Smart Transfers are available for M1 Plus clients with an open M1 High-Yield Savings Account.
Smart transfers allow you to automatically transfer money between your M1 accounts using “overbalance” and “underbalance” rules.
There are four types of transfers that can be created:
- M1 Savings overbalance: Set a maximum cash balance for your Savings Account and automatically transfer the excess into an Invest Account.
- M1 Savings underbalance: Automatically refill your Savings 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.
- Crypto cash overbalance: Set a maximum cash balance for your Crypto Account and automatically transfer the excess to another one of your M1 accounts.
Please note that Smart Transfers utilizing your M1 High-Yield Savings Account are currently being expanded. If the Invest Account you would like to create a Smart Transfer with is not currently an option, please be on the lookout for an announcement from us!
You can pay back an outstanding principal balance in an eligible M1 Margin Loan account by using Smart Transfers.
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.
Overbalance
To create an overbalance transfer:
- Select a source account (Savings, Invest cash, or Crypto cash) 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
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.
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 Savings to Invest
Sam doesn’t need more than $30,000 in his Savings 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 $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 Invest.
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:
- Select a source account 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.
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 Savings. 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 Savings to Invest
Sam wants to have more than $1,000 in his Savings 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 Savings.
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 Savings.
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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?
- 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.
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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