How the Amex Platinum Card for Schwab Could Help You Invest More

The Platinum Card® from American Express is mainly known as a luxury card. It has a huge $695 annual fee (see rates and fees). But it also has over $1,500 in annual spending credits, amazing airport lounge access, plus plenty of other airline and hotel benefits. Select enrollment required and terms apply.

Most of its features are travel- or lifestyle-related. What a lot of people don't realize is that there are multiple versions of this card, including one that's great for investors. The American Express Platinum Card® for Schwab has the same features and some Schwab-specific benefits, too.

It's available to Charles Schwab clients with an eligible account. The broker's Schwab One® and Schwab General Brokerage Account options both qualify, as do its Traditional, Roth, and Rollover IRAs. If you're a Schwab client or thinking about becoming one, this American Express card has an especially valuable perk that could help you boost your investments.

Invest your points

Like many other American Express cards, the American Express Platinum Card® for Schwab earns points. There are several ways to use American Express points. You normally get the most value by transferring them to travel partners. This allows you to book airfare or hotel stays in points. Terms apply.

The American Express Platinum Card® for Schwab also lets you deposit your points to your eligible Schwab brokerage account. Rewards are worth $0.011 per point this way. You only get $0.006 per point on cash back redemptions, so you get nearly twice as much value by investing your points. Terms apply.

It's worth mentioning that you can still potentially get more value by transferring your points. For example, if you transfer your points and use them to book business-class airfare, it's possible to get $0.03 per point or more. But finding these high-value opportunities can be difficult.

Investing your points is easy, and you can do it at any time. So this is a useful option in any of the following situations:

• You're a big spender and end up with more points than you can use on travel.
• You don't have any trips to book in the near future.
• You want to prioritize your investment portfolio right now.

Over time, this can make a significant difference for your portfolio. Let's say you earn and invest 100,000 points per year. At a rate of $0.011 per point, that's an additional $1,100. And we'll assume you get an 8% annual return, which is in line with the stock market's average.

In 10 years, you'll have an additional $17,210. Keep this up for 30 years, and you'll have $134,580. That's on top of any money you're already investing.

Premium perks and more money to invest

Remember that the American Express Platinum Card® for Schwab still has the same premium perks. For example, you still get access to over 1,400 airport lounges, including the vaunted Centurion Lounges. You still get Hilton Honors Gold Status and Marriott Bonvoy Gold Elite Status, and all kinds of annual spending credits. Select enrollment required and terms apply.

So, if you're looking to upgrade your travels while also investing more, this card could be a match. You'll need an eligible Schwab account, but opening one is a quick process, and Schwab is one of the most highly rated stock brokers.

There's also a Schwab Appreciation Bonus available to cardholders who meet substantial balance requirements. You can receive:

• A $100 statement credit if your qualifying Schwab holdings are equal to or greater than $250,000 and less than $1 million
• A $200 statement credit if your qualifying Schwab holdings are equal to or greater than $1 million and less than $10 million
• A $1,000 Schwab Appreciation Bonus if your qualifying Schwab holdings are equal to or greater than $10 million
• Terms and limitations apply.

If you don't want to pay such a high annual fee for a card, cash back credit cards are another option. You could open a cash back card, deposit your cash back to your bank account, and then send that money to your brokerage account. It's not quite as smooth, but it's another way to invest using rewards earned on credit cards.