I’ve been a privileged/preferred banking customer for about 2 years now. I’ve shopped around the major banks in Singapore, and have a decent understanding of their services and charges. There are slight variations, but they sell essentially the same products and services. I have spent hours chatting with relationship managers…

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13 thoughts on “[Premium] Are Privileged Banking and Relationship Managers worth it?

  1. Sorry. But my own encounters and both types are big failures.

    I show them my returns over 15 years and ask what can they do for me, they usually run away and never see again.

    1. Same experience with seberal banks. Young punks cannot convince 30Y experience in the battle field. BS most of the time when one really scrutinise the proposal. If you want to leverage, broking house do that too. $500K of shares leverage to buy another $1M of shares. This whole thing about privileged banking is to stroke human ego (weakness) and let people show off.

  2. Hi Care to share how you used “leveraging” through your RM? What areas in particular do you use it for?

  3. As part of the perks moving to a new job my company offered me a fee free account with one of the very famous and “too big to fail” banks with its overseas branches.
    The account is typically available to anybody, who is willing to invest about ~ 400 K USD with the bank. I opened it up and tried three things with the bank:
    – Applied for a mortgage application.
    – Did some currency exchange.
    – Tested security features.
    Mortgage application was very exhausting – lengthy and tortures. They want to know more than average bank would ask you (for example, separate interview with your partner). The mortgage advisers would miss interview appointment at very last moment and only notify you by leaving message on the answering machine.
    The end result? Their offer was 1.7% higher than their average retail outlet. The only perceived advantage was they were ready to loan 5 times of your wages, assuming that 25% deposit. I was actually told by the mortgage adviser that as having access to the retail sector, I would be better off there.

    1. I had a similar experience. My RMs directed me to their retail side too. But I thought they would tell you the rate first before asking you to do all the forms.

      Hope you managed to refinance in the end. Rate now should be like 1.5% or less?

  4. Although availability of leveraging is important including cost of funds, another key factor to take note when selecting annuities offered by the bank or any financial institution is to check whether is your principal guaranteed throughout the term or its voluntary surrender value is a mixture of guaranteed plus non guranteed components. This is especially so when you are using leveraging funds to purchase an insurance annuities plan. The last thing you want is to redeem a voluntary surrender value that does not make up your principal which is usually comprised of your own money and bank leverage monies.

    1. Yeah I agree. Surrendering an annuity is like throwing money into fire. Besides the principal, there is also the opportunity cost to think about. I’ve thought about it quite a while and I think its best to maximise CPF LIFE to the Enhanced Retirement Sum (ERS) before even considering buying a private annuity

      1. That will depends really on your longetivity…

        Cos if you do your maths, the first 17 yrs after the first payout is taking back your own money without interest. I think FRS is a good idea but the funds necessary to park to enhance to ERS, I think there are better alternatives out there with

        1. Higher yield
        2. Flexibility in funds management
        3. Higher Liquidity

        Just that its takes time and effort to do your research…below is a list from LIA.


  5. Hi @rainmaker,

    I took a look through your links but am weren’t sure what I should be looking at. Can you point me to an example of a such a product (higher yield, flexi, liquid)?


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