Although interest rates have risen considerably in recent years, many branch-based banks still pay miniscule yields on savings accounts, so it can be worth it to look outside the traditional banking industry. The M1 High-Yield Savings Account offers one of the best APYs in the banking industry. In this review, we'll take a closer look at the M1 High-Yield Savings Account and who should consider it.
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Ratings Methodology
Rates asof Mar 06, 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
- Top rate requires M1 Plus subscription
- 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.
High-yield savings account comparison
We recommend comparing high-yield savings account options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of standout accounts.
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| Account | APY | Promotion | Next Steps |
|---|---|---|---|
Open Account for SoFi Checking and Savings Member FDIC. Rating image, 4.75 out of 5 stars. 4.75/5Our 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 4.60% 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 | N/A | Open Account for SoFi Checking and Savings |
Open Account for UFB Secure Savings Account Member FDIC. Rating image, 4.00 out of 5 stars. 4.00/5Our 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. | 5.25% Rate infoTo ensure you keep getting the highest rate at UFB, you'll need to keep an eye on their rates. Occasionally, the bank launches new accounts with higher rates. Existing accounts need to contact the bank to request being moved to one of these new accounts.Min. to earn: $0 | N/A | Open Account for UFB Secure Savings Account |
Open Account for American Express® High Yield Savings Member FDIC. Rating image, 4.00 out of 5 stars. 4.00/5Our 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. | 4.35% Rate info4.35% annual percentage yield as of March 6, 2024Min. to earn: $1 | N/A | Open Account for American Express® High Yield Savings |
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.
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
The top APY requires a paid membership: Here's why we said earlier that this account is best suited to customers who use (or want to use) other M1 Finance products. In order to get the top APY, you'll need a paid M1 Plus subscription. Without a subscription, the savings account's APY is just 1.50%.
An M1 Plus subscription costs $10 per month (first three months are free), and in addition to the higher savings APY, it comes with better cash back rewards on M1's credit card, more investment account options, discounted margin loan interest rates, a 1.50% discount on personal loan interest rates, and more.
To be sure, a M1 Plus subscription could definitely be worthwhile if you use all of its features, but may not be worth the cost if you only want to use the savings account.
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.
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.
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, as the required subscription to receive the best APY has several other perks in M1's ecosystem.
Our Banking Experts
By:Matt Frankel, CFP®
Writer, Analyst
Matt is a Certified Financial Planner® and investment advisor based in Columbia, South Carolina. He writes personal finance and investment advice for The Ascent and its parent company The Motley Fool, with more than 4,500 published articles and a 2017 SABEW Best in Business award. Matt writes a weekly investment column ("Ask a Fool") that is syndicated in USA Today, and his work has been regularly featured on CNBC, Fox Business, MSN Money, and many other major outlets. He’s a graduate of the University of South Carolina and Nova Southeastern University, and holds a graduate certificate in financial planning from Florida State University.
Fact CheckedNathan Alderman
Fact checker
Nathan Alderman has worked with The Motley Fool since 2005, making errors his arch-enemies in a variety of roles including a six-year stint as the dedicated fact-checker for The Motley Fool's premium newsletter services. As The Ascent's Compliance Lead, he makes sure that all the site's information is accurate and up to date, which ensures we always steer readers right and keeps various financial partners happy. A graduate of Northwestern University's Medill School of Journalism, Nathan spends his spare time volunteering for civic causes, writing and podcasting for fun, adoring his wife, and wrangling his two very large young children.
