In a promotional push as banks and Fintechs rush to offer high-yield savings accounts, neobank M1 has announced an account that offers 5% interest for users that have an M1 Plus membership. If you do not have a membership account, holders may earn a mere 1.50% APY. The M1 Plus membership comes with a charge of $10 a month or $95 a year.
M1 offers the savings service in partnership with B2 Bank that can provide FDIC insurance up to $250,000 per account. Deposits may be insured up to $5,000,000 through B2’s Insured Deposit Network Program.
M1 offers a portfolio of services to its customers, including crypto, traditional investing via a brokerage, retirement accounts, as well as other banking features.
M1 reported topping $5 billion in client assets in 2021. The company raised a $150 million Series E round in 2021 as well.
The race for high-interest rate savings accounts hit the fast lane when Apple announces Apple Savings with a 4.15% interest rate driving other banks and Fintechs to adjust their offerings with several beating Apple’s rate – including now M1.