Ameriprise Financial Overview
Ameriprise Financial (member of SIPC) is one of the oldest investment firms in the country. Founded in 1894 they provide a vast variety of services and products. With over $700 billion in assets, they rank in the top
10 providers of financial planning, including mutual funds, annuities and insurance products. This historic customer focused company has never taken a bailout.
Ameriprise is not a one package fits all investment firm. The investment options Ameriprise offers are too diverse to be able to list all of them here,
and client’s needs are taken into consideration when developing their financial portfolio. Ameriprise fees and interest rates vary depending on the type of investment
you have and how aggressively you invest.
Ameriprise CDs
The least aggressive and safest form of investment that Ameriprise offers is the Certificate of Deposit better known as the CD account. Ameriprise does not charge a sales fee for CD’s. Although CD’s
typically earn a higher interest rate than standard savings accounts, they are still fairly low interest earning investments, and require that the funds deposited be tied up for a minimum period of time.
As with any interest earning account the interest rates fluctuate with the market. But, where CD’s differentiate from savings accounts in this way is that you are locked into the interest rate you had
when opening the CD for the duration of the time commitment. This is good when interest rates are high in order to lock in at the higher rate
before rates fall again.
Ameriprise’s interest rates on CD’s ranged from 0.30% for 3 month CD to 1.45% for 36 month CD. Investments of over $100,000 get
a 0.05% higher rate. Another thing to keep in mind when considering a Certificate of Deposit, is that certain
types of CD’s require a minimum deposit.
Ameriprise Fixed Annuity and Money Market Accounts
CD’s are only the beginning of the investment tree, other types of accounts that tend to be on the more cautious side of investing are the
fixed annuity and money market accounts. Fixed Annuities are investments with insurance companies that work similar to CDs, but have a slightly
higher return on investment due to having a slightly higher risk, because you are investing in an insurance company rather than depositing into
a bank. Annuities also require your investment to be tied up for a longer period of time; the most common lengths of time being 7 or 10 years,
but can either pay you a monthly dividend check or redeposit the dividend into the annuity investment for greater growth. If you choose to
withdraw your money before the end of the account term there is a penalty that can range from 1% to 10% depending on the contract and the
company.
Money Market accounts work more like a higher interest earning checking account. Your initial investment is tied up for a period of time,
but you can access it on a limited basis if needed.
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Ameriprise IRAs
Another type of investment account that Ameriprise offers is the IRA. An IRA is a tax deferred plan that can encompass many types of investments
from CDs to Annuities to Mutual Funds which contain Stocks and/or bonds. Rules for IRA’s are federally mandated since these are tax deferred
accounts making them much more rigid in terms of locking your money up for a period of time.
Although IRA’s were originally designed to be a retirement account, there are different kinds to meet different needs, such as a ROTH IRA which
is more easily accessed for things such as college tuition, but there is still a limit on the amount that can be withdrawn without a penalty
and the reason for the withdrawal has to meet one of the governments criteria. Currently Ameriprise’s annual fee for a standard IRA is
$50 per year.
Ameriprise Mutual Fund
The Mutual Fund is a trust account that can contain stocks and/or bonds within its portfolio. The rate of return you receive on a Mutual Fund is depends on how
aggressively you structure your Mutual Fund with stocks, bonds or the combination of both. Most Mutual Funds are structured by aggressiveness and offered to the
investor in that way. The fee for Mutual funds varies depending on the fund and the size of the investment. Currently Ameriprise’s standard fee for Mutual funds
is $39.95 per transaction - about average among online brokers, but much higher than at
Ally Invest.
Ameriprise Stocks
Ameriprise also offers direct online stock purchasing to its clients for a nominal fee of $25.95 per trade, which is much higher than what many companies listed in our
Brokerage Reviews charge. Broker assisted trade charge is a minimum of $50 per trade and can be as much as 1.5% of the trade amount.
The types of accounts listed above barely scratch the surface of the investment options offered by Ameriprise Financial. For more detailed account information on a portfolio that might meet your needs contact an Ameriprise Financial Advisor directly.
