speak of?

[Soleith]

Jade is decent if for nothing else than free airport lounge access (really useful these days of course!). I also found that they had useful tax planning capabilities I was unaware of.

Keep in mind it's not all investment funds with active management fees, most of my stuff with HSBC is in investdirect/investdirect ISA. You can trade all these things and they count towards your "total investments held with hsbc" so even if you want to trade small caps on AIM or AQSE should still be fine.

Talking of AQSE, Arbuthnot are listed on us and are apparently decent, also £1m minimum.

[eyebeebe]

Soleith said:

Jade is decent if for nothing else than free airport lounge access (really useful these days of course!). I also found that they had useful tax planning capabilities I was unaware of.

Keep in mind it's not all investment funds with active management fees, most of my stuff with HSBC is in investdirect/investdirect ISA. You can trade all these things and they count towards your "total investments held with hsbc" so even if you want to trade small caps on AIM or AQSE should still be fine.

Talking of AQSE, Arbuthnot are listed on us and are apparently decent, also £1m minimum.

What are the dealing commissions like though?

[Soleith]

eyebeebe said:

What are the dealing commissions like though?

Good question, not great to be fair, £10.5 per trade, if you trade frequently I think there's a discount available. Add on to that the investdirect portal/tools are pretty atrocious but I'm a low volume buy and hold kind of guy these days. Holding periods and pre-trade authorisation with work etc are annoying!