The M1 High-Yield Savings Account might be for you if: You have more than $10,000 in savings and want to maximize your earnings in a high-yield savings account.
Although interest rates have risen considerably in recent years, many branch-based banks still pay minuscule yields on savings accounts, so it can be worth it to look outside the traditional banking industry.
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Robin Hartill, CFP®, is The Ascent’s Head of Product Ratings and has worked for The Motley Fool since 2020. Her work has appeared in various national publications, including Yahoo! Finance, NerdWallet, Investopedia, CNN Underscored, MSNBC, USA Today, and CNET Money. She previously wrote The Penny Hoarder’s syndicated “Dear Penny” personal finance advice column.
Ratings Methodology
Rates asof Sep 14, 2024
M1 High-Yield Savings Account
Member FDIC.
Rating image, 3.25 out of 5 stars.
3.25/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor
Rating image, 3.25 out of 5 stars.
3.25/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor
APY
up to 5.00%Rate info5.00% (1.50% without M1 Plus subscription)
Min. To Earn APY
$0
- Highly competitive APY
- $5 million FDIC insurance limit
- No minimum balance requirements
- Limited deposit and withdrawal options
The M1 High-Yield Savings Account has an excellent APY, but is best suited for customers who take advantage of the company's other product offerings as well.
M1 is not a bank. M1 Spend is a wholly-owned operating subsidiary of M1 Holdings Inc. M1 High-Yield Savings Accounts are furnished by B2 Bank, NA, Member FDIC.
Compare savings rates
Make sure you're getting the best account for you by comparing savings rates and promotions. Here are some of our favorite high-yield savings accounts to consider.
| Account | APY | Promotion | Next Steps |
|---|---|---|---|
Open Account for SoFi Checking and Savings OnSoFi'sSecure Website. Member FDIC. Rating image, 4.50 out of 5 stars. 4.50/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | up to 4.50%² Rate infoYou can earn the maximum APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.Min. to earn: $0 | New customers can earn up to a $300 bonus with qualifying direct deposits!¹ | Open Account for SoFi Checking and Savings OnSoFi'sSecure Website. |
Open Account for CIT Platinum Savings OnCIT'sSecure Website. Member FDIC. Rating image, 4.50 out of 5 stars. 4.50/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | 4.85% APY for balances of $5,000 or more Rate info4.85% APY for balances of $5,000 or more; otherwise, 0.25% APYMin. to earn: $100 to open account, $5,000 for max APY | N/A | Open Account for CIT Platinum Savings OnCIT'sSecure Website. |
Open Account for Capital One 360 Performance Savings OnCapital One'sSecure Website. Member FDIC. Rating image, 4.50 out of 5 stars. 4.50/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | 4.25% Rate infoSee Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY)is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening.Min. to earn: $0 | N/A | Open Account for Capital One 360 Performance Savings OnCapital One'sSecure Website. |
Full M1 High-Yield Savings Account review
Like most financial products, the M1 High-Yield Savings Account isn't a great fit for everyone. Here's a rundown of the perks and potential drawbacks you should know about before deciding if it's right for you.
M1 High-Yield Savings Account interest rate
| Account | APY | Minimum Deposit |
|---|---|---|
| M1 High-Yield Savings Account | up to 5.00% | $100 |
Data source: M1.
M1 High-Yield Savings Account has a stellar APY -- but it comes with a catch. M1 isn't currently taking applications for new accounts. While the company claims it will start taking new applications soon, it hasn't specified an exact date.
Fees
Like online banks, M1 doesn't charge monthly service fees for its high-yield savings account. However, it does have ancillary fees you should know about.
| Monthly service fee | $0 |
|---|---|
| Wire transfer fee | $25 (outgoing) |
| Overdraft fees | $30, not to exceed $90 daily |
| Paper statements | $5 |
Data source: M1.
One thing to note is that M1 charges a $3 monthly platform fee to clients who have less than $10,000 in total assets or without an active personal loan. Assets held with M1 Finance can include savings and investments. If you plan to hold less than $10,000 in total assets with M1, you might be better off with a free high-yield savings account.
Minimum balance
The M1 High-Yield Savings Account has no minimum balance requirements, neither to open the account nor to snag its APY. You can open this account with as little as $0.01.
Withdrawal limit
Account holders are limited to $50,000 in withdrawals and transfers per day. This amount is pretty standard among online banks (SoFi, for instance, also sets the same limit), though some brick-and-mortar banks impose limits that are far below $50,000.
