M1 Spend Review 💸 1.5% APY + 1% CASH BACK! #Best Education Page #Online Earning

- [Host] How's it going today guys?

Welcome back to the channel.

Hope you're having a great day so far.

So, in this video we're gonna be talking about

a brand new checking account that is being offered

by one of these brokerage companies out there

called M1 Finance and it is really quite interesting

what they are putting together here.

And I'm gonna be honest with you guys,

after the whole deal with Robinhood

trying to offer that 3% checking account

and all of the stuff that went down there,

when I found out that M1 finance was offering

their own similar type checking account,

I was very skeptical.

I did a lot of research on this, and I kinda want to clarify

what it is that they are offering,

how this is different than what Robinhood is trying to do,

and whether or not this may or may not

be a good fit for you.

So, for those of you who are not familiar, M1 Finance

is one of these roll board visor brokerage accounts.

I have a number of different reviews on my channel.

I'll link up to one in the description below

if you guys wanna learn more about M1 Finance

but I really like the brokerage platform.

In my opinion it's one of the best ones out there

for beginners because it helps you build

a well diversified portfolio and automate a lot of the tasks

involved with your investing.

So M1 Finance also has M1 Borrow which is essentially

an area where you can get a loan

against the securities in your account

and soon they're going to be releasing the third piece

of this which is M1 Spend and we have the basic account here

which is going to be completely free

but then you have the M1 Plus account

which does have an annual fee but it comes with some serious

perks that you might want to consider looking into.

So, what they're going to be releasing is a checking account

that directly ties in or integrates with both M1 Finance,

the investing platform,

as well as the M1 Finance borrowing platform.

It is going to be backed by the Lincoln Savings Bank

and it is FDIC insured which is the huge component that

Robinhood was not able to tie down with their platform.

With the Robinhood Checking account they were trying to get

the SIPC insurance, SIPC said no we're not insuring this,

and now it's basically been crickets,

we have no idea what's going on with that so,

for now, that 3% checking account is still a piped dream.

So, now we find out that M1 finance is going to be launching

their own checking account but they do have

that FDIC insurance and they are backed

by a legitimate financial institution

so I do believe this is going to be going over

a lot better than the Robinhood deal did.

Now, it's not yet released, there is a link

in the description if you guys wanna join a waiting list.

I am affiliated with M1 Finance,

if you guys don't wanna use my link you don't have to

but it certainly does help me out and I do appreciate that

as it's a way to kind of give back to me

for putting together these videos.

So, first of all let's talk about the basic M1 Spend

which is going to be completely free

and it integrates directly like we said

with the M1 Finance account.

It is FDIC insured.

Like we said, it is completely free.

You're gonna get a debit card as well as a checking account.

No minimum balance.

No Maintenance fees and you get one

ATM reimbursement per month.

So, why would you want this in the first place?

Well number one, the main reason here is that it

directly integrates with your M1 Investing account,

so I don't know if you guys have ever invested

in the stock market,

I'm guessing you have if you're watching this channel,

but one of the biggest pain in the butts

is when you transfer money from your bank

over to your brokerage account

and you have that three day hold on your funds.

Well, if you already have money within your M1 Spend account

you can invest that without having to deal with that three

day transfer and that can be a huge time saving advantage,

especially if you're looking to make a quick move

in the stock market and capitalize on a certain opportunity.

Now, where it gets interesting is when we talk about M1 Plus

which is the premium version they're going to be offering

of this checking account.

M1 Plus is also FDIC insured.

They do have a fee of 125 per year,

but they're lowering that to $50 for early bird access

if you guys want to sign up for that waiting list

to get this card, 50 bucks for the first year,

