M1 High-Yield Savings Accounts are furnished by B2 Bank. B2 Bank utilizes a deposit network that allows customers to hold more than $250,000 and have those funds remain FDIC-insured up to $5 million. FDIC, short for Federal Deposit Insurance Corporation, offers deposit insurance for deposits up to $250,000 to protect customer funds. However, many individuals deposit more than $250,000 and need additional coverage.
To serve these customers, B2 Bank uses a deposit network to deposit balances greater than $250,000 at a network of partner institutions. Because FDIC insurance is based on the depositor, institution, and account type, moving funds to network institutions provides enhanced FDIC coverage up to $5 million. Even with this structure, all funds are available to customers on demand and there is no interruption to funds access.
An updated list of network institutions can be found here. To ensure your deposits are fully FDIC insured, regularly review the list of network institutions as it is subject to change. You may need to reduce your balance at the listed participating institutions to ensure complete insurance coverage.
B2 Bank is a member FDIC institution and does not itself provide more than $250,000 of FDIC insurance per legal category of account ownership as described in FDIC regulations. Additional FDIC insurance coverage is provided through B2’s Insured Deposit Network Program involving other FDIC insured depository institutions. Deposits may be insured up to $5,000,000 through B2’s Insured Deposit Network Program. Full terms of the Program can be found at m1.com/legal/agreements/HYSA_Agreement and a complete list of participating banks in the program can be found at m1.com/legal/agreements/depositnetwork