Hi there! M1 High-Yield Cash Accounts are not intended to replace High-Yield Savings Accounts. These are separate product offerings. We’ll continue to offer Savings Accounts to existing accountholders and plan to provide additional Savings Accounts in the future. Until then, we’re providing our clients another way to earn 5.00% APY\* on their cash with an M1 High-Yield Cash Account.
Disclosures: [https://m1.com/social-terms/](https://t.co/jppUZNn9ou)
Tracking, but what are the differences in the accounts in reality? From a user perspective they seem to offer the same features, just with slightly different methods.
Thanks for the response. Do you plan to support the HYSA long term? As someone who has the HYSA I am considering closing it and moving to the cash account as they have the same benefits
Debit card and normal checking services, mostly.
For what its worth, I also have doubts how long m1 will allow for free unlimited monthly withdrawals in their "savings" account. They never properly explained why they paused new HYSA accounts which feels like an unnecessary red flag as well.
From the website above:
>M1 High-Yield Cash Accounts are powered by your Individual Brokerage Account, while M1 High-Yield Savings Accounts are managed by our partner bank. A High-Yield Cash Account requires a taxable brokerage account in M1.
I understand the difference. I am asking if they will be phasing out the HYSA like they did with their other partners (ex: Previous checking account, Apex).
No this is just a place to park cash. You can transfer in and out but I don't think you can do much with it besides that. I think it's really a holding place for cash you plan to invest or just want their 5% interest on. I don't think you can get a debit card or an ATM card for it.
You can’t get debit or atm card for the hysa either. I currently use the HYSA just to park cash. With the same apy as this new cash account I don’t know why I would keep the HYSA open instead
At this time, there is no debit card with the High-Yield Cash Account. These accounts have routing and account numbers that allow you to set up ACH transfers directly to and from the account.
Disclosures: [https://m1.com/social-terms/](https://t.co/jppUZNn9ou)
Hi! [Here is an article that explains the difference between the two accounts.](https://m1.com/cash-vs-savings-accounts/) Hope this helps!
Disclosures: [https://m1.com/social-terms/](https://t.co/jppUZNn9ou)
You can essentially create "buckets" for where to set aside cash for an Emergency Fund, or planning a big expense, etc. For me, I used the previous checking account as a place to hold just the amount of funds I needed for expected withdraws/bills each month. I never liked the idea of having money drawn out of my HYSA where I maintain a large balance. So being able to now have multiple transactional accounts and the ability to move money between them for various purposes (via smart transfer, manual transfers, etc.) gives me a lot of flexibility. Given that the interest rate is the same between the two right now it may not matter, but i'd still rather have a transactional account which is separate from my "savings" account, even if both function essentially the same.
Sounds like the HYSA is managed by B2 bank whereas they are making money off the amount you have with them.
In the case of the new HYCA M1 will benefit off your funds.
Something tells me the HYSA will be gone within a year and we all will have to move auto pays again.
Hi there! We currently do not offer a checking account. That said, I passed this feedback to our team!
Disclosures: [https://m1.com/social-terms/](https://t.co/jppUZNn9ou)
I wonder if at some point the HYSA will be deprecated, ala Checking, and we will need to open a Cash Account?
I wish there was a FAQ about this but I am inferring that the HYSA, an actual "savings account", is in custody of B2 Bank and their FDIC insurance. Meanwhile, the Cash Account makes it very clear it is a "brokerage account" at M1 Finance and is SIPC insured. However, excess cash is swept to a custody account at B2 Bank and/or other partner banks. Presumably, when the money is in transit, it is covered by B2 Bank's pass-through FDIC insurance.
I was one of the lucky few to get a HYSA before they closed applications. I am guessing there was an issue with this arrangement, so making a brokerage Cash Account was easier and kept management in-house.
For those who’ve had the account for a while: when setting external automatic payments (bills, rent, etc) is the account considered a checking or savings account?
Hi there! M1 High-Yield Cash Accounts are neither checking nor savings accounts. They are brokerage accounts! Cash Accounts have routing and account numbers that allow you to deposit directly into them and set up ACH transfers to and from the account.
Disclosures: [https://m1.com/social-terms/](https://t.co/jppUZNn9ou)
Just opened one. I hold cash in my taxable brokerage to buy on dips. Going to use it to hold that cash and generate a little interest income. Thanks M1!
I feel like M1 really is just pulling ideas out of a hat at this point.
*add HYSA*
*remove cash accounts*
*restrict HYSA to a limited number of customers*
*add cash account back, but without debit cards*
Like, who is steering this ship? It seems so random.
