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High-Yield Cash Account FAQ
Updated this week

Why is M1 now offering High-Yield Cash Accounts in addition to High-Yield Savings Accounts?

High-Yield Savings Accounts are one product offered by M1 with further availability coming soon. In the meantime, we are rolling out High-Yield Cash Accounts to some clients for beta testing. Our Cash Accounts broaden access to 5.00% APY* on cash with FDIC** coverage up to $3.75 million.

Is M1 planning to close Savings Accounts?

No, M1 High-Yield Savings Accounts aren’t going anywhere.

We’ll continue to offer Savings Accounts and plan to provide additional Savings Accounts in the future. Until then, we’re providing our clients another way to earn 5.00% APY* on their uninvested cash with an M1 High-Yield Cash Account.

Why can’t I open an M1 Savings Account now?

While we’re excited by the growth of our new M1 High-Yield Savings Accounts, we’ve decided to pause new account openings for the moment.

What is B2 and how does it relate to M1?

B2 Bank National Association (B2), Member FDIC, formerly known as The First National Bank of Buhl, is a nationally chartered bank purchased by our CEO in the fall of 2021. For the M1 Cash Sweep Program, M1 partners with B2 in order to transfer your Program Deposits from your Cash Account to your Deposit Account(s) at FDIC-insured Participating Banks.

Is my money safe in an M1 Cash Account?

M1 Cash Accounts offer up to $3.75 million in FDIC** insurance through a deposit network. See all participating banks here.

Will my M1 investment account earn interest?

The cash in M1 Individual Accounts, Joint Accounts, Traditional IRAs, Roth IRAs, Trusts, and Custodial Accounts do not accrue interest.

How is interest calculated for the Cash Account?

We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal amount in your account each day.

How many Cash Accounts can I open?

You can open 4 Individual Cash Accounts and 1 Joint Cash Account.

What if I close my Cash Account before receiving an interest credit?

If you close your Cash Account before interest is credited, any interest accrued will be credited to your linked external bank account at the end of the month your account was closed in.

Interest accrual begins on the business day your deposit has been successfully completed and the deposited funds are available for your use, transfer or withdrawal. Interest is compounded and credited to your account monthly. The M1 High-Yield Cash Account interest rate and annual percentage yield are subject to change.

What are the transfer limits for the Cash Account?

There is no limit to the number of transfers to and from your Cash Account. The daily ACH transfer limit is $120,000.

If you need to transfer more than your daily ACH limit, you can wire any deposit amount into your M1 High-Yield Cash Account. Please see the wire transfers instructions below.

Wire transfers into the Cash Account

Here are the details you’ll need to complete a wire transfer to your Cash Account:

Receiving bank: United Banker’s Bank

Bank address:

1650 W 82nd Street, Suite 1500

Bloomington, MN 55431

ABA: 091001322

Beneficiary name: B2 Bank

Address: PO Box 706, Buhl, MN 55713

Beneficiary Account: 2501864

Memo: “Customer Full Name” - “Cash Account Number” - “Address”

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.

M1 High-Yield Cash Account(s) is an investment product 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. The purpose of this account is to invest in securities, and an open M1 Investment account is required to participate in the M1 High-Yield Cash Account. All investing involves risk, including the risk of losing the money you invest.

*Stated APY (annual percentage yield) with the M1 High-Yield Cash Account is available from date of account opening and is accrued on account balance. Obtaining stated APY requires a minimum initial deposit of $100. APY is solely determined by M1 Finance LLC and its partner banks, and will include administrative and account fees that may reduce earnings. Rates are subject to change without notice. M1 High-Yield Cash Account is a separate offering from, and not linked to, the M1 High Yield Savings Accounts offered by M1 Spend LLC’s banking partner. M1 is not a bank.

**The cash balance in your Cash Account is eligible for FDIC Insurance once it is swept to our partner banks and out of your brokerage account. Until the cash balance is swept to partner banks, the funds are held in a brokerage account and 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 participating in the sweep program leave your brokerage account and into the sweep program. FDIC insurance is applied at the customer profile level. Customers are responsible for monitoring their total assets at each of the sweep program banks. A complete list of participating program banks can be found here.


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