Mobile app
The M1 banking app provides all the features you need to bank through your handhelds. You can schedule transfers, deposit checks, get real time alerts on suspicious activity, view accounts, and set up bill payments. The app has a 4.7 out of 5 stars on the Apple App Store and 4.3 out of 5 stars on Google Play.
How to access your money
M1 Finance doesn't have physical branches, nor does it have an ATM network available to customers. In fact, it's important to mention that M1 Finance isn't a bank at all -- the high-yield savings account is offered through a partnership with B2 Bank NA, which is also owned by M1's founder and CEO.
As a result, the ways customers can deposit and withdraw funds to their accounts are rather limited.
Deposit options
The only way to deposit money into the M1 High-Yield Savings Account is by electronic funds transfer from a linked bank account. There is no way to deposit cash or checks into the account.
Withdrawal options
The only way to withdraw money from the M1 High-Yield Savings Account is by electronic funds transfer to a linked bank account. M1 is no longer offering its checking account product to new customers, so for practical purposes, you'll need to maintain a checking account at another institution.
Online user reviews
Reviews of the M1 High-Yield Savings Account are scant. On Trustpilot, most users complained about not being able to open an account right now. Some users were upset when M1 opened an investment account after they applied for a high-yield savings account. The issuer in general has a 2 out of 5 stars on Trustpilot and no review rating on BBB.
Top perks
Competitive APY: The M1 High-Yield Savings Account pays an APY of up to 5.00%, which is on the high end of the best high-yield savings accounts we follow.
Up to $5 million is FDIC insured: With the recent high-profile bank failures in the United States, many savers are worried about the FDIC's $250,000 insurance cap. Like several tech-focused online financial companies, M1 is offering significantly more -- as much as $5 million in FDIC-insured deposits.
Essentially, the bank that partners with M1 to provide the account uses a network of partner banks to spread high-balance accounts around. This effectively takes advantage of FDIC insurance from several banks to ensure depositors' money is completely safe.
No minimum balances: Unlike some other high-yield savings accounts, the M1 High-Yield Savings Account has no minimum opening deposit, or any minimum ongoing balance requirement whatsoever.
M1 Finance ecosystem: M1 Finance is primarily an investment account provider, and has an excellent brokerage platform that offers individual and joint brokerage accounts, retirement accounts, and more. It also offers a credit card product, lines of credit, personal loans, and other financial tools. The M1 ecosystem is designed to let people invest, borrow, and save in one place, and is nicely differentiated from several other high-yield savings accounts.
What could be improved
No checks or debit cards: While it isn't common to be able to write checks on a savings account, it isn't unheard of to be able to access savings account money through an ATM with a debit card. The only way to withdraw money from the M1 High-Yield Savings Account is by transferring funds to an external, linked bank account.
No cash or check deposits: There is no way to deposit cash or checks into the M1 High-Yield Savings Account. There are no branches or ATMs available for use, and there is no mobile check deposit feature at this time. The only way to deposit money into the account is through electronic funds transfer from a linked external bank account.
Is M1 High-Yield Savings Account FDIC insured?
Yes, M1 has FDIC insurance through its parent bank, B2 Bank. M1 can offer up to $5 million in FDIC insurance, which is 20 times the normal amount offered to depositors ($250,000).
The M1 High-Yield Savings Account is right for you if:
The M1 High-Yield Savings Account could be a great fit for you if you have a significant amount of money in savings and want to maximize the yield you receive. It could be an ideal fit for people who use M1 Finance for other aspects of their financial lives, such as brokerage, credit cards, and personal loans.
Keep reading about M1 Finance:
- M1 Finance Review
- M1 Finance Promotions of 2024
Review sources
Our savings account methodology
At The Motley Fool Ascent, we rate savings accounts on a five-star scale (1 = poor, 5 = best). We evaluate all savings accounts across four main criteria: annual percentage yield (APY), brand and reputation, fees and minimum requirements, and perks that really make a difference -- think ATM access, linked checking accounts, or even branch access.
Our scores are weighted as:
- APY: 50%
- Brand and reputation: 20%
- Fees and minimums: 15%
- Other perks: 15%
Learn more about how The Motley Fool Ascent rates bank accounts.
FAQs
M1 Finance has not specified a date when it will start accepting applicants again. According to its website, availability is forthcoming, though there's no telling how long it could take for the bank to reopen applications.
M1 Finance is not a bank. Its savings accounts are supported by B2 Bank, which is an FDIC member.
Previously, you needed to be an M1 Plus member to earn this account's highest APY ($10 monthly). However, since M1 ended this membership service, you can earn the highest APY without it. That said, M1 does charge a $3 monthly platform fee for those who have less than $10,000 in total M1 assets, including savings and investments, or who don't have an M1 personal loan.
