M1 High-Yield Savings Account
vs.
M1 High-Yield Cash Account 

Wondering about the difference between High-Yield Savings Accounts and High-Yield Cash Accounts? Here’s a quick overview of what you should know. 

M1 High-Yield Savings Accounts 

What is it? A savings account is defined as a potential interest-bearing deposit account held at a bank or credit union. 

What it is at M1: The M1 High-Yield Savings Account is a traditional savings account furnished by B2 Bank, NA, Member FDIC and offered by M1 Spend LLC, an affiliated entity of M1 Finance LLC (our broker-dealer). The account provides customers with a high-interest rate and additional FDIC insurance1 through B2’s insured deposit network program. Full terms of the program can be found here. 

M1 High-Yield Cash Accounts 

What is it? A cash account, or cash management account, is an account that can combine services and features that are like checking, savings, and/or investment accounts under one product. Cash accounts are typically offered by nonbank financial institutions.

What it is at M1: While the M1 High-Yield Cash Account is an interest-bearing account, it is not furnished by a bank and is instead offered by M1 Finance, LLC, an SEC registered broker-dealer, Member FINRA/SIPC. The M1 High-Yield Cash Account is a type of brokerage account. The account provides customers SIPC protection on the cash held in the account and additional FDIC insurance to the cash balance of the account that is swept to the M1 insured deposit network2. Customers are responsible for monitoring their total assets at each of the sweep program banks. A full list of participating banks can be found here. M1 is not a bank.

Cash Account
Objectives
Earn interest on short-term savings while potentially investing the money in the account.
Costs & Expenses
Potential account maintenance and miscellaneous fees
Safety
SIPC SIPC insurance on cash not swept to partner banks. Additional FDIC insurance on cash swept to M1’s partner bank
Liquidity
Liquid
Tax Features
Interest earned on the account is considered taxable income. Normal investment account tax features apply to Cash Accounts.
High-Yield Savings Account
Objectives
Savings goals, while earning a higher rate of interest and additional safety on funds
Costs & Expenses
Potential account maintenance and miscellaneous fees
Safety
Equal Housing Lender FDIC insurance on cash in the account with additional FDIC insurance available through B2’s insured deposit network program
Liquidity
Liquid
Tax Features
Interest earned on the account is considered taxable income

If you have any questions regarding the information above, please contact M1’s Customer Success team at support@M1.com or 312-600-2883. You can also visit M1’s Help Center for further information. 

M1 High-Yield Cash Account(s) is an investment product offered by M1 Finance, LLC, an SEC registered broker-dealer, Member FINRA / SIPC. M1 is not a bank and M1 High-Yield Cash Accounts are not a checking or savings account. 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. 

1M1 High-Yield Savings Account are furnished by B2 Bank, NA, Member FDIC (“B2”). M1 is not a bank. 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’s Insured 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.

2The cash balance in your Cash Account is eligible for FDIC Insurance once it is swept to our partner banks and out of your brokerage account. Until the cash balance is swept to partner banks, the funds are held in a brokerage account and protected by SIPC insurance. Once funds are swept to a partner bank, they are no longer held in your brokerage account and are not protected by SIPC insurance. FDIC insurance is not provided until the funds participating in the sweep program leave your brokerage account and into the sweep program. FDIC insurance is applied at the customer profile level. Customers are responsible for monitoring their total assets at each of the sweep program banks. A complete list of participating program banks can be found here.

M1 is not a bank. M1 Spend LLC is a wholly-owned operating subsidiary of M1 Holdings Inc. M1 High-Yield Savings Accounts are furnished by B2 Bank, NA, Member FDIC.