Smart Transfers are available for M1 Plus clients with an open M1 Checking Account.
Smart Transfers allow you to create “Overbalance" or "Underbalance" Smart Transfers, or sweeps between your M1 Checking Account, taxable Invest Accounts and IRAs.
There are three types of transfers that can be created:
- M1 Checking overbalance- Set a maximum cash balance for your Checking Account and automatically transfer the excess into an Invest Account.
- M1 Checking underbalance- Automatically refill your Checking Account when it falls under a certain balance.
- M1 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. You can also select an eligible M1 Margin Loan account to borrow from when your Checking balance falls below a certain level by using the Smart Transfers Spend Underbalance.
Retirement accounts can only participate in overbalance Smart Transfers (no under-balance features). IRAs always have a built-in endpoint of “until the yearly contribution limit is reached,” but can set an additional endpoint on top of it, like “no more than $1,000 a week”. 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.
M1 Checking overbalance
To create an overbalance transfer:
- Select a source account (M1 Checking Account, taxable Invest Account, or IRA) to monitor for a specific cash balance.
- Select the balance amount that will trigger a Smart Transfer.
- Choose the destination to send the funds over your set balance (Checking or taxable Invest Account).
The Smart Transfers rule will run every time your source account’s cash exceeds the selected threshold and the cash will be swept from the source account to the destination account.
Keep in mind that Overbalance Smart Transfer allow for the automated movement of cash.
Smart Transfers will not sell securities in a taxable Invest Account in order to transfer money to Checking. 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.
Sweeps will generally follow the same transfer timing as other ACH transfers.
Example 1: M1 Checking to Invest
Sam doesn’t need more than $1,000 in his Checking Account, and he’d rather contribute the rest to his Invest Account.
He used to watch his account and transfer money anytime he was over $1,000 in M1 Checking.
With Smart Transfers, Sam can set a up a rule that automatically directs any excess cash above $1,000 in Checking to Invest.
Example 2: M1 Invest to Checking
When Kelly’s Invest Account builds up cash from dividends or sales, she’d like to move that cash from Invest to Checking.
Kelly can set up a Smart Transfers rule that directs any excess cash in Invest to Checking. This will happen automatically, and she will be earning the APY in Checking as soon as it becomes available.
M1 Checking underbalance
To create an underbalance transfer:
- Select a source account (M1 Checking, taxable Invest, or IRA) to monitor for a specific cash balance.
- Select the balance amount that will trigger a Smart Transfer.
- Choose the destination to send the funds over your set balance (Checking or taxable Invest).
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 to M1 Checking. Also, the threshold you input is for the cash balance of the account, not the total account value.
Sweeps will generally follow the same transfer timing as other ACH transfers.
Example: M1 Checking to Invest
Sam wants to have more than $1,000 in his Checking Account and he’d like to cover the difference using an M1 Margin Loan.
He used to watch his account and transfer money whenever he was under the $1,000 in M1 Checking.
With Smart Transfers, Sam can set a up a rule that automatically takes a Margin Loan to keep the account at $1,000 from an M1 Margin Loan to M1 Checking.
_____________________________________________________________________________
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”
_____________________________________________________________________________
How can I view and change my Smart Transfers?
- From the Home tab, select “All activity” and then “Rules”
- Select the Smart Transfer you want to view.
To edit your Smart Transfer:
1. Click “Edit” in the top right corner
2. Make your changes
3. Click “Update”
4. Click “Confirm”
To pause your Smart Transfer:
Toggle the “Enable Smart Transfer” switch at the top of the screen to off.
To delete your Smart Transfer:
Click “Edit” in the top right corner then click “Delete” in the top right-hand corner.
Be sure to confirm your changes.
If you have further questions, please contact us.