Smart Transfers

Smart transfers allow you to automatically transfer money between your M1 accounts using “overbalanceand “underbalance rules. 

There are three types of transfers that can be created: 

  1. Earn overbalance: Set a maximum cash balance for your high-yield account and automatically transfer the excess into another M1 account.
  2. Earn underbalance: Automatically refill your high-yield account when the balance falls below a certain balance.
  3. Invest cash overbalance: Set a maximum cash balance for your Invest Account and automatically transfer the excess cash into another one of your M1 Accounts.

You can pay back an outstanding principal balance in an eligible M1 Margin Loan account by using Smart Transfers. An M1 Margin Loan is only available for margin accounts with a with at least $2,000 invested and does not apply to retirement accounts and custodial accounts.*

Although you cannot create Smart Transfers from retirement accounts, you can select a Traditional or Roth IRA as the destination for funds from and overbalance Smart Transfer.

IRAs always have a built-in endpoint of “until the yearly contribution limit is reached,” but you can set an additional endpoint on top of it, like “no more than $1,000 a week”.

 

Overbalance  

To create an overbalance transfer: 

  1. Select a source account to monitor for a specific cash balance. 
  2. Select the balance amount that will trigger a Smart Transfer.
  3. Choose the destinations(s) to send the funds over your set balance 

The Smart Transfers rule will run once your source account’s cash exceeds the selected threshold and the cash will be swept from the source account to the destination account(s). 

Keep in mind that Overbalance Smart Transfer allow for the automated movement of cash. 

Also, the threshold you input is for the cash balance of the account, not the total account value. 

If your source account’s cash balance ever is below your threshold, the Smart Transfer will stop temporarily until you’re over that threshold again, and then the rule will automatically restart.  

Example 1: M1 Savings to Margin then Invest 

Sam doesn’t need more than $30,000 in his Savings Account, and he’d rather pay down his margin to a $5,000 threshold first, before contributing the rest to his Invest Account.

He used to watch his account and margin balance, transferring money anytime he was over $30,000 in M1 Savings.

With Smart Transfers, Sam can set a up a rule that automatically directs any excess cash above $30,000 in Savings to his Margin balance and Invest Account.

Example 2: M1 Invest to Savings

When Kelly’s Invest Account builds up cash from dividends or sales, she’d like to move that cash from Invest to Savings.  

Kelly can set up a Smart Transfers rule that directs any excess cash in Invest to Savings. This will happen automatically.

  

Underbalance  

To create an underbalance transfer: 

  1. Select a source account to monitor for a specific cash balance.
  2. Select the balance amount that will trigger a Smart Transfer.
  3. Choose the destination(s) to send the funds over your set balance. 

The Smart Transfers rule will run every time your source account’s cash is less than the selected threshold, and the cash will be swept from the source account to the destination account. 

Keep in mind that Underbalance Smart Transfers allow for the automated movement of cash. 

Smart Transfers will not sell securities in a taxable Invest Account in order to transfer money. Also, the threshold you input is for the cash balance of the account, not the total account value. 

Example: M1 Cash Account funded from Margin and Savings

Sam wants to have more than $1,000 in his Cash Account and he’d like to cover the difference using an M1 Margin Loan up to 30% of his Invest account’s value, followed by his M1 Savings Account to make up any difference.

He used to watch his Cash Account and transfer money whenever he was under the $1,000.

With Smart Transfers, Sam can set a up a rule that automatically takes a Margin Loan up to a certain percentage before pulling from M1 Savings to keep the account at $1,000.

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How can I create Smart Transfers?

1. Under the Home tab, click the “Move Money” button.

2. Select “Smart Transfer 

3. Select the type of Smart Transfer you want. This will be the source account that excess cash will be transferred from. 

4. Select the balance to trigger the transfer and a receiving account. Remember, any cash exceeding your inputted balance will be swept from your source account to your receiving account. Set an endpoint for the Smart transfer to be triggered at. 

5. Once you’re done inputting your details, click “Create Smart Transfer 

6. Review your Smart Transfer, and if everything looks correct, click “Confirm 

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How can I view and change my Smart Transfers? 

  1. From the Home screen, scroll down and select “Recurring” above your transfers. 
  2. Select the Smart Transfer you want to view.  

To edit your Smart Transfer: 

  1. Select “Edit”
  2. Make your changes  
  3. Select “Update”  
  4. Select “Confirm” 

To pause your Smart Transfer:

Toggle the “Enable Smart Transfer” switch to off.

To delete your Smart Transfer:

  1. Select “Edit” then “Delete”.
  2. Be sure to confirm your changes. 

 

*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/.

 


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M1 disclosures here.

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