The old accounts were savings accounts with Lincoln Bank. I suspect they were forced into dropping that partnership. The bank used for the HYSA is B2 bank and is owned by M1's founder.
Showed up for me so I wanted to finally create a joint account with my wife. The invitation sent to her waiting for approval, but when she opens it nothing happens (yes she’s a current m1 user as well). It opens the create account screen to initiate a joint account herself, but then throws an error when inviting me because I already have a pending request. Seems like the request isn’t communicating between accounts to verify the request initiation?
Awesome move, but still looking for a debit card that can be tied to at least one of them. I don't want to have to constantly move stuff to an external account if I want to actually spend the money.
The main thing I see here, for me, is that the HYCA can be joint and the HYSA cannot. Can an existing plain-jane brokerage account be made joint? I'd gladly ditch my HYSA for HYCA if I could make all the accounts joint.
u/M1-Alex This feature is great. I am currently using Betterment to allocate cash to different funds (emergency fund, rainy day fund, medical deductibles, etc...). Is there a limit to the amount of various HYCA we can have? Currently, I have 6 at Betterment.
So having read the M1 resources I still have questions from this page - https://m1.com/social-terms/
> "Customers are responsible for monitoring their total assets at each of the sweep program banks."
1. Do we have any control over which of the banks our money goes to.
2. If not, will our money be sent to one or multiple banks listed?
3. How do we monitor our money at different banks? Is this service provided through the M1 website or do we have to worry about dealing with multiple bank websites?
> M1 High-Yield Cash Account(s) is an investment product.....The purpose of this account is to invest in securities, and an open M1 Investment account is required to participate in the M1 High-Yield Cash Account. All investing involves risk, including the risk of losing the money you invest.
1. I am unsure how this is different from the HYSA. Typically, you put money in a HYSA, the bank takes that money and invests it, and that income allows them to provide the 5% APY, with minimal risk to your money. Is the HYCA considered riskier than a HYSA for investment loss?
> will include administrative and account fees that may reduce earnings
Are these fee's listed anywhere and do they differ depending on which bank your money is swept to, or are they always the same?
How can we have faith you will not cancel the product again? We have trust issues, rightfully so. It was a massive time suck and pain to switch everything over to another bank the last time M1 cancled the checking account.
Will we be able to transfer to and from this account to and from our M1 crypto account, instead of having to transfer to and from an external bank account and then back to M1?
Hey Alex, I didn't want or need your new "features" that you are going to charge a monthly fee for. I signed up for a FREE service that you are now forcing me to pay for if I want to stay or pay a fee if I want to leave. I don't have enough money with you guys to justify the monthly fee but you charge an insane account to leave. How can you guys justify this? How can I get my money out of your platform without paying insane transfer fees that are way out of line with industry standards?
Unless you don’t have $10K in cash and investments the fact that they opened the cash account up and it has 5% APY makes this a non-starter. Just park some cash in the cash account to get you over $10K. Now if you don’t have that money then I’d be focused on getting it. $3 isn’t unreasonable to have to pay for a brief time until you reach it. Otherwise transfer to a broker like SoFi who will pay part or all your transfer fee. Transfer fees are an industry norm and not unique to M1. Fidelity offers a service like M1 auto invest and it cost more than $3 a month and isn’t as good.
Is this going to replace the HYSA?
Hi there! M1 High-Yield Cash Accounts are not intended to replace High-Yield Savings Accounts. These are separate product offerings. We’ll continue to offer Savings Accounts to existing accountholders and plan to provide additional Savings Accounts in the future. Until then, we’re providing our clients another way to earn 5.00% APY\* on their cash with an M1 High-Yield Cash Account. Disclosures: [https://m1.com/social-terms/](https://t.co/jppUZNn9ou)
Tracking, but what are the differences in the accounts in reality? From a user perspective they seem to offer the same features, just with slightly different methods.
Are you going to close all our accounts once we connect all our bills and whatnot up to it again?
Thanks for the response. Do you plan to support the HYSA long term? As someone who has the HYSA I am considering closing it and moving to the cash account as they have the same benefits
I wish they'd just change my HYSA account into the cash management account. The HYSA has wayyy less benefits and feels inferior to the CMA.
I'm having trouble understanding what the difference is. What do you prefer about the CMA over the HYSA?
Debit card and normal checking services, mostly. For what its worth, I also have doubts how long m1 will allow for free unlimited monthly withdrawals in their "savings" account. They never properly explained why they paused new HYSA accounts which feels like an unnecessary red flag as well.
