Skip to content
M1 Logo
  • InvestExpand
    • Flexible, customizable,
      and automated.
      Intelligently invest your way, commission-free.

      Brokerage accounts

      Individual

      Joint

      Custodial

      Retirement Accounts

      Traditional IRA

      Roth IRA

      SEP IRA

      Other accounts

      Crypto

      Trust

      More about investing at M1

      Transfer investments to M1

      How M1 Pies work

      Automate your investing

      Borrow against your account

      Account safeguarding

  • BorrowExpand
    • Borrow against your qualifying investments or from us with low rates for qualified borrowers.

      Portfolio lines of credit

      Margin Loans

      Loans

      Personal Loans

      More about Margin Loans at M1

      What’s a margin loan?

      What can you use one for?

      M1 Plus lowers your interest rate

      Maintenance calls

      Margin loans differ from personal loans

      More about Personal Loans at M1

      Personal loan eligibility

      Does applying for a personal loan affect my credit?

      When will I receive my funds?

      M1 Plus lowers your APR

  • SpendExpand
    • Maximize everyday finances with high-yield bank accounts and tiered credit card rewards.

      Checking

      M1 Spend

      Credit

      Owner’s Rewards Card

      More about everyday finances with M1

      Automate your transfers

      Higher yields with M1 Plus

      What are Owner’s Rewards?

      Account safeguarding

      More about credit at M1

      What are Owner’s Rewards?

      Higher cash back with M1 Plus

  • SaveExpand
    • An FDIC-insured savings account with industry leading 4.50% APY*.

      Savings

      High-Yield Savings Account

      More about High-Yield Savings Accounts with M1

      Higher yields with M1 Plus

      Account safeguarding

      Savings FAQs

  • PlusExpand
    • Membership
  • ResourcesExpand
    • Help Center
    • Contact Us
    • Blog
    • Referral Program
  • AboutExpand
    • Our Mission
    • Our Team
    • M1 Milestones
    • Careers
    • Press
  • Log in
Get started

M1 Logo
Blog Home Investing Banking Planning Wellness Insights M1
Search
M1 Blog > Banking

Big banks aren’t in your best interest

Jack Sullivan January 31, 2023
Twitter logo  Reddit logo Linkedin logo Copy link icon

As the Federal Reserve continues its steepest rate increases in decades, many banks have begun offering higher and higher rates on their savings accounts. And in a volatile market, high-yield savings accounts are a silver lining for investors looking to grow their wealth with limited risk. 

However, big banks aren’t necessarily the best places for high-yield savings accounts. They typically offer the lowest yields on the market, charge high fees, and provide outdated technology. Clients end up staying due to loyalty and the perceived inconvenience of switching. 

The five largest banks offer some of the lowest APYs

A Wall Street Journal analysis concluded American savers could have earned $42 billion more in interest in the third quarter of 2022 if they moved their money out of the five largest U.S. banks and deposited it into the five highest-yield savings accounts.  

You may not be getting the best rate at your current bank. The average interest rate for savings accounts at all banks is only 0.33%, according to the FDIC. At that rate, with $35,000 in savings, you’re barely seeing over $100 for the year. 

For M1 Plus users, you can open a checking account with a yield of 3.30%1 and start earning almost ten times the national average. Later this year, M1 will launch a high-yield savings account with a 4.50% APY1. Join the list now. 

Big banking comes with high fees

Big banks have long been known for charging high fees on savings accounts, which can add up quickly and chip away at your savings. Similar to having a financial advisor who charges a yearly fee, savings account fees can put your finances at a disadvantage in the long-term. 

These fees can take many forms, such as monthly maintenance fees, transaction fees, ATM withdrawal fees, and fees for moving your money. 

One of the main reasons that big banks charge high fees on savings accounts is because they have a lot of overhead costs. These banks have to maintain physical branches, pay for advertising and marketing, and cover other expenses. To make up for these costs, they often charge higher fees than smaller banks or financial platforms. 

Big banks also charge high fees on savings accounts because they can. They have large and loyal client bases, and many clients may not be aware of the fees or the options they have for banking.

