Smart Transfers let you set rules that automatically move cash between your M1 accounts when certain conditions are met. This helps you manage your balances, pay down margin loans, fund investments, and make the most of your high-yield accounts—automatically and hands-free.
How Smart Transfers work
Smart Transfers use “threshold” rules to trigger money movement between your accounts:
Overbalance: If your account’s cash exceeds a set amount (threshold), the extra cash is transferred to another M1 account you choose.
Underbalance: If your account’s cash falls below a set amount, money is sent from another M1 account to bring the balance up.
Key points:
Thresholds are based on available cash only (not your total account value, which includes investments).
Smart Transfers move money between your M1 accounts; they will not initiate withdrawals or deposits from/to outside banks.
Transfers are processed automatically, typically within 1 business day after the trigger is met.
Types of Smart Transfers
Earn Overbalance (High-Yield Accounts): Automatically transfer extra cash out of your high-yield account if the balance goes above your set threshold.
Earn Underbalance: If your high-yield account falls below your chosen balance, it’s automatically refilled from another M1 account.
Invest Cash Overbalance (Invest Account): Move excess cash from your Invest account to another M1 account (like your high-yield cash account or IRA) when the cash goes above your selected threshold.
You may also use Smart Transfers to help pay down an M1 Margin Loan from eligible source accounts. (Margin borrowing is available only to margin accounts with at least $2,000 invested and is not available for retirement or custodial accounts.)
IRA and Contribution Limits
Smart Transfers cannot start from IRAs (Traditional or Roth), but you can direct cash into an IRA from a taxable account using an overbalance rule.
When transferring into an IRA, Smart Transfers will not exceed your annual IRS contribution limit.
For example, if you set a weekly transfer but hit your annual maximum, transfers to the IRA will pause automatically.
You can also set a lower custom limit if you want to contribute less than the IRS max.
Note: M1 does not track IRA contributions made at other institutions—be sure to consider your total contributions across all IRAs.
Step-by-step: how to create a Smart Transfer
From the Home tab, click Move Money.
Select Smart Transfer.
Choose your preferred Smart Transfer type:
Select the source account (the account to monitor).
Set your cash balance threshold—the amount at which the rule will activate.
Choose the destination account(s) for the transfer.
Set any additional limits (per week, per month, or custom endpoint).
Click Create Smart Transfer.
Review the rule details and click Confirm to activate.
Example: Want to keep no more than $2,500 cash in your Invest account?
Set an Overbalance Smart Transfer at $2,500, with your M1 High-Yield Savings as the destination. Any excess over $2,500 will move automatically.
How to view, edit, pause, or delete Smart Transfers
To view:
On the Home screen, scroll to the Recurring section above transfers.
Select the Smart Transfer you want to view.
To edit:
Select Edit on the Smart Transfer rule.
Change fields as desired and click Update.
Click Confirm.
To pause:
Toggle the “Enable Smart Transfer” switch off; your rule will stop running until you reactivate it.
To delete:
Select Edit, then Delete.
Confirm the deletion to remove the rule.
Transfer timing, frequency, and limits
Processing speed: Smart Transfers are usually executed within 1 business day of the threshold being met.
Frequency: Transfers run every time your account’s cash crosses the specified threshold.
Example: If cash drops below an underbalance threshold several times per week, Smart Transfers will run as often as needed.
Minimum/maximum amounts: No strict minimum to trigger a transfer, but destination accounts (such as IRAs) remain subject to contribution rules, and accounts must have available cash.
You can also set custom maximums to limit how much moves during a given period.
No securities are sold: Only available cash is moved. Smart Transfers do not liquidate investments to create cash.
Common Smart Transfer examples
Automate investing: Move excess cash from savings to your Invest account.
Refill reserves: Top off your high-yield account when it drops below your comfort level.
Repay margin loans: Direct surplus cash to pay down margin loan balances before investing or saving more.
Troubleshooting Smart Transfer issues
My Smart Transfer didn’t run:
Cash did not cross (exceed/fall below) the set threshold.
Insufficient available cash in the source account.
IRAs cannot be set as a source account for transfers.
For IRAs, the annual contribution limit has already been reached.
The Smart Transfer rule is paused or disabled.
Processing seems delayed:
Transfers may process at the end of the business day or on the next business day after a trigger.
Bank holidays or system maintenance can occasionally slow processing.
Transfers not moving as expected:
Double-check your thresholds and destination settings.
Ensure you’re not attempting to move cash from an IRA or another restricted account type.
Confirm no additional limitations have been set (e.g., per-transfer or per-week caps).
*Brokerage accounts on the M1 platform are either fully disclosed to APEX Clearing or cleared through M1 Finance LLC. Please look at your account statement to determine how your account is cleared.
All investing involves risk, including the risk of losing the money you invest. Past performance does not guarantee future performance. Using margin can add to these risks. Users utilizing APEX cleared margin accounts should review the APEX margin account risk disclosure before borrowing. Users utilizing M1 cleared margin accounts should review the M1 margin account risk disclosure before borrowing. M1 Margin Loans are available on margin accounts with at least $2,000 invested per account. Not available for Retirement or Custodial accounts. Margin rates may vary.
Brokerage products and services are offered by M1 Finance LLC, Member FINRA / SIPC, and a wholly owned subsidiary of M1 Holdings, Inc.
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.
For a complete list of other depository institutions where funds may be placed, please visit https://www.cambr.com/bank-list. Balances moved to network banks are eligible for FDIC insurance once the funds arrive at a network bank. To learn more about pass-through deposit insurance applicable to your account, please see the Account Documentation. Additional information on FDIC insurance can be found at https://www.fdic.gov/resources/deposit-insurance/.
This content was generated using artificial intelligence and is intended for informational and educational purposes only. While reasonable efforts are made to ensure accuracy, AI-generated outputs may omit key context; and should not be construed as financial, investment, legal, or tax advice. Users should independently verify all information and consult a qualified professional before making any financial decisions.
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