M1 Finance

M1 Plus Program Pros for 2022

What You’ll Get with M1 Plus

When you upgrade your regular M1 Finance account to a Plus account, you’ll get some really nice perks that other M1 customers don’t get. Here’s a sampling:

1. Two trading windows per day in an Invest account (regular M1 clients get just one).

2. Interest earned on free cash balances in a Spend account. Currently, the APY is 1%.

3. 1% cash back on purchases with the M1 Spend debit card.

4. Zero forex fees.

5. Five card designs to choose from.

6. Four ATM fee rebates per month.

7. Ability to transfer up to $50,000 per day through the Automated Clearing House (ACH).

8. 2% APY on margin loans with M1 Borrow (regular M1 customers pay 3.5%).

9. The latest addition to this impressive list is Smart Transfers, which we will discuss next. Before we do that, we should point out that upgrading to M1 Plus will set you back $125 per year. The financial conglomerate does occasionally offer discounts; so keep an eye on your M1 account.

Open M1 Finance Account

Open M1 Finance Account

M1 Finance Review

M1  rating

Continue to M1 Finance Review »

M1 Plus Smart Transfers

If you’re an M1 Finance customer, you may be eligible for free Smart Transfers. This is a new service that allows M1 Invest customers to establish periodic automatic transfers. To take advantage of this new service, you will need to be a subscriber to M1 Plus and have an M1 Spend account.

M1 Plus Upgrade

How It Works

With a single M1 Finance login, you’ll have two accounts, a Spend account and an Invest account. Obviously, you’ll need two accounts to perform a transfer. On the M1 platform, you’ll want to specify the source account for the transfer along with the destination account. Either account (Invest or Spend) can serve either role. You’ll also need to specify the balance level that will trigger a transfer.

Keep in mind that Overbalance Smart Transfers, as they are officially called, only apply to free cash balances. M1’s software will not sell securities to complete a transfer. The system also won’t perform a transfer if your cash balance is below the level you specify.

Another piece of fine print worth pointing out is that transfers aren’t performed in real time, which is a little surprising given that both accounts are under the same roof. An Overbalance Smart Transfer takes the same amount of time as an ACH transfer, which is usually a couple of business days.

Making a Smart Transfer

When you’re ready to set up Overbalance Smart Transfers, just open the M1 Finance app or website. After you log in, click or tap on the Move Money button.

On the next page, you’ll get a list of options, such as one-time transfer and recurring transfer. If you’ve already signed up for M1 Plus, you’ll see an option for Smart Transfer. Select this.

If you haven’t signed up for M1 Plus yet, you’ll want to set up the transfer on the website. In the list of transfer types, you’ll see an option to sign up for M1 Plus. Of course, you could sign up for M1 Plus before beginning the transfer, in which case the Smart Transfer option will already be there.

M1 Finance smart transfers

M1 Finance has this strange system where you have to input the level above which cash will be transferred. This means any cash that exceeds the level you specify will be transferred.

For example, say you type in $400. Any amount above $400 would be transferred, with $400 remaining in the source account. So if your balance reached $435, only $35 would actually transfer.

Benefits of Overbalance Smart Transfers

Setting up Overbalance Smart Transfers would be a good idea if you have sufficient dividends coming in from your investment account. You could transfer these cash dividends into your Spend account so that you can use your M1 debit card.

You would need to turn off the auto-invest feature inside your M1 Invest account to accomplish this; otherwise, the cash dividends would be reinvested.

Alternatively, if you don’t want too much cash sitting in your Spend account, you could establish your Invest account as the receiving account and send money over for investing.

Open M1 Finance Account

Open M1 Finance Account

About the Author
Chad Morris is a financial writer with more than 20 years experience as both an English teacher and an avid trader. When he isn’t writing expert content for Brokerage-Review.com, Chad can usually be found managing his portfolio or building a new home computer.