Banking has changed over the past decade, but your bank probably hasn’t

Smaller finance platforms now use technology to improve the client experience, but many institutional banks have been slow to adapt. They use legacy systems that are not designed to integrate with evolving technology and could create problems for the user. 

Automation and intelligent software have made banking easier—and more profitable—for investors than ever. 

On M1, we’ve created the following banking technologies for our checking account. 

Recurring Transfers and Direct Deposits

The Recurring Transfers tab allows you to automate your transfers on a weekly, bi-weekly, or monthly schedule. Use the “Direct Deposit” tab to find your M1 Checking Account and routing number. You can set up direct deposit to get your paycheck automatically deposited into your M1 Checking Account up to two days earlier2 than your payroll date with M1 Plus.

Smart Transfers

M1 Plus clients have access to Smart Transfers where they can use threshold-based rules to automatically transfer money between their M1 accounts. For example, a user could set a rule to transfer excess money in their checking account to an investment account whenever the balance in their checking account exceeds a certain minimum, or to refill their checking account from another account if the balance falls below a certain minimum. Smart Transfers can be set to work between various M1 accounts, such as a checking account, an IRA, and a taxable portfolio, and can be used to maintain minimum or maximum balances, invest excess money, or transfer money between accounts.

Send Check

This M1 Plus service allows clients to send physical checks from their M1 Spend accounts. Whether it’s sending rent payments to your property manager, paying utility bills, or sending a birthday gift, Send Check lets you make the payments you need (even when you can’t do it digitally).

So why do clients stay?

If big banking is so bad, why do clients stay? For many it’s loyalty and convenience. A survey by Bankrate found that Americans on average have used the same checking and savings account for nearly 17 years. Even though loyalty is seldom rewarded, the perceived inconvenience of switching keeps them there. Chances are you have your money in more than one place: brokerage accounts, retirement accounts, loans, checking and savings accounts. M1 offers many different products that you already use, so your finances could be a one-stop-shop. While switching may sound inconvenient, the benefits could outweigh the little time the process takes on M1. 

In fact, a new survey of over 1,000 US Millennials found that 71% would consider changing their primary bank or other financial institution for a higher Annual Percentage Yield (APY) on their cash savings, rising to 79% for those planning to retire early. 

Ensure you’re getting the best deal

The payoff for moving your cash only continues to grow. Right now, with M1 Plus, you can earn 3.30% APY* with M1’s high-yield checking account. And, later this year, M1 is launching a high-yield savings account offering a 4.50% APY* for M1 Plus members. Join the list now.

1Obtaining stated APY (annual percentage yield) or opening an account does not require a minimum account balance. Stated APY is valid from date of account opening. Account fees may reduce earnings. Variable APY rate subject to paid M1 Plus subscription. Stated APY (annual percentage yield) for M1 Savings accounts is subject to change prior to product launch due to changing federal funds rate. 

2Early Direct Deposit is dependent on your payroll provider. 

M1 Spend is a wholly-owned operating subsidiary of M1 Holdings Inc. M1 is not a bank. M1 Checking Accounts furnished by Lincoln Savings Bank, Member FDIC. 

  • Categories
  • Banking
  • Tags
  • Interest rates
  • APY
  • M1 High-Yield Savings Account

Please provide a valid email address.

More from Banking

  • The Banking Crisis: What’s going on and what you need to know

    Mar 15, 2023

    The banking crisis over the last few days has captured headlines. Here’s what you need to know.

  • Why you should use a high-yield savings account over a regular savings account: A comprehensive comparison

    Mar 8, 2023

    Learn about the advantages, disadvantages, and personal finance decisions that go into choosing the right account for you.

  • How to use a high yield savings account to potentially build long-term wealth 

    Mar 1, 2023

    The M1 high yield savings account can be a great part of your financial strategy for both short-term and long-term planning.

Check the background of M1 Finance LLC on FINRA's BrokerCheck


M1 logo
About
Careers Newsroom
Legal
Terms of Use Privacy Policy Agreements Disclosures Accessibility
Contact
Help Center Service Status Affiliates Press Inquiries
Twitter logo
LinkedIn logo
Instagram logo
Facebook logo
Download on the App Store
Get it on Google Play

By using this website, you accept our Terms of Use and Privacy Policy and acknowledge receipt of all disclosures in our Disclosure Library. All agreements are available in our Agreement Library. M1 relies on information from various sources believed to be reliable, including clients and third parties, but cannot guarantee the accuracy and completeness of that information.

