Originally Posted by
radonc1
I will add my 2 cents to this discussion. I am qualified to do so since I have had a MS Plat card for at least the past 5 or
more years. MS has compensated me for this card due to my large position in MS.
My wife also has a very large position in MS but does not do very much trading whereas I do.. But her account still generates income for MS. I wanted her to get her own Plat card in her own name.
This is what my advisor discovered was the requirements for this card.
1. A DD to her account. Already done.
2. A non-interest bearing $25K savings account.
3. Any account fee was waived due to the size of her account.
I can't see the viability of doing this. If you can deposit your $25K in a 5% account, that will generate $1250 a year in income. It would be cheaper get your own Plat card, pay the AF and still collect several hundred more in interest than giving MS an interest free savings account.
So she will remain an AU, and we will have to spend $70K/yr to qualify her to enter a Centurion club without a fee. Or just pay the stupid fee for the few times we might use their club.
But for the time being, MS is not going to be an option for my wife. So far, nothing changes for me (apparently I am grandfathered in and don't have to meet their requirements.)
The $25k "interest-free savings account" is actually a checking account. If you aren't using MS for that, then it would just be a dormant checking account but you'd accumulate money in it because of the required deposits. You can also have preferred savings and other investments within this account if you like, but really if you aren't interested in using it as your main account there's not much point. Nobody is paying 5% anymore and the AMEX Plat annual fee is going up soon, so it will be a much closer call now. In my case I keep enough money to pay bills in the checking account anyway, so making sure it stays over the $25k average daily balance mark doesn't actually require me to set aside a full $25k. Also, if I do go below in a particular month there's just a $55 monthly fee and sometimes they'll waive that.
Just FYI, an AU is not a "guest" for Centurion lounge purposes, they are a cardholder. They can get into the lounge on their own with their AU card no matter how little is spent in the account per year. There's probably very little reason to have her get her own card vs. being an AU unless you want to double up on the various benefits. Edit: Also note that the guest restriction is only at actual AMEX Centurion lounges. Your wife as an AU is able to get her own Priority Pass Select card for non-Centurion lounges and those allow two guests in most places. So between the two of you that's a total of six people who can get in to Plaza Premium and Priority Pass lounges. Even lounges that don't take Priority Pass but do take the AMEX will allow additional guests at no charge and without the $75k spend requirement.
If you have truly large positions I'd ask if there's anything more they can do--I'm sure nobody wants to lose your business over this. A permanent fee waiver on the CPP account so you don't have to keep $25k in it might be an option, IDK.
Originally Posted by
Eneka
Yup can confirm. I have the free AU card on my partner's MS Amex Plat account. I can enter Centurion lounges by myself.
$25k @ 5% is nice, but once you throw in taxes and the free AU, it's really a wash!
Being a MS customer also granted us access to their home mortgage services. Their rates were by far better than anyone else and very easy to close with!
i think we need to clarify a few things here.
1) wen we talk about AU, lets make sure we are referring to the free MS amex personal plat AU (other consumer plats charge $195 per plat AU) vs plat "companion card".
there is also the no AF white companion card for consumer plats but w/ no benefits. this is why pple are interested in the free MS amex plat AU benefit which includes cent + DL lounge and PPass. this would normally cost $195/year.
u could also spend $75k on the MS plat. that would give u 2 guests on all plat cards under the MS. hence the value of MS plat to many pple.
if u dont spend $75k then just get the free MS plat AU (not white) for P2.
2) if ur already a MSAI client, the requirements are not complicated to keep ur MS amex plat.
open AAA. liquidate MSAI. transfer cash. subscribe to pathways UMA. $1k minimum. keep ur MS amex plat and pay the AF.
above is just 1 simple example. u dont have to keep plat CPlus. u dont have to do all that fee waiving nonsense if ur not interested. pple are reading DPs from too many n00bs and getting confused.
u can even just keep $1k in plat CPlus and pay $55/mo to get e-bonus. altho its risky for shutdown.
3) note to radonc1:
ur entire setup is confusing. not sure wat terrible info ur advisor gave u.
u said both u and ur wife has significant assets w/ MS? then not sure why u gotta spend $75k/year? (btw. not $70k).
do u guys have joint accounts? if u each have separate MS accounts, just be sure to have qualifying accounts for MS amex plat. then ur wife could apply on her own. no need to be AU on ur card. but even if she was, theres still no need to spend $75k unless u want more guests.
thats why im confused.