Update 5/24/23: M1 is discontinuing their checking account in favor of a new savings account being launched which currently boasts 5% APY. Do note, this yield is only for M1 Plus members which costs either $10/month or $95/year. The free trial of M1 is now only three months free. Without M1 Plus the interest rate is currently 1.50% APY. See other options in our post on Best High Yield Savings Accounts.
Original Post:
M1 Finance offers an upgraded ‘M1 Plus’ membership which offers 1% APY on balances in the checking account. It also offers 1% on swiped/online debit card purchases; that might be useful as well on certain types of transactions (?).
While M1 Plus membership costs $125 per year, they do offer your first year free. Might not be worth the $125 fee, but some people will find it worthwhile to sign up to get the 1% APY rate. Far as I can tell, there’s no limit on how much earns that rate (just remember the $250,000 FDIC limit). That compares to other high-yield accounts which mostly run more in the .5%-.75% range at the time of this writing.
M1 Spend checking accounts are furnished by Lincoln Savings Bank, Member FDIC. M1 Visa Debit Card is issued by Lincoln Savings Bank, Member FDIC.
Hat tip to readers Apple and billybob
Updates to M1 Plus:
M1 Plus goes away May 15!
Now everyone will get our best rates and features! You’ll get them for free if you have $10,000 or more in assets, or a Personal Loan. Otherwise, you’ll be billed a $3 monthly platform fee.
New email:
As previously announced, we will be closing M1 Checking Accounts as part of our mission to build a better M1. Interest on these accounts has dropped to 0% APY. M1 Spend Visa® debit cards will expire on our ultimate account closure date of October 31, 2023.
The following account features will end on October 15, 2023:
Cash back on M1 Spend Visa® debit card purchases
1 ATM reimbursement/month
International fee reimbursements
Close your account on a high note
Be sure to update any automatic deposits or payments you’ve set up, move any remaining funds to a new location, and prepare to use a new payment method. For full instructions, visit our Account Closure Checklist.
July and August 1% cb still received. My guess is Sep will work as well. Not sure if/how Oct 1-15 will be paid out. Check maybe?
wonder what would happen to the recurring transfer bonus if it was already setup for Checking. With 4 months still to go to complete the 6 months required, that would surely put it past the Oct 31st date. Not sure if converting the checking to savings would retain the same account numbers which would be the only way to continue the recurring transfer if at all.
I would contact support and save the transcript in case things go south
Received confirmation that 1% cashback on debit will STOP July 1st!!!!!!
Confirmation from whom?
Thanks, that is really annoying as the email doesn’t mention that change at all. Glancing briefly through terms and conditions I don’t see the cash back mentioned, so I suppose there is no way to fight it if it is stopped July 1st despite no mention in the email 🙁
Confirmed via my own email to support:
“Starting July 1st, 2023, you will no longer earn interest and 1% cashback on your M1 Spend Checking Account. All existing M1 Checking accounts will be closed on October 31st, 2023.”
Oh well, it was good while it lasted.
On the other hand I received no emails at all. So not sure if M1 is doing it phase by phase.
Are there different versions of what’s changing being sent ?
No my email did not say anything about cashback but when I reached out to support they mentioned it.
I believe both p1 and p2 got same email on our end, although only p1 still has m1 plus.
I got paid 1% in Aug for July, so it definitely still works.
Just received an email that M1 plans to close all checking accounts by October 31, 2023. APY will be 0% effective 7/1/23
Sucks they’re not letting you open checking accounts anymore. I just did all sorts of research on the best online checking/savings combo to switch to and had landed on M1. Only to find out I can only open a savings account!
So they’re completely shuttering their debit product then?
Seems per posted link you just can’t open a new one. My current one still works
“ What’s happening to my M1 Spend Checking Account?
Starting May 19th, the only change to M1 Checking is that you’ll no longer be able to open additional Checking Accounts. ”
Did everyone receive May cashback for debit spend?
I just received May statement after 7 days in June already passed and now don’t see any cashback ?
TIA
Got mine today around 11am PST.
Looks like there is a bonus of $30-$500 depending on initial deposit
Link?
1.Open a new M1 Spend checking account between January 28 – March 31.
2.Deposit $2,500 within the first 14 days of account opening.
3.Maintain your balance until May 13 for a $100 bonus deposit.
would be cool if m1 plus was free with a direct deposit like other places do