M1 Launches High-Yield Savings Account with 5.00% APY
Tue, May 23, 2023 9:30 AM
CHICAGO--(BUSINESS WIRE)--May 23, 2023--
M1, the finance app offering automated investing, borrowing, and banking products, today launched the M1 High-Yield Savings Account with 5.00% APY 2. M1’s new account immediately becomes one of the highest-yielding savings accounts available.
Additionally, the M1 High-Yield Savings Account is insured up to $5 million 1, providing a materially higher level of protection than most competing financial institutions that only meet the standard level of FDIC insurance of $250,000. The savings account has no minimum deposit requirement and no cap on a user’s interest-generating account balance.
This latest product launch builds upon M1’s suite of financial products, which helps people grow their assets, automate their finances, and manage their wealth.
"Most Americans would benefit by switching from their legacy megabank to a modern high-yield savings account due to the high interest rate environment we are in,” said Brian Barnes, M1 Founder and CEO. “Despite consistent rate hikes from the Fed and continuing high inflation, the nation’s big banks haven’t meaningfully increased the APY offered through their savings vehicles. As of May 2023, the savings accounts available through JPMorgan Chase Bank only offer interest rates as high as 0.02% 3. So where is that money going, if not to the end customer? Straight into the pockets of their executives and their record-breaking bottom lines. With today’s launch, we are doing our part to put the money people deserve straight back into their pockets.”
While the M1 High-Yield Savings Account is immediately available to all M1 users, M1 clients with an active M1 Plus membership will earn 5.00% APY 2, and those without a membership will earn 1.50% APY 2.
With the launch of the M1 High-Yield Savings Account, M1 is offering three free months of M1 Plus for all users 4. Current M1 Plus members will see three free months added to the end of their subscription. When it's time to renew, membership pricing will resume at $10/month (or $95 per year).
The M1 High-Yield Savings Account is made possible through a landmark partnership between M1 and B2 Bank NA, Member FDIC, the bank formerly known as First National Bank of Buhl that Brian Barnes personally purchased in July 2021.
M1 is a self-directed wealth-building platform that helps people maximize their money through automated tools, services, and topflight rates. With more than $6 billion in assets under management 5, M1 helps hundreds of thousands of people invest for the long run, borrow for less, spend strategically, and save for their future. M1 was named 2022 Best for Low Costs and 2022 Best for Sophisticated Investors by Investopedia.
Learn more at www.m1.com.
1 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’sInsured 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
2 Obtaining stated APY (annual percentage yield) or opening a savings account does not require a minimum account balance. Stated APY is valid from date of account opening. Account fees may reduce earnings. Higher APY rate subject to paid M1 Plus subscription. Rates are subject to change.
3 Source: https://www.chase.com/personal/savings/interest-savings/interest-rates
4 Your free trial (a $30 value) begins the date you enroll in the M1 Plus subscription, and ends 90 days after (“Free Trial”). Upon expiry of the Free Trial, your account is automatically billed a monthly subscription fee of $10 unless you elect annual billing of $95 or cancel your subscription under your Membership details in the M1 Platform.
5 Information as of May 16, 2023
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.
M1 Plus is a paid membership that confers benefits for products and services offered by M1 Finance LLC, M1 Spend LLC and M1 Digital LLC, each a separate, affiliated, and wholly-owned operating subsidiary of M1 Holdings Inc. “M1” refers to M1 Holdings Inc., and its affiliates.
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CONTACT: Greta Gordon
KEYWORD: UNITED STATES NORTH AMERICA ILLINOIS
INDUSTRY KEYWORD: BANKING PERSONAL FINANCE PROFESSIONAL SERVICES FINANCE
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PUB: 05/23/2023 10:30 AM/DISC: 05/23/2023 10:30 AM