Banks offer perks to entice wealthy individuals to do business with them. Because the wealthy account holders add more to a bank's assets under management (AUM) than non-wealthy ones, banks have a strong incentive to create rewards programs.
Chase, Citigroup Inc. and Bank of America Corp. have niche programs that provide a host of rewards to account holders with balances above a minimum threshold. CitiGold, though powerful, does have some interesting competition.
- Three of the world's biggest banks—Bank of America, Citi, and Chase—all offer high-net-worth management solutions.
- Different banks offer rewards in different areas: some are flight perks, loan discount, and the waiving of bank management fees.
- Travelers may do best with Chase Preferred Client, frequent ATM users might benefit most from Citigold and those with a lower amount of assets may want to at least start with Bank of America.
Citigold provides the following perks and rewards for customers with more than $200,000 in their checking, savings, retirement, and investment accounts with Citigroup.
Waived Monthly Service Fees
Citigold customers enjoy no monthly service fees on their checking accounts as long as they maintain minimum balances across their deposit, retirement, and investment accounts.
Citigold customers earn rewards points, known as ThankYou Points, for direct deposits or enrollment in online bill pay from a Citigold account. Customers can redeem these points for travel discounts, gift cards, and even cash.
Additional Fee Waivers
Overdraft protection transfer fees, checkbook order fees, stop payment fees, incoming wire transfer fees, out-of-network ATM fees, and money order fees are not charged to Citigold customers. You are also allowed to make trades with Citi Personal Wealth Management for a reduced fee.
Mortgage customers enrolled in Citigold can choose between reduced closing costs or a 0.25% interest rate reduction. Citigold customers can apply for a home equity line of credit (HELOCs) or a personal loan at reduced rates based on the prime rate. Numerous restrictions apply, with good credit being the most important.
Chase Private Client
While Chase reserves its ultimate services for those account holders with over $10 million in assets, individuals with $250,000 in assets can take advantage of the services offered through Chase Private Client.
Fees and Debit Cards
These high net worth individuals (HNWIs) do not pay regular banking fees, such as wire transfer fees or fees usually charged for using ATMs abroad. They have access to additional debit cards with set limits for their family and caregivers.
HNWIs can enjoy the perks associated with specialty credit cards at Chase, including the Chase Sapphire Reserve. Considered one of the premier cards for traveling, the Sapphire Reserve gives $300 in credits for travel expenses every year and three times the rewards points for international travel. It waives foreign transaction fees, charges by other credit cards when used abroad, and provides access to VIP travel lounges in airports worldwide.
Bank of America
Bank of America's Preferred Rewards Gold program is available for customers with total balances above $20,000 between their Bank of America banking account and Merrill Lynch investment accounts. Customers with balances above $50,000 or $100,000 can join the Preferred Rewards Platinum or Platinum Honors programs, respectively.
Interest Rate Boosters
Rewards customers receive a percentage increase in money market account yield for gold, platinum, and platinum honors status, respectively. However, this does not mean platinum honors account holder earns 20% interest on his money market account. Rather, it means if the account is paying 1%, he earns 1.2%.
Credit Card Rewards
Members receive a 25, 50 or 75% boost in credit card rewards, based on their tiers.
No-Fee ATM Transactions
Platinum members can make up to 12 yearly withdrawals from out-of-network ATMs for no fee, while platinum honors members receive unlimited no-fee withdrawals.
Mortgage, HELOC, and Auto Loan Discounts
Mortgage origination fees are reduced by $200, $400, or $600, depending on the member's tier. The interest rate discount on auto loans is 0.25 to 0.5%. Credit approval is still required for all loans.
Since 2014, Preferred Rewards members have enjoyed free stock and exchange traded fund (ETF) trades through Merrill Edge. In 2019, zero-dollar trades were expanded to all Merrill Edge self-directed clients.