M1 Finance Unveils High-Yield Cash Account with a 5% APY and Sunsets Its Plus Program

M1 Finance has recently announced several updates to its services that are designed to enhance the financial management capabilities of its users. These include the introduction of a new high-yield cash account, changes to its membership model, and updates to its net worth tracking features.

The newly launched M1 High-Yield Cash Account offers a competitive 5.00% APY, designed to optimize the earning potential on idle cash. This account integrates seamlessly with M1’s existing brokerage services, making it easier for users to manage their investments and savings simultaneously. New users will automatically receive a brokerage account upon opening a cash account, streamlining the investment process.

High APY: The account offers a significant 5.00% annual percentage yield, enabling users to grow their savings effectively.
Increased FDIC Insurance: Users can enjoy up to $3.75 million in FDIC insurance, providing a higher level of security for larger balances.
Account Flexibility: Up to four individual and one joint cash accounts can be opened under a single M1 login, allowing better organization of funds.
For more details on the M1 High-Yield Cash Account, visit our review page.

While the cash account offers high returns and insurance, it is important to note that the funds are initially held in a brokerage account and are only FDIC insured once transferred to partner banks. Users are responsible for monitoring their insurance coverage across these banks.

M1 has decided to discontinue its M1 Plus membership program. Starting May 15, premium features will be accessible to all users without the need for a membership. A $3 monthly platform fee will be introduced for users who do not meet certain criteria related to loan activity or investment balances.

The M1 platform now features an improved net worth graph which provides users with a more detailed view of their financial growth and asset distribution. This update enhances the user interface, making financial tracking more efficient and visually appealing.

Existing M1 Plus members will automatically transition to the new model where premium features become standard for all users, subject to the new monthly platform fee if applicable.

The cash in the M1 High-Yield Cash Account is eligible for FDIC insurance once it is swept to partner banks. It is not covered by FDIC insurance while held within the brokerage account but is protected by SIPC until swept.

While the account itself promotes a high APY, users should be aware of any administrative fees or requirements, such as maintaining a minimum balance, that may impact the net earnings from interest.

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