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. 

M1 Plus is a paid annual membership that confers benefits for products and services offered by M1 Finance LLC, M1 Spend LLC and M1 Digital LLC, each a separate, affiliated, and wholly-owned operating subsidiary of M1 Holdings Inc. "M1" refers to M1 Holdings Inc., and its affiliates.

All investing involves risk, including the risk of losing the money you invest. Past performance does not guarantee future performance. Using M1 Borrow’s margin account can add to these risks, and you should review our margin account risk disclosure before borrowing. Nothing in this informational site is an offer, solicitation of an offer, or advice to buy or sell any security and you are encouraged to consult your personal investment, legal, or tax advisors.

Brokerage products and services are not FDIC insured, no bank guarantee, and may lose value. Brokerage products and services are offered by M1 Finance LLC, an SEC registered broker-dealer, Member FINRA / SIPC.

Commission-free trading of stocks and ETFs refers to $0 commissions charged by M1 Finance LLC for self-directed brokerage accounts. Other fees may apply such as regulatory, M1 Plus membership, account closures and ADR fees. For complete list of fees, visit M1 Fee Schedule.


M1 is not a bank.  Personal Loans provided by B2 Bank National Association, Member FDIC, Equal Opportunity Lender. 


Credit Card not available for US Territory Residents. Review Cardholder Agreement and Rewards Terms for important information about the Owner’s Rewards Card by M1. The Owner’s Rewards Card by M1 is Powered by Deserve and issued by Celtic Bank, a Utah-Chartered Industrial Bank, Member FDIC.


M1 Digital LLC is a wholly separate affiliate of M1 Finance LLC, and neither are involved with the execution or custody of cryptocurrencies. Cryptocurrencies are not FDIC or SIPC insured. For relevant crypto disclosures and risks, visit Crypto Disclosures.


All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.

200 N LaSalle St., Ste. 800 Chicago, IL 60601

© Copyright 2023 M1 Holdings Inc.

  • Home
  • Invest
    • Flexible, customizable,
      and automated.
      Intelligently invest your way, commission-free.

      Brokerage accounts

      Individual

      Joint

      Custodial

      Retirement Accounts

      Traditional IRA

      Roth IRA

      SEP IRA

      Other accounts

      Crypto

      Trust

      More about investing at M1

      Transfer investments to M1

      How M1 Pies work

      Automate your investing

      Borrow against your account

      Account safeguarding

  • Borrow
    • Borrow against your qualifying investments or from us with low rates for qualified borrowers.

      Portfolio lines of credit

      Margin Loans

      Loans

      Personal Loans

      More about Margin Loans at M1

      What’s a margin loan?

      What can you use one for?

      M1 Plus lowers your interest rate

      Maintenance calls

      Margin loans differ from personal loans

      More about Personal Loans at M1

      Personal loan eligibility

      Does applying for a personal loan affect my credit?

      When will I receive my funds?

      M1 Plus lowers your APR

  • Spend
    • Maximize everyday finances with high-yield bank accounts and tiered credit card rewards.

      Checking

      M1 Spend

      Credit

      Owner’s Rewards Card

      More about everyday finances with M1

      Automate your transfers

      Higher yields with M1 Plus

      What are Owner’s Rewards?

      Account safeguarding

      More about credit at M1

      What are Owner’s Rewards?

      Higher cash back with M1 Plus

  • Save
    • An FDIC-insured savings account with industry leading 4.50% APY*.

      Savings

      High-Yield Savings Account

      More about High-Yield Savings Accounts with M1

      Higher yields with M1 Plus

      Account safeguarding

      Savings FAQs

  • Plus
    • Membership
  • Resources
    • Help Center
    • Contact Us
    • Blog
    • Referral Program
  • About
    • Our Mission
    • Our Team
    • M1 Milestones
    • Careers
    • Press
Get Started
Login

Search