M1 High-Yield Savings Account Review of 2024

Our review of the M1 savings account shows how consumers are able to earn a high rate with FDIC-insured deposits.
Written by Anna Baluch
Financial Expert
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Managing Editor
Our methodology is designed to provide consumers with unbiased and comprehensive evaluations of various banking products. Visit our Editorial Policy page for more information.

Headquartered in Chicago, M1 Finance is a financial services company specializing in automated investing, borrowing, and banking products.

M1 now offers a high-yield savings account with an impressive APY that you may not be able to find at other banks and financial institutions.

Keep reading to find out how the M1 high-yield savings account works so you can decide if it makes sense for your unique financial goals.

Overall Impression

The M1 high-yield savings account is a great option if you have significant savings and wish to maximize your returns with a highly competitive interest rate. This is particularly true if you want to join M1 Plus and take advantage of M1’s other products.

If you prefer a more traditional banking experience with personalized service and in-person branches, you should look elsewhere.

Pros

  • The M1 high-yield savings account pays one of the most competitive APYs on the market.
  • Most banks cap their FDIC insurance to $250,000 dollars, but MI increases this cap due to partnerships with several banks.
  • Many high-yield savings accounts require a minimum balance. The M1 high-yield savings does not.
  • Many high-yield savings accounts require a minimum balance. The M1 high-yield savings does not.
  • M1 offers other products in addition to the M1 high-yield savings account. These include investing and borrowing products.

Cons

  • You must be an M1 member and pay a monthly membership fee to earn the highest APY.
  • The M1 high-yield savings account does not accept cash or check deposits. To make a deposit, you will have to withdraw funds.
  • Accounts are managed digitally, online, or via the mobile app. There are no physical branches for in-person banking.
  • There is limited customer support. Support via phone and live chat is not available.

Which Banks Have the Best Savings Account Rates?

Savings rates are higher than they’ve been in over 10 years, but if you’re using a traditional, big-name bank, you’re missing out on these rates.

Here are our top picks for those who want to earn the highest interest on their savings.

Compare to Other Banks

The M1 high-yield savings account is one of the many places to park your savings. Here are several other options you might want to consider.

Synchrony

Synchrony’s high-yield savings account is similar to M1’s, offering an attractive APY with no minimum balance requirement. It also provides monthly refunds of up to $5 for domestic ATM withdrawal fees.

In addition, other services like money market accounts, IRAs, CDs, and credit cards are also available.

Discover® Bank 

While FDIC-insured Discover Bank is known for its credit cards, it offers an online savings account with no minimum opening deposit or monthly maintenance fees.

You can open a savings account in minutes and access it through the Discover mobile app, online banking, and ATMs. It might make sense if ATM access is essential to you, as M1 doesn’t offer it.

SoFi

In addition to many other products, SoFi has a high-yield savings account with a competitive interest rate and no monthly fees.

Other benefits you won’t find with M1 include access to more than 55,000 fee-free ATMs and perks, like financial planning, travel deals, referral bonuses, and discounts on loans.

SoFi requires customers to open a checking account in order to have a savings account.

Bank of America

Bank of America is a good choice if you must store your money somewhere with many physical branches, as M1 is strictly an online banking platform.

While the bank charges fees to manage a savings account, there are several ways you can avoid them. Bank of America also allows account holders to set up online notifications to stay on track and make smart financial decisions.

A significant drawback for Bank of America is the meager savings APY, which is below the national average.

How M1 Savings Works

The M1 high-yield savings account allows you to grow your savings with an impressive APY. You’ll need to become an M1 Plus member and pay a monthly membership to earn as much interest as possible.

While there are no cash or check deposits, you can transfer funds from internal or external bank accounts. Your savings will be FDIC-insured for up to $5 million, and you may manage your account online or via the mobile app.

Who Is M1 Savings For?

The M1 high-yield savings account might be a good fit if any of the following apply to you.