Ameriprise Brokerage Fees
| Fee amount |
Fee may be waived if one or more of the following conditions are met |
| Ameriprise® Brokerage Account |
| $100 per year ($25 per quarter)1 |
An account holder is recognized as an Ameriprise Achiever Circle Elite2 member |
| |
The account is open less than three months |
| |
The account holds only alternative investments and there is a managed account in the same ownership |
| |
The household group has paid $300 in brokerage account maintenance and/or custodial fees for the calendar year |
| |
The taxpayer on the account is an Ameriprise employee, advisor, franchisee or employee of a franchise advisor |
| Ameriprise® Brokerage 529 Plan Account |
| $25 per year |
An account holder is recognized as an Ameriprise Achiever Circle Elite2 member |
| |
The household group has paid $300 in brokerage account maintenance and/or custodial fees for the calendar year |
| |
The taxpayer on the account is an Ameriprise employee, advisor, franchisee or employee of a franchise advisor |
| Ameriprise® Brokerage Investment Only Account |
| $100 per year ($25 per quarter)1 |
The account holds only alternative investments and there is a managed account in the same ownership |
| |
The account is open less than three months |
| |
The plan contains only a managed account, annuity or Ameriprise Certificate |
| Ameriprise® Coverdell Education Savings Account (CESA) |
| $10 per year |
An account holder is recognized as an Ameriprise Achiever Circle Elite2 member |
| |
The account is recognized as a grandfathered lifetime custodial fee-waived plan
The household group has paid $300 in brokerage account maintenance and/or custodial fees for the calendar year (excludes fees charged to mutual fund accounts held outside of an Ameriprise Brokerage account or Ameriprise ONE Financial Account)
|
| Ameriprise® Tax-Sheltered Custodial Account (TSCA) |
| $50 per year |
An account holder is recognized as an Ameriprise Achiever Circle Elite2 member |
| Ameriprise® Custodial 401(a) Plan Account |
| $75 per year |
Fee may be waived if only invested through a managed account, annuity or Ameriprise Certificate |
| Ameriprise® Individual Retirement Account (IRA) |
| $75 per year |
An account holder is recognized as an Ameriprise Achiever Circle Elite2 member |
| |
The IRA is invested through only a managed account, annuity or Ameriprise certificate |
| |
The IRA plan is recognized as a grandfathered lifetime custodial fee-waived plan |
| |
The account holds only alternative investments and there is a managed account in the same ownership. |
| |
The household group has paid $300 in brokerage account maintenance and/or custodial fees for the calendar year |
| Ameriprise ONE® Financial Account |
| $100 per year ($25 per quarter)3 |
An account holder is recognized as an Ameriprise Achiever Circle Elite2 member |
| |
The account has a direct deposit of $9,000 within the preceding quarter |
| |
The account is open less than three months |
| |
The account holds only alternative investments and there is a managed account in the same ownership |
| |
The household group has paid $300 in brokerage account maintenance and/or custodial fees for the calendar year |
| |
The taxpayer on the account is an Ameriprise employee, advisor, franchisee or employee of a franchise advisor |
Account maintenance and custodial fees apply to the accounts listed above; they do not apply to managed accounts. For more information about fees assessed to managed accounts, contact an Ameriprise financial advisor.
1 Quarterly nonqualified brokerage account maintenance fees will be assessed in January 2020 at the rate of $12.50 per quarter for Ameriprise Brokerage.
2 Eligibility for recognition in the Ameriprise Achiever Circle Elite program is achieved through maintaining a household group value with Ameriprise Financial of $500,000 or more. A household group consists of accounts owned by an individual, their spouse or domestic partner, and their unmarried children under the age of 21 who reside at the same address.
3 Quarterly nonqualified brokerage account maintenance fees will be assessed in January 2020 at the rate of $20 per quarter for Ameriprise ONE Financial Accounts (this fee covers the fourth quarter of 2016, which is why the quarterly fee is assessed at the previous rate).
