Premium banking has become the buzzword in India’s financial sector, promising exclusive perks, personal relationship managers, and a host of lifestyle benefits. But here’s the catch while it sounds luxurious, the value you get depends heavily on your financial habits, income, and how you use banking services.
Banks like HDFC, ICICI, Axis, Kotak Mahindra, and AU Small Finance Bank are now offering tiered premium programs that go far beyond traditional savings accounts. These accounts target affluent individuals and high net-worth families, often with steep eligibility requirements like maintaining a ₹2 lakh–₹25 lakh average monthly balance or having a total relationship value up to ₹50 lakh or more.
Finance Expert’s Take: “Premium banking is not just about higher balances; it’s about access to services that save time, reduce friction, and sometimes save money. But you must evaluate if those services are worth the cost or balance requirement,” says Mehta, a Mumbai-based financial planner.
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Key Benefits That Draw People In
If you qualify, here’s what’s on offer:
- Dedicated Relationship Managers – They act as your single point of contact for all banking needs, from loans to investments. This can be a lifesaver if you value quick turnaround times.
- Lifestyle & Travel Perks – Complimentary airport lounge access, concierge services, curated events, and even spa/golf memberships in some programs like Suryoday Bank’s Gloria.
- Financial Advantages – Locker rent concessions, preferential loan rates, wealth management, and zero-fee transactions on domestic and international ATMs.
- Insurance & Health Benefits – Air accident cover, group health insurance up to ₹50 lakh, and free health check-ups in select programs like ICICI’s Wealth Banking.
The Flip Side—Costs and Limitations
Premium banking isn’t free. While most programs waive service charges, the real “cost” is the opportunity cost of locking away large sums. For example, maintaining ₹25 lakh in a savings account earning 3–4% interest may yield less than investing in market-linked instruments.
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Additionally, perks like airport lounge access or concierge services may not be relevant to everyone. If you’re not a frequent traveler or high-volume transactor, the benefits may feel underwhelming.
Who Should Consider Premium Banking?
- High Net-Worth Individuals (HNIs) who want consolidated banking, wealth management, and lifestyle privileges.
- Business Owners & Frequent Travelers who can leverage international ATM withdrawals and travel perks.
- Families Seeking Convenience through features like family banking and centralized relationship management.
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Comparing Premium Banking Programs in India
| Bank | Program Name | Eligibility | Key Perks |
|---|---|---|---|
| AU Small Finance Bank | AU Royale / Royale World | ₹5L–₹25L avg monthly balance | Premium cards, family banking, lockers, concierge |
| Axis Bank | Priority / Burgundy | ₹2L (Priority) / ₹10L+ (Burgundy) | Unlimited ATM use, insurance cover, EDGE points |
| HDFC Bank | Imperia | ₹10L–₹30L total relationship value | Airport lounges, preferred rates, invitations |
| ICICI Bank | Wealth / Privilege Banking | ₹3L–₹25L avg balance or ₹50L TRV | Wealth mgmt, curated offers, health check-ups |
| Kotak Mahindra Bank | Solitaire | Invitation-only | ₹8 Cr credit lines, tailored solutions |
| Suryoday SFB | Espire / Arise / Supremis / Gloria | ₹7.5L–₹25L avg balance | ₹50L insurance, spa/gym/golf access |
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How to Decide If It’s Worth It
Ask yourself:
- Do I use enough of these perks to justify the locked balance?
- Can I negotiate for better interest rates or benefits with my existing bank without moving to premium?
- Would the same money earn more if invested elsewhere?
Final Thoughts
Premium banking in India offers unmatched convenience and exclusive privileges for the right customer profile. But for many, the benefits may not outweigh the capital tied up in low-yield accounts. Think of it less as a “status symbol” and more as a service decision—if the perks align with your lifestyle, it can be a powerful tool in your financial toolkit.
