We chose the M1 High-Yield Cash Account for its high APY, minimal monthly fee and automations.
Why We Like It:
We like that the M1 High-Yield Cash Account makes automated saving and investing simple with Smart Transfers. These automations let you create rules for moving money between your cash account, brokerage account and The Owner’s Rewards Card by M1.
What We Don’t Like:
The M1 High-Yield Cash Account doesn’t come with many standard checking features, like a debit card, check writing or ATM access. Nor does M1 offer a stand-alone checking account. If you want the convenience of a checking account, you’ll have to look elsewhere.
Who Should Get it:
Those who want to automate their savings and investments with preset rules should consider this account.
You need an M1 brokerage account to open an M1 High-Yield Cash Account. You also need an initial deposit of $100 to earn the stated APY. M1 charges a $3 Platform Fee for accounts that don’t reach $10,000 at least one day during the billing cycle, but the fee is waived if you have an M1 personal loan or Owner’s Rewards card.
M1 is a technology company offering a range of financial products and services. “M1” refers to M1 Holdings Inc., and its wholly-owned, separate affiliates M1 Finance LLC, M1 Spend LLC, and M1 Digital LLC.
A $3 monthly platform fee will apply to clients with less than $10,000 in M1 assets or without an active Personal Loan. The fee will be waived if your opened M1 Invest or Earn accounts settled aggregate balance equals or exceeds $10,000 for at least one day during the 30 days prior to program launch. The monthly platform fee will be waived for all clients with an active M1 Personal Loan, regardless of their M1 Invest or Earn balances.
M1 is not a bank. M1 Personal Loans are furnished by B2 Bank NA, Member FDIC and Equal Opportunity Lender, and serviced by M1 Spend LLC, a wholly-owned operating subsidiary of M1 Holdings, Inc.
¹M1 High-Yield Cash Account(s) is an investment product offered by M1 Finance, LLC, an SEC registered broker-dealer, Member FINRA / SIPC. M1 is not a bank and M1 High-Yield Cash Accounts are not a checking or savings account. The purpose of this account is earn interest on securities not actively invested. An open M1 Investment account is required to participate in the M1 High-Yield Cash Account. All investing involves risk, including the risk of losing the money you invest.
²Stated APY (annual percentage yield) with the M1 High-Yield Cash Account is accrued on account balance. Obtaining stated APY requires a minimum initial deposit of $100. APY is solely determined by M1 Finance LLC and its partner banks, and will include administrative and account fees that may reduce earnings. Rates are subject to change without notice. M1 High-Yield Cash Account is a separate offering from, and not linked to, the M1 High Yield Savings Accounts offered by M1 Spend LLC’s banking partner. M1 is not a bank.
³The cash balance in your Cash Account is only eligible for FDIC Insurance once it is swept to our partner banks and out of your brokerage account. Until the cash balance is swept to partner banks, the funds are held in a brokerage account and protected by SIPC insurance. Once funds are swept to a partner bank, they are no longer held in your brokerage account and are not protected by SIPC insurance. FDIC insurance is not provided until the funds participating in the sweep program leave your brokerage account and into the sweep program. FDIC insurance is applied at the customer profile level. Customers are responsible for monitoring their total assets at each of the sweep program banks. A complete list of participating program banks can be found here.
⁴Credit Card is not available for US Territory Residents. The Owner’s Rewards Card by M1 is Powered by Deserve and issued by Celtic Bank. Review Cardholder Agreement and Rewards Terms for important information about the Owner’s Rewards Card by M1.