  • You’re already an M1 Plus member or M1 customer.
  • You want to maximize your savings.
  • You’re comfortable with online or mobile banking.
  • You’d like the peace of mind of additional FDIC insurance.
  • If you prefer a more traditional banking experience and the chance to bank in person, you should look into other options.

Rating the Features 

As you explore the M1 high-yield savings account, consider these features.

User Experience

M1 makes it a breeze to sign up for a high-yield savings account. You can go through the short process online or via the mobile app. M1’s website also features frequently asked questions and contact info that may come in handy should you come across any questions or concerns.

Fees

Unlike other high-yield savings accounts, M1 doesn’t charge application, account maintenance, or hidden fees. However, you may be charged inactivity fees, transfer fees, and other bank fees in some situations. Also, you’ll have to pay a monthly membership fee if you decide to join M1 Plus so you can lock in the highest APY.

Rates

Perhaps the most noteworthy benefit of the M1 high-yield savings account is its impressive APY. While its APY can and will likely change, it’s currently one of the highest rates available for U.S. savings accounts. This is great news if you have a lot of money to store and want to maximize your savings.

Minimum Deposit

Some savings accounts require you to make a minimum deposit of $25, $100, or even more. The M1 high-yield savings, however, does not. To open an account, you can deposit as much or as little as you want.

Tools, Extras

As an M1 savings account holder, you can enjoy several perks. First, there’s an intuitive mobile app that’s ideal for banking on the go. The account also allows you to make automatic deposits so that you’re constantly working on your long-term savings goals. It’s also FDIC-insured for up to $5 million. In addition, M1 offers other extras useful, such as investing tools, a cash-back rewards credit card, and discounts on loans.

Customer Support

Customer support is available online via the M Help Center. You can plug a keyword into the search box to find answers to commonly asked questions. Another option is to submit a request online and include your email address. M1’s customer service team promises to respond to all requests within one business day.

Access

Since the M1 high-yield savings account is easily accessible through a mobile app or online interface, you can use it regardless of where you live. Keep in mind that there are no physical branches for in-person banking.

Safety and Security

Rest assured, M1 prioritizes safety by protecting its accounts with 4096-bit encryption. It also allows you to turn on two-factor authentication. M1 is also registered with the Financial Industry Regulatory Authority (FINRA) and a Securities Investor Protection Corporation (SIPC) member.

Getting Started

M1 makes it simple to open a high-yield savings account. Once you create a username and password, you’ll be asked to share some basic personal information, like your name, address, phone number, email address, and Social Security number.

Then, you can transfer funds electronically via an M1 or external bank account. Remember that you’ll need to become an M1 Plus member to enjoy the highest APY.

Frequently Asked Questions 

Is my money safe?

Storing your money in the M1 savings account is safe. M1 is a member of the FDIC and will insure your funds up to $5 million. This is 20 times the FDIC insurance that most banks and financial institutions offer.

Does M1 offer a bonus?

M1 does not offer a bonus or similar incentive for new savings account holders. But if you’re looking to maximize your savings and are okay with becoming an M1 Plus member, you’ll find that its impressive interest rate makes up for it.

Do I have to join M1 to use its savings account?

To lock in the highest interest rate, you must become an M1 Plus member. Your first three months are free. Then, you’ll be charged a monthly subscription fee.

Should I open an M1 high-yield savings account?

The M1 high-yield savings account could be a solid pick if you have a lot of money in savings and hope to maximize your returns. It’s also worth considering if you’re already an M1 Plus member.

About Author
Anna Baluch
Anna Baluch is a personal finance writer and expert who writes about financial topics ranging from personal and student loans to mortgages, debt relief, auto financing, and budgeting. As a contributor to MoneyRates, Anna’s insights are backed by her hands-on experience, exemplified by her achievement of paying off her mortgage in just 16 months, a journey she shared on the “Burn Your Mortgage” podcast in 2019. Her knowledge and expertise have appeared on personal finance platforms such as LendingTree, Business Insider, Credit Karma, Experian, American Express, Rocket Mortgage, U.S. News & World Report, and Policygenius. Anna is dedicated to guiding consumers toward making informed financial choices.