Get The Amex Platinum Free With Some Big Strings Attached

Get The Amex Platinum Free With Some Big Strings Attached

The Morgan Stanley Amex Platinum Card is one of the version of the Platinum Card by American Express. This card is similar is similar to the other versions such as, Amex Platinum and Charles Achwab Amex Platinum cards. The card comes with a $550 annual fee and all the benefits that the other versions offer. The good thing about having different versions of the Platinum Card, is that you can sign up for each one and receive the welcome bonus once for each per lifetime. They are considered separate products.

For the Morgan Stanley Amex Platinum Card now there is a new option to waive the annual fee. It’s not an easy or free process, but combined with a 60K Membership Rewards bonus, could be a good option if you want the card’s benefits and a chunk of points.

Morgan Stanley Amex Platinum Card

The card has a $550 annual fee that is not waived the first year. Currently you can get the following signup offer:

• 60,000 Membership Rewards® points after you spend $5,000 in purchases on the Card in the first 3 months of Card Membership.

Most benefits are the same as other Platinum cards, except for:

• Add one additional Platinum Card for no fee. The additional cardholders gets most benefits, besides the credits.
• As a Morgan Stanley Card Member, you can use Membership Rewards points for deposits by Morgan Stanley to your qualifying brokerage account. (For example, 60,000 points = $600.

You can find the application page here.

Waiving the Annual Fee

Morgan Stanley offers a new Platinum CashPlus account that can waive the annual fee on your Morgan Stanley Amex Platinum Card. Platinum CashPlus clients can get a $550 Annual Engagement Bonus if they have The Platinum Card® from American Express Exclusively for Morgan Stanley. There are some thing to know before getting too excited. It takes some work and you need a balance to waive fees. Here’s how it works in a few steps:

• Open a Morgan Stanley Access investing and maintain at least $5,000 in the account. This account has an annual fee of 0.35% ($17.50 per year for $5,000 invested). This makes you eligible for the Platinum CashPlus account.
• After that, you can open the Platinum CashPlus account and register for online access (more details on the account below).
• Sign up for the Morgan Stanley Amex Platinum Card
• Get the $550 Engagement bonus during your first year after a month if you meet the fee avoidance criteria and within three months if you don’t meet the fee avoidance criteria. For subsequent years, the annual bonus will be paid in the month after your American Express Platinum account anniversary.

Deals Points has a thorough explanation.

Morgan Stanley Platinum CashPlus Account

The Morgan Stanley Platinum CashPlus account has a $45 monthly fee that can be waived with the following activities:

• Maintain $5,000 in total monthly deposits AND
• $25,000 average daily cash balance.

The $5,000 in monthly deposits doesn’t have to be direct deposits. Things like Zelle and regular ACH transfers will count. See more details here.

That is a large amount that you need to keep in the account, and what makes it worse, is that your only earn a 0.03% APY.

If you do not fulfill these requirements and pay the monthly fee of $45, then you end up paying $540 for the year. You come out $10 ahead annually compared to the $550 annual fee on the Morgan Stanley Amex Platinum Card. But add in the investing account and the hassle, and it doesn’t make sense.

Also not the following terms about avoiding paying tax on the $550 Annual Engagement Bonus:

• If you do not meet a minimum spending requirement of $1,000 on your American Express Platinum Card within the calendar year of receiving the $550 Annual Engagement Bonus, then Morgan Stanley may be required to report the $550 Annual Engagement Bonus as taxable income on your Form 1099. You should consult your tax advisor regarding the tax implications of any awards, including the $550 Annual Engagement Bonus, based upon your specific circumstances.

Analysis

You get the $550 Engagement bonus that completely offsets the fee, but it comes at a cost.

You need to have about $30,000 tie up in the two accounts, and you need to make $5,000 in monthly transfers. That means you are getting $550 annually for a $30K investment (in both accounts), or just a 1.83% APY (about 2.02% APY when you add the 0.3% you earn from the account, and 0.35% you pay for the invest account). That’s better than most banks out there, but not by much.

Conclusion

This could be a good option to offset your $550 annual fee on the Morgan Stanley Amex Platinum Card, especially if you already have an account.

Plus you get a 60,000 Membership Rewards bonus and the perks that comes with the Amex Platinum Card.

Disclosure: Miles to Memories has partnered with CardRatings for our coverage of credit card products. Miles to Memories and CardRatings may receive a commission from card issuers.

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