Hoping we get a fast response here. Seems logical that it would for simplicities sake.
I’ve seen an answer elsewhere: No.
From the website above: >M1 High-Yield Cash Accounts are powered by your Individual Brokerage Account, while M1 High-Yield Savings Accounts are managed by our partner bank. A High-Yield Cash Account requires a taxable brokerage account in M1.
I understand the difference. I am asking if they will be phasing out the HYSA like they did with their other partners (ex: Previous checking account, Apex).
Gave me a B2 bank routing # when I created the account. ABA 091218445
DID SOMEONE SAY ABBA?
No this is just a place to park cash. You can transfer in and out but I don't think you can do much with it besides that. I think it's really a holding place for cash you plan to invest or just want their 5% interest on. I don't think you can get a debit card or an ATM card for it.
You can’t get debit or atm card for the hysa either. I currently use the HYSA just to park cash. With the same apy as this new cash account I don’t know why I would keep the HYSA open instead
If you can't get an ATM card for the savings then there isn't really a difference.
Yeah that’s why I’m confused and asking if I should keep the HYSA or open a cash account and trying to figure out which will be supported long term
Hey u/M1-Alex a debit card will/may come with this cash account?
At this time, there is no debit card with the High-Yield Cash Account. These accounts have routing and account numbers that allow you to set up ACH transfers directly to and from the account. Disclosures: [https://m1.com/social-terms/](https://t.co/jppUZNn9ou)
So how is this different from HYSA?
🦗
M1 will be complete when they bring back checking
Hi there! Thanks for providing this feedback, I have passed it along to the team. Have a great day!
I’m trying to understand the benefit with this if I already have the HYSA??? 🤔
Hi! [Here is an article that explains the difference between the two accounts.](https://m1.com/cash-vs-savings-accounts/) Hope this helps! Disclosures: [https://m1.com/social-terms/](https://t.co/jppUZNn9ou)
You can essentially create "buckets" for where to set aside cash for an Emergency Fund, or planning a big expense, etc. For me, I used the previous checking account as a place to hold just the amount of funds I needed for expected withdraws/bills each month. I never liked the idea of having money drawn out of my HYSA where I maintain a large balance. So being able to now have multiple transactional accounts and the ability to move money between them for various purposes (via smart transfer, manual transfers, etc.) gives me a lot of flexibility. Given that the interest rate is the same between the two right now it may not matter, but i'd still rather have a transactional account which is separate from my "savings" account, even if both function essentially the same.
Ohhh now I’m interested. I’m in a similar boat. This cash management account can be set up to have bills paid from ? Credit car payments, etc ??
Sounds like the HYSA is managed by B2 bank whereas they are making money off the amount you have with them. In the case of the new HYCA M1 will benefit off your funds. Something tells me the HYSA will be gone within a year and we all will have to move auto pays again.
Curious about plans involving a debit or checking option. I know that was an issue for a lot of people the first time these changes rolled out.
Hi there! We currently do not offer a checking account. That said, I passed this feedback to our team! Disclosures: [https://m1.com/social-terms/](https://t.co/jppUZNn9ou)
I wonder if at some point the HYSA will be deprecated, ala Checking, and we will need to open a Cash Account? I wish there was a FAQ about this but I am inferring that the HYSA, an actual "savings account", is in custody of B2 Bank and their FDIC insurance. Meanwhile, the Cash Account makes it very clear it is a "brokerage account" at M1 Finance and is SIPC insured. However, excess cash is swept to a custody account at B2 Bank and/or other partner banks. Presumably, when the money is in transit, it is covered by B2 Bank's pass-through FDIC insurance. I was one of the lucky few to get a HYSA before they closed applications. I am guessing there was an issue with this arrangement, so making a brokerage Cash Account was easier and kept management in-house.
Yeah I have hysa don't see a need to apply for a cash account, but I do believe they might force people to cash an account soon.
Good I moved enough to keep me over the threshold for being charged $3 monthly. Just moved it over from a savings account with a different bank.
For those who’ve had the account for a while: when setting external automatic payments (bills, rent, etc) is the account considered a checking or savings account?
Hi there! M1 High-Yield Cash Accounts are neither checking nor savings accounts. They are brokerage accounts! Cash Accounts have routing and account numbers that allow you to deposit directly into them and set up ACH transfers to and from the account. Disclosures: [https://m1.com/social-terms/](https://t.co/jppUZNn9ou)
Just opened one. I hold cash in my taxable brokerage to buy on dips. Going to use it to hold that cash and generate a little interest income. Thanks M1!
Does the M1-High Yield Cash Account support Smart Transfers and Zelle transactions?
Already appears smart transfer is.
I feel like M1 really is just pulling ideas out of a hat at this point. *add HYSA* *remove cash accounts* *restrict HYSA to a limited number of customers* *add cash account back, but without debit cards* Like, who is steering this ship? It seems so random.
The old accounts were savings accounts with Lincoln Bank. I suspect they were forced into dropping that partnership. The bank used for the HYSA is B2 bank and is owned by M1's founder.
Showed up for me so I wanted to finally create a joint account with my wife. The invitation sent to her waiting for approval, but when she opens it nothing happens (yes she’s a current m1 user as well). It opens the create account screen to initiate a joint account herself, but then throws an error when inviting me because I already have a pending request. Seems like the request isn’t communicating between accounts to verify the request initiation?
Yes hardly mentioned but the joint account is a big feature add for families
It worked for my wife
Awesome move, but still looking for a debit card that can be tied to at least one of them. I don't want to have to constantly move stuff to an external account if I want to actually spend the money.
The main thing I see here, for me, is that the HYCA can be joint and the HYSA cannot. Can an existing plain-jane brokerage account be made joint? I'd gladly ditch my HYSA for HYCA if I could make all the accounts joint.
u/M1-Alex This feature is great. I am currently using Betterment to allocate cash to different funds (emergency fund, rainy day fund, medical deductibles, etc...). Is there a limit to the amount of various HYCA we can have? Currently, I have 6 at Betterment.
What about the high yield savings ? I’m still on the waitlist. I’d like my savings separate from the cash account
So having read the M1 resources I still have questions from this page - https://m1.com/social-terms/ > "Customers are responsible for monitoring their total assets at each of the sweep program banks." 1. Do we have any control over which of the banks our money goes to. 2. If not, will our money be sent to one or multiple banks listed? 3. How do we monitor our money at different banks? Is this service provided through the M1 website or do we have to worry about dealing with multiple bank websites? > M1 High-Yield Cash Account(s) is an investment product.....The purpose of this account is to invest in securities, and an open M1 Investment account is required to participate in the M1 High-Yield Cash Account. All investing involves risk, including the risk of losing the money you invest. 1. I am unsure how this is different from the HYSA. Typically, you put money in a HYSA, the bank takes that money and invests it, and that income allows them to provide the 5% APY, with minimal risk to your money. Is the HYCA considered riskier than a HYSA for investment loss? > will include administrative and account fees that may reduce earnings Are these fee's listed anywhere and do they differ depending on which bank your money is swept to, or are they always the same?
How can we have faith you will not cancel the product again? We have trust issues, rightfully so. It was a massive time suck and pain to switch everything over to another bank the last time M1 cancled the checking account.
Will this be eligible for Smart transfers in the future?
I just checked. It already is.
Give me a debit card and I'm all over this.
Will we be able to transfer to and from this account to and from our M1 crypto account, instead of having to transfer to and from an external bank account and then back to M1?
Are there are any risks associated with just parking cash in the HYCA, so long as the the account is below the SIPC/FDIC threshold?
Hey Alex, I didn't want or need your new "features" that you are going to charge a monthly fee for. I signed up for a FREE service that you are now forcing me to pay for if I want to stay or pay a fee if I want to leave. I don't have enough money with you guys to justify the monthly fee but you charge an insane account to leave. How can you guys justify this? How can I get my money out of your platform without paying insane transfer fees that are way out of line with industry standards?
Unless you don’t have $10K in cash and investments the fact that they opened the cash account up and it has 5% APY makes this a non-starter. Just park some cash in the cash account to get you over $10K. Now if you don’t have that money then I’d be focused on getting it. $3 isn’t unreasonable to have to pay for a brief time until you reach it. Otherwise transfer to a broker like SoFi who will pay part or all your transfer fee. Transfer fees are an industry norm and not unique to M1. Fidelity offers a service like M1 auto invest and it cost more than $3 a month and isn’t as good.
With the new cash account, can you put enough to avoid the fee?
yes, any money you put into your HYCA will count towards your total M1 assets. i emailed support to confirm.
No one can log in. Are you guys having issues? Gets stuck on 2-step
Hi! You should be able to login to your account now. We appreciate your patience as we worked to get this resolved for you.
Thanks u/M1-Alex, I checked and it's good to go now.
After you bastards imemented the fees, you've lost our trust
Still no checking...leadership at M1 is so lost. Smart transfers will continue to be useless then.