M1 Blog

M1 introduces new High-Yield Cash Account

M1 Team
M1 Team April 15, 2024

As of today, we’re starting the rollout of the M1 High-Yield Cash Account to existing M1 clients. We are excited to launch this feature and more excited about the value it brings to our customers.  

This account allows clients to earn interest on cash at an epic rate as they navigate their investing journeys. It’s now more attractive to manage more of your portfolio on our platform whether you are fully invested or aim to have accessible cash for your next investment. Manage the funds in your Cash Account how you want, access them when you want.  

Here are a few benefits and features of the M1 High-Yield Cash Account: 

  • One of the best rates in the market with enhanced FDIC insurance  

In the M1 High-Yield Cash Account, your funds can earn yield with the security of FDIC insurance offered through our expanding partner bank network. 

If you start the year with a $10,000 balance, you may be able to earn $450 over a year. And your funds are FDIC-insured up to $3.75 million.2 

  • Use Smart Transfers to automate hitting your goals 

Automation is at the core of the M1 platform, and we want to give our clients the ease, efficiency and dependability of automation to select, direct, and execute on today’s money moves and tomorrow’s goals. 

If you wish to keep your money on standby but want to take the manual process out of it, you can use Smart Transfers to automate money movement. Whether you want to schedule payments towards your M1 Owner’s Rewards Credit Card or regularly invest in your favorite stocks or ETFs, you can schedule your funds to move around as you see fit. 

  • Organize and accomplish your financial goals 

Sometimes having one piggy bank for all your funds can be cumbersome, so we built this to help you stay organized. You can open a maximum of five High-Yield Cash Accounts under your M1 login (including one Joint Account), which can be useful if you want to earn toward different goals simultaneously. 

So if you want to separate out your money for different investing goals, you can open multiple accounts to do that – and earn the same 4.50% APY 1 in each account. 

How a High-Yield Cash Account Works 

How does a Cash Account work with your Invest Account? 

Let’s say you have $1,000 you want to put towards a taxable brokerage or IRA account, but you aren’t sure of what you’d like to invest in. Funds can be held in your Cash Account, and can continue earning 4.50% APY1 in interest until you decide to transfer them into your Invest Account to begin investing. You won’t have to sell off any assets to access the cash and the cash is immediately available to invest. 

So what’s the difference between the M1 High-Yield Cash Account and a high-yield savings account? 

A high-yield savings account and a brokerage Cash Account offer the same core feature: the ability to place liquid funds into an account that provides yield and enhanced FDIC protection on cash deposits. 

But the Cash Account’s additional features including joint accounts and multiple accounts, as well as the seamless integration with your Invest account provides an excellent tool for M1 clients to continue building and protecting their wealth. 

Interest rates updated as of September 2024.

M1 High-Yield Cash Accounts are offered by M1 Finance, LLC, an SEC registered broker-dealer, Member FINRA / SIPC. M1 is not a bank and M1 High-Yield Cash Accounts are not a checking or savings account. Funds held in your brokerage account are not FDIC insured but are protected by SIPC. Participating cash balances will be eligible for FDIC insurance once funds are conveyed to partner banks who accept and maintain deposits and provide FDIC insurance. 

¹ Obtaining stated APY (annual percentage yield) or opening the M1 High-Yield Cash Account does not require a minimum account balance. Stated APY is accrued on account balance and solely determined by M1 Finance, LLC and its partner banks, and will include administrative fees. Stated APY is valid from date of account opening. Account fees will reduce earnings. Rates are subject to change without notice. APY applies only to the cash balance within the M1 High-Yield Cash Account. M1 High-Yield Cash Account and M1 High Yield Savings Accounts are separate offerings and are not linked accounts. M1 is not a bank. 

2 FDIC Insurance is applied to the cash balance in the Cash Account that is swept to the partner banks. Until the cash balance is swept to partner banks, the funds are held in a brokerage account which is protected by SIPC insurance. Once funds are swept to a partner bank, they are no longer held in your brokerage account and are not protected by SIPC insurance. FDIC insurance is not provided until the funds arrive at the partner banks. FDIC insurance is applied at the customer profile level. Customers are responsible for monitoring their total assets at each of the sweep program banks. Full terms of the FDIC insurance can be found here. 

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