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The Morgan Stanley Platinum card from American Express is the most underrated card out there because of Morgan Stanley’s new Platinum CashPlus account, which now offers a $695 Annual Engagement Bonus (previously $550) to cover the entire annual fee on the card.
The Platinum CashPlus account normally carries a $45 monthly fee, but the fee can be waived with a $25,000 average cash balance and $5,000 in monthly transfers into the account.
This method could be a great way to receive the $695 annual engagement bonus, which can be used to pay the annual fee on the card every year.
In addition, the Morgan Stanley American Express Platinum card also comes with one free Platinum authorized user.
Before we dive into the details of the $695 Annual Engagement Bonus, you should be aware that Morgan Stanley updated the terms of the Annual Engagement bonus in July 2021 since it was such a good deal.
Morgan Stanley has now changed the timing of the payment of the $695 Annual Engagement bonus depending on which investment accounts you have with Morgan Stanley. This change only should affect Platinum CashPlus accounts opened on or after July 2021.
If your only Morgan Stanley investment account is an Access Investing account ($5,000 minimum investment), then the Annual Engagement Bonus will be paid out 12 months after opening an American Express Morgan Stanley Platinum card. You would then receive the Annual Engagement Bonus again every 12 months assuming you maintain a qualifying Platinum CashPlus account and American Express Morgan Stanley Platinum card. For example, you should receive the $695 Annual Engagement Bonus in months 12, 24, 36, 48, etc.
If you have a different Morgan Stanley Investment account (non-Access Investing), then the Annual Engagement bonus is paid out around 2-3 months after opening the American Express Morgan Stanley Platinum and Platinum CashPlus account. In subsequent years, the Annual Engagement bonus would then be paid in months 12, 24, 36, etc. However, Morgan Stanley typically requires a $100,000+ investment for their investment or wealth management accounts, so this might not be an option for most people.
There are a few steps to get the $695 annual engagement bonus.
First, you need to open an investment account with Morgan Stanley, which is a requirement to get the card. The most popular way is to invest to at least $5,000 with the Morgan Stanley Access account.
However, you only have until November 31, 2022, if you want to sign-up a Morgan Stanley Access account. After that, the account is closed to new-sign ups, and you will need a traditional Morgan Stanley investment account.
This automated investment account comes with a 0.30% annual fee ($15 per year for $5,000 invested), but Morgan Stanley helps you balance your portfolio based on your goals and risk tolerance.
This investment account also qualifies you to open a CashPlus bank account. The CashPlus debit card has unlimited ATM fee rebates worldwide and no foreign transaction fees.
You can get a “$695 Annual Engagement Bonus,” which can be used to pay the annual fee on the card every year.
The Platinum CashPlus account is fee-free if you maintain $5,000 in total monthly deposits AND a $25,000 average daily cash balance.
Morgan Stanley broadly defines monthly deposits to include payroll, social security, Zelle, mobile check deposits, wires and any external transfers, so that requirement should be fairly easy to meet. Plus, any amount of social security benefits deposited each month will waive the $5,000 monthly deposit requirement.
The one disadvantage of the CashPlus account is that it only pays out almost no interest.
But you are better off with the $695 annual engagement bonus with the CashPlus account as long as a different checking account doesn’t earn more than 2.78% APY ($695/$25,000 = 2.78%).
If you don’t meet the monthly requirements, there is a $45 monthly fee. However, the monthly fee increases to $55 per month in February 2022.
But even if you don’t meet the requirements, you are still $10 better off by signing up for the Platinum CashPlus account ($45 x 12 = $540). Or if you only meet the requirements half the time, it would cost $270 ($45 x 6).
Additionally, there is a two month fee-free grace period for your first two months of your CashPlus account.
The fine print for the $695 annual engagement bonus is:
Morgan Stanley says eligible deposits include:
Additionally, the $5,000 monthly transfer requirement is waived if any amount of Social Security benefits are deposited into your account (e.g., if $1,000 in social security benefits are deposited into the account, then you don’t need to meet the $5,000 transfer requirement).
“Transfers from a Morgan Stanley non-retirement account do not qualify as a monthly recurring deposit into your CashPlus Account.”
“In order to avoid the monthly Platinum CashPlus Account fee, you must open and/or maintain an additional eligible Morgan Stanley investment account. Eligible investment accounts include, but are not limited to, a AAA Account, Self Directed Brokerage Account, Morgan Stanley Access Investing Account, or a discretionary/ nondiscretionary Advisory Account or program through Morgan Stanley’s Advisory Program. Retirement Plan accounts, including IRAs, are currently not eligible.”
If you have questions about whether a specific account qualifies, please contact Morgan Stanley.
We believe that existing American Express Morgan Stanley cardholders don’t qualify because the Morgan Stanley’s Disclosures state:
“We will only pay an Annual Engagement Bonus to new American Express Platinum cards opened in connection with your Platinum CashPlus Account. You will not receive an Annual Engagement Bonus for an American Express Platinum card not issued in connection with your Platinum CashPlus Account.”
“Your Platinum CashPlus Account must be open and your American Express Platinum Card must be opened in connection with your Platinum CashPlus Account and must be open at the time the Engagement Bonus is paid.”
When the engagement bonus increased from $550 to $695, Morgan Stanley changed the language regarding whether the Annual Engagement bonus would be reported to the IRS.
Because the change happened in 2021, it is unclear right now if the bonus will be reported to the IRS as taxable income similar to a bank sign-up bonus.
Current Language: “ You may be subject to tax and information reporting with re spe ct to any Annual Engagement Bonus. Morgan Stanley may be required to report the 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 Annual Engagement Bonus, based upon your specific circumstances .”
Previous Language: “ You may be subject to tax and information reporting with respect to any 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.”
