M1 Finance's high-yield savings account earns a competitive interest rate of 4.65% APY, significantly higher than the national average of 0.05% APY.
This means you can earn a substantial amount of interest on your savings, which can add up over time.
Interest and Earnings
Big banks have been taking a big chunk of your savings for too long, but with M1 Finance, you can earn a higher interest rate. You can earn up to 4.00% APY on your savings, which is a significant difference from what traditional banks like Chase and Bank of America offer.
The interest on your M1 Finance account is calculated daily using the daily balance method, which applies a daily periodic rate to your principal amount each day.
This means you'll earn interest on your savings every single day, not just at the end of the month.
Account Management
With M1 Finance's High-Yield Cash Account, you can have multiple accounts to organize your financial goals. You can open up to 5 accounts (4 individual, 1 joint) to make managing your money easier.
You can also set up joint accounts to earn towards shared goals with a loved one. This feature allows you to work towards common financial objectives together.
One of the best features of M1 Finance's High-Yield Cash Account is the ability to set your own rules with Smart Transfers. This feature automatically moves funds between accounts based on the rules you set, giving you more control over your finances.
Here are the details of the account management features:
How it Works
Your M1 High-Yield Cash Account is a great place to hold your funds, earning 4.50% APY in interest until you decide to invest.
Interest accrual begins on the business day your deposit has been successfully completed and the deposited funds are available for your use, transfer or withdrawal.
Any interest accrued will be credited to your linked external bank account at the end of the month your account was closed in, if you close your Cash Account before receiving an interest credit.
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The M1 High-Yield Cash Account interest rate and annual percentage yield are subject to change, so be sure to check the current rate.
Funds held in your brokerage account are not FDIC insured but are protected by SIPC, until they are swept to a partner bank and FDIC insurance is applied.
You can hold multiple accounts, including joint accounts, in your Cash Account, making it an excellent tool for building and protecting your wealth.
Interest is compounded and credited to your account monthly, so you can watch your funds grow over time.
M1 High-Yield Cash Accounts are offered by M1 Finance, LLC, an SEC registered broker-dealer, Member FINRA / SIPC, and are not a checking or savings account.
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Features
M1's High-Yield Cash Account allows you to earn high yields on your uninvested cash with no minimum balance required.
You can earn up to 4.50% APY, which is significantly higher than the national average of 0.43% APY as of November 2024.
The account is FDIC-insured up to $3.75 million, providing you with added protection for your funds.
You can open up to 5 accounts (4 individual, 1 joint) to organize your financial goals and earn toward shared goals with a loved one.
Here are some key features of the M1 High-Yield Cash Account:
- Earn high yields on your uninvested cash.
- FDIC-insured up to $3.75 million.
- Unlimited transfers and withdrawals: Access your money when you need it.
- Joint accounts: Earn toward shared goals with a loved one.
- Instant transfers: Move money instantly across your M1 accounts.
- Set your own rules: Smart Transfers automatically move funds between accounts based on rules you set.
- No minimum balance: Earn a solid APY, regardless of how much is in your account.
Transfer and Limits
With M1 Finance's High-Yield Cash Account, you can transfer funds without worrying about limits. There is no limit to the number of transfers to and from your Cash Account.
The daily ACH transfer limit is $120,000, so you can move a significant amount of money each day.
Security and Safety
M1 Finance's High Yield Savings accounts come with robust security measures to protect your money. M1 is not a bank, but its Cash Accounts offer up to $3.75 million in FDIC insurance through a deposit network.
You can find a complete list of participating program banks on the M1 website. Customers are responsible for monitoring their total assets at each of the sweep program banks.
Your cash balance in the Cash Account is eligible for FDIC Insurance once it's swept to partner banks and out of your brokerage account.
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Access Denied
Access Denied is a frustrating experience, especially when you're eager to open a new savings account. Some financial institutions, like M1, may pause new account openings due to growth and development.
For instance, M1 recently paused new account openings for their M1 High-Yield Savings Accounts. This decision was made to focus on the existing accounts and ensure they're running smoothly.
It's not uncommon for financial institutions to pause new account openings to address technical issues or high demand. This pause can be temporary, and it's essential to check the institution's website or contact their customer support for updates.
In the case of M1, they've decided to prioritize their existing accounts and high-yield savings accounts. This means they're not accepting new applications for these accounts at the moment.
If you're unable to open a new account, it's a good idea to check the institution's website or social media for updates on when new account openings will resume.
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Money Safety
M1 Cash Accounts offer up to $3.75 million in FDIC insurance through a deposit network.
You can find a list of participating banks on the M1 website. FDIC insurance is applied at the customer profile level, so it's essential to monitor your total assets at each of the sweep program banks.
A complete list of participating program banks can be found here: https://m1.com/legal/agreements/cash-deposit-network/participating-bank-list/.
The cash balance in your Cash Account is 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.
For your interest: Certificate of Deposit Savings Goals
Comparison and Details
M1 Finance High Yield Savings offers a competitive interest rate of up to 4.65% APY, which is significantly higher than the national average.
This rate is available to all M1 Finance users, regardless of their account balance or other factors.
The platform's high-yield savings account is FDIC-insured, providing an additional layer of security for users' deposits.
M1 Finance High Yield Savings has no monthly maintenance fees or minimum balance requirements.
The account also offers a mobile banking app for easy access to your funds and account information.
Frequently Asked Questions
How much will $50,000 make in a high-yield savings account?
Accumulating $50,000 in a high-yield savings account can earn you up to $2,625 in interest within a year, depending on the APY rate
Can you ever lose your money with high-yield savings account?
No, you cannot lose your money with a high-yield savings account, as it is insured up to $250,000 by the FDIC or NCUA. Your deposits are protected, making it a safe place to save and earn interest.
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