Morgan Stanley Private Bank: Insured Accounts Explained

Accounts at Morgan Stanley Private Bank are insured for up to \$500,000 per customer, per account. This is twice the amount offered for a deposit account at most banks. The bank offers a savings account with a competitive annual percentage yield (APY) and no minimum deposit requirements. The Premium Savings Account receives Federal Deposit Insurance Corp. (FDIC) coverage of up to \$500,000 for individual accounts and up to \$1 million for joint accounts. Morgan Stanley also offers a CashPlus Brokerage Account, which provides unlimited ATM fee rebates worldwide and exclusive identity and credit protection from Experian at no additional cost.

Premium Savings Account

The Premium Savings Account from Morgan Stanley Private Bank offers a competitive annual percentage yield (APY) with a rate 9x the national average. For every $10,000 deposited in your account, you can expect an annual return of $425. This account also offers Federal Deposit Insurance Corporation (FDIC) protection of up to $500,000 for individual accounts and up to $1 million for joint accounts, which is twice the amount offered by most banks. There are no monthly service fees or minimum deposit requirements, and you can easily move money between accounts with the Transfer Money service. The mobile app allows you to manage your money from anywhere, and free tools are available to help you build your emergency savings.

The Premium Savings Account is well-suited for those who want to consolidate their banking and investing at a single financial institution. It is important to note that cash deposits are not accepted, and the account must be funded within 30 days of opening to remain open.

Morgan Stanley Private Bank Overview

Morgan Stanley Private Bank, formerly known as E-Trade Bank, offers a range of banking products and services, including savings and checking accounts. Their savings account is particularly notable for its competitive APY and enhanced FDIC coverage. The checking account options include a standard interest-bearing account and the Max-Rate Checking Account, which offers a higher APY but requires a minimum balance of $5,000 to waive the $15 monthly fee.

Overall, Morgan Stanley Private Bank provides convenient online banking services, competitive yields, and low fees. Their accounts are FDIC-insured, providing an extra layer of protection for your funds.

CashPlus Brokerage Account

The CashPlus Brokerage Account is a modern alternative to traditional banking, providing more value, more protection, and a seamless digital experience.

Exceptional Access and Value

With the Morgan Stanley Debit Card, you can access your cash from any bank or teller that accepts Mastercard®. You get unlimited ATM fee rebates worldwide, no foreign transaction fees, and no cash advance fees. You can also receive a complimentary Greenlight App and Debit Card for family members.

Comprehensive Protection

You gain peace of mind with exclusive Identity and Credit Protection from Experian®—including Monthly 3-Bureau Credit Reports and Real-Time Credit Alerts—along with enhanced Mastercard benefits like Extended Warranty, Satisfaction Guarantee, and Price Protection. The account also includes SIPC and FDIC coverage.

Seamless Digital Experience

Enjoy an enhanced view of cash activities, along with a suite of self-service capabilities, including debit card lock and unlock, alert setting, bill pay, easy money movement, eAuthorizations, and access to tools to transfer and manage your cash via Morgan Stanley Online or the Morgan Stanley App.

Fee Avoidance

There is a monthly account fee of $15 for the Premier CashPlus account and $55 for the Platinum CashPlus account. However, these fees can be avoided by meeting certain criteria. For the Premier CashPlus account, you need to have either $2,500 in total monthly deposits or a $10,000 Average Daily Cash Balance, along with an additional eligible Morgan Stanley investment account and Morgan Stanley Online enrollment. For the Platinum CashPlus account, you need to have $5,000 in total monthly deposits and a $25,000 Average Daily Cash Balance, along with an additional eligible Morgan Stanley investment account and Morgan Stanley Online enrollment.

Eligibility

To open a CashPlus Brokerage Account, you must be a Morgan Stanley client.

FDIC Insurance

Morgan Stanley Private Bank offers FDIC insurance on its Premium Savings Account, which has no monthly fees and a competitive APY. The account can be opened with no minimum deposit, but it must be funded within 30 days to remain open. The account also offers unlimited ATM fee rebates and check-writing privileges.

The bank also offers FDIC insurance on its Max-Rate Checking Account, which bears interest and requires no minimum opening deposit. However, to avoid a $15 monthly fee, account holders must maintain an average balance of at least $5,000.

Additionally, Morgan Stanley's CashPlus Brokerage Account provides FDIC coverage of up to \$500,000 per customer, per account. This account offers a range of benefits, including unlimited ATM fee rebates worldwide, complimentary identity and credit protection, and no cash management fees.

It is important to note that Morgan Stanley has two FDIC-insured banks: Morgan Stanley Private Bank, National Association (MSPBNA) and Morgan Stanley Bank, N.A. (MSBNA). As a result, clients can get double the insurance coverage compared to most other banks, with up to \$500,000 in FDIC coverage through each of these banks.

Lending Solutions

Morgan Stanley offers a range of lending solutions to help clients meet their financial goals. These solutions are designed to complement investment strategies and provide access to funds for various purposes.

As a client, you may be eligible for securities-based lending solutions, which can help provide liquidity for real estate, business opportunities, estate planning, and more. Their Liquidity Access Line (LAL) is a securities-based line of credit that allows you to access cash without selling your securities. This can be useful if you're looking to expand your business, fund real estate needs, pay taxes, or cover other large expenses.

Additionally, Morgan Stanley offers a suite of home lending solutions, including potential preferred pricing and rate discounts based on your existing relationship with the company. Whether you're purchasing, refinancing, or tapping into your home's equity, they can help you find the right financing option.

They also provide relationship-based pricing for mortgage products, where you and your family members may receive discounted mortgage rates or closing cost credits based on your relationship with Morgan Stanley.

It's important to note that borrowing against securities may not be suitable for everyone, and there are risks associated with securities-based loans, including possible maintenance calls on short notice and potential interruptions to long-term investment strategies.

To explore these lending solutions further, you can contact a member of the Morgan Stanley team or schedule a consultation with a Financial Advisor.

Certificates of Deposit

CDs typically offer higher interest rates than regular savings accounts but require you to keep your money in the account for the entire term. Withdrawing funds early usually incurs a penalty. There is no minimum deposit requirement for CDs at Morgan Stanley Private Bank, and interest compounds daily.

When you open a CD, you can fund it via ACH, wire, or check. Once the CD matures, you have a grace period of seven calendar days to decide what to do with the funds. You can withdraw your money and transfer it to another type of account, use the funds to open a new CD, or allow your CD to automatically renew with the same term at the rate effective as of the maturity date.

If you fund your CD within the first 10 days of opening the account, you will automatically lock in the higher of the rate on the date you opened your CD or the date you funded it.

Insurance

CDs at Morgan Stanley are insured by the Federal Deposit Insurance Corporation (FDIC), an independent agency of the US government, up to a maximum amount of $250,000 (including principal and accrued interest) for all deposits held in the same insurable capacity (e.g. individual account, joint account, IRA, etc.) per CD depository.

Morgan Stanley Private Bank, National Association, and Morgan Stanley Bank, N.A. are Members FDIC that are primarily regulated by the Office of the Comptroller of the Currency.

Frequently asked questions