Originally Posted by
Stockjock
That's not correct. Preferred Savings is not "an AAA account". However, qualifying cash could potentially be purchased within an AAA account, or a CashPlus account, which is not an AAA account, or an IRA, which is also not an AAA account.
While an AAA account could potentially qualify as a brokerage account, it would be subject to a $175 annual fee unless fee waiver requirements are met. This would be separate from any potential CashPlus fees, again, if fee waiver qualifications are not met. I believe at $1,000,000 in total assets, things like AAA fees and annual IRA fees are waived. For those who cannot or don't wish to meet that level, as mentioned, the AAA or account fee can be waived in a managed account, such as CGA (Consulting Group Advisor) or Select UMA (Unified Managed Account). However, one would pay a management fee for services rendered on those accounts.
Actually, your information is incorrect. I called to open a Preferred Savings within the past few days. The MS rep explained that the Preferred Savings is a
program and not an individual type of account. In order to get me enrolled into Preferred Savings, he'd need to open up a qualified brokerage account. Then, upon transferring cash into the brokerage account, I am to call up an advisor and ask them to move that cash into the Preferred Savings program.
The MS rep helped open this qualified brokerage account for me, which ended up being an AAA. He stated that the AAA has a $150/year fee and that
this fee is waived as long as I keep $25k in the preferred savings program. And because I now have an AAA account (as a stepping stone to the preferred savings program), I now hold an eligible brokerage account to qualify for the MS Platinum card.
This is completely separate from a CashPlus account. You do not need to have a CashPlus account to get an MS Platinum card.