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

Last updated 04/30/2024 by

SuperMoney Team

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M1 Finance has introduced new features and updates to its platform, including the M1 High-Yield Cash Account with a 5.00% APY and enhanced FDIC insurance, alongside significant changes to its membership structure and platform fees. These updates aim to provide a more integrated and flexible financial management experience for its users.
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.

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New M1 High-Yield Cash Account

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.

Features and Benefits

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.

Important Considerations

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.

Program Changes and Platform Updates

Sunset of M1 Plus Membership

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.

Updated Net Worth Graph

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.

Frequently asked questions

What does the discontinuation of M1 Plus mean for existing users?

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.

How does the FDIC insurance work with the new cash account?

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.

Are there any fees associated with the cash account?

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.

Key takeaways

  • M1’s new High-Yield Cash Account offers a competitive 5.00% APY with extensive FDIC insurance options.
  • The discontinuation of the M1 Plus membership broadens access to premium features, impacting the platform’s fee structure.
  • Updated features like the net worth graph enhance user experience by providing more detailed financial insights.
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