If you’re eyeing The Platinum Card from American Express but feeling hesitant due to its steep $695 annual fee, fret not. We’re here to unveil some crafty strategies that can help you significantly reduce, or perhaps even eliminate, that annual fee. Whether you’re a member of the military, a seasoned retention offer seeker, or someone with significant assets in a Charles Schwab or Morgan Stanley account, we’ve got your back.
1. Military Lending Act (MLA) for Active Duty
Are you an active-duty military member? If so, the Military Lending Act (MLA) is your golden ticket to a fee-free Platinum Card. This powerful act waives annual fees for personal American Express cards (excluding business cards). It’s an option for the standard Platinum, the Platinum Schwab, and the Platinum Morgan Stanley cards. However, exercise caution when considering canceling these cards once you no longer qualify for MLA. Maintaining a robust credit history is essential, and you may want to have other cards with no annual fees to preserve your credit standing.
2. Retention Offers: A Strategy for Non-Service Members
For those who don’t have the benefit of MLA, retention offers can be a brilliant way to offset a portion of the annual fee. These are targeted rewards specifically offered to cardmembers who are up for renewal, designed to give you an attractive reason to stick around.
Here are some key considerations when pursuing a retention offer:
- Avoid canceling or downgrading your card within 12 months of accepting a retention offer. Doing so could lead to consequences like being banned from American Express.
- Don’t rush to request a retention offer immediately after opening your card or even within the first few months. Wait until you reach the 11-month mark to ask for a retention offer.
- The general rule of thumb is that you can typically get a retention offer every other year for a card, though results can vary.
3. Amex Platinum Charles Schwab Strategy
The Platinum Card from American Express comes in various flavors, including a co-branded version with Charles Schwab. This unique variant not only offers the same benefits as the standard Platinum Card but also gives you the ability to cash out Membership Rewards at a favorable rate of 1.25 cents per point via Schwab.
However, unlocking this strategy requires a significant financial commitment:
- To receive a $100 statement credit, you’ll need qualifying Schwab holdings of over $250,000.
- For a more substantial $200 statement credit, you’ll need holdings exceeding $1 million.
It’s important to emphasize that these statement credits are exclusive to the Schwab version of the Platinum card. To access this version, you must apply for it directly and have an existing Schwab account. Please note that you cannot convert or “product change” from the regular Platinum card to the Schwab variant.
4. Amex Platinum Morgan Stanley Strategy
If you’re intrigued by the possibility of reducing your Platinum Card’s annual fee but don’t quite meet the Charles Schwab level, consider the co-branded Amex Platinum Morgan Stanley card. This strategy is tailored to individuals with Morgan Stanley accounts, and you’ll find the “Access Investing” option appealing due to its reasonable $5,000 requirement.
It’s essential to remember that individual results may vary, and your experience may not precisely mirror that of the average account holder.
Here’s what makes the Morgan Stanley Platinum card strategy so enticing:
- By opening an Access Investing account with $5,000, you become eligible to have the full $695 annual fee waived if you meet the qualifying requirements.
- In the past, these requirements involved: opening the Access Investing account, transitioning to “CashPlus,” and spending $100,000 on the associated debit card to receive a $695 engagement bonus.
While spending $100,000 on a debit card might seem ambitious, it could be attainable if you have significant expenses, such as playing poker with friends or making substantial tax payments.
As a helpful reminder, it’s essential to review the terms and conditions, particularly since changes may occur over time. For example, in early 2020, Morgan Stanley replaced the “Premier Cash Management” program with “CashPlus.” If you already have the Morgan Stanley Platinum card, keep in mind that engagement bonuses might be available only for new cards opened in connection with the “Platinum CashPlus” account.
Remember to do the math and assess the strategy’s suitability for your financial situation. In the case of the CashPlus program, while $5,000 in monthly deposits might be achievable for most people, the $25,000 average daily balance may not be as enticing, considering the account doesn’t accrue interest. It’s effectively equivalent to a competitive 2.2% APY, which may or may not justify parking $25,000 in the account.
For existing Morgan Stanley Platinum cardholders, there could be limitations. The terms suggest that engagement bonuses are typically available only for new cards opened in connection with the “Platinum CashPlus” account. To understand the nuances, please review the specific terms and conditions.
In summary, while these strategies offer exciting possibilities for reducing The Platinum Card from American Express’s annual fee, remember that the financial landscape is constantly evolving. Always verify the current conditions with American Express, Charles Schwab, and Morgan Stanley. By carefully considering these strategies and ensuring they align with your financial goals, you can make the Platinum Card work for you, even with its annual fee.