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Ameriprise Brokerage Service Fees
| ADR4 |
Variable |
| Cash Debit5 |
Variable |
| Certificate Delivery |
$80 |
| Check Copy |
$3 per copy |
| Custody/Safekeeping — Worthless6 |
$25 per CUSIP/per year |
| Debit Card Receipt Copy |
$10 per copy |
| Deposit/Withdrawal at Custodian (DWAC)7 |
Variable |
| Direct Registration System (DRS) Request Fee8 |
Variable |
| Express Mail — Domestic |
$25 |
| Express Mail — International |
$35 |
| Invalid Certificate9 |
$125 |
| Legal Process |
$40 per order |
| Legal Transfers |
$30 |
| Registered Non-traded Security Custody (Annual fee) |
$150 per position |
| Registered Non-traded Security Custody (Initial) |
$150 |
| Mandatory/Voluntary Physical Reorg Deposit |
$95 |
| Non-Sufficient Funds |
$29 |
| Physical Custody — Foreign Security |
$100 |
| Pledge Account (paid at the time the account is pledged) |
$100 |
| Unregistered Security Custody (Annual fee) |
$250 per position |
| Research |
$25 per hour |
| Restricted Custody |
$100 per CUSIP/per year |
| Restricted Transaction |
$100 |
| Returned Check or ACH Deposit |
$25 per item |
| Stock Borrowing |
Variable |
| Stop Payment or Reissue10 |
$25 per item |
| Transfer Out |
$125 |
| Treasury Auctions |
$40 |
| Voluntary/Corporate Action |
$40 |
| Wire Transfer Out — Domestic |
$30 |
| Wire Transfer Out — International |
$35 |
4 We reserve the right to assess on a pass-through basis any applicable Depository and Transfer Agent custodial fees against your account related to any ADR or other securities you may hold. You understand and agree that we may assess multiple transaction fees and/or commissions if a single order or transaction is executed on multiple days. Ameriprise Financial and its clients are subject to policy and regulations set forth by various regulatory bodies and exchanges. At times, a nominal transaction fee to cover costs of self-regulation may be charged. These policies, regulations, and fees are subject to change.
5 Ameriprise Financial reserves the right to assess fees and/or interest on any funds advanced to you which result in an open debit in your account. Open Debit Fees are calculated as follows: Debit amount (x) base margin lending rate (x) number of days/360 = Fee amount.
6 To help defray the cost of holding and maintaining securities that may have been deemed worthless and/or without value
7 DWAC fees are typically $50 to $250, but can vary by transfer agent. The actual cost will be determined by the transfer agent, and will be passed onto you. DWAC fees are assessed when exercising employee stock options within an Ameriprise Brokerage Account.
8 DRS fees are generally $15, but can vary by transfer agent. The actual cost will be determined by the individual transfer agent and will be passed on to you. DRS fees are assessed when transferring shares to client brokerage accounts.
9 For a certificate that is rejected by the assigned transfer agent because it was previously paid, replaced, reissued, exchanged, has a “Stop Transfer” applied to it or has otherwise been deemed invalid.
10 For disbursements issued by Ameriprise Financial.
Ameriprise Trading Fees
| Fee type |
Fee amount |
| Order Handling Fee |
$6 |
| Late Trade Settlement |
$15 |
| Transaction Fee |
Variable |
Ameriprise Margin Rates
| Average daily debt balances |
Margin rate |
Effective rate |
| $500,000 – above |
Base − 1.00% |
8.00% |
| $100,000 – $499,999 |
Base − 0.50% |
8.50% |
| $50,000 – $99,999 |
Base |
9.00% |
| $25,000 – $49,999 |
Base + 1.25% |
10.25% |
| $0 – $24,999 |
Base + 2.00% |
11.00% |
Base lending rate: 9.00%. This information is subject to change.
Ameriprise Review Summary
Ameriprise Financial is a good company that proved they can survive any storm. But, like all advisor companies, they charge their customers very high fees on most
accounts. We suggest customers also review companies listed in our
Best Discount Brokerages article. Buying mutual funds, stocks or other investments is very easy for the majority
of people. We see few reasons to overpay advisor company every year for investing services and, as the result, loose a fortune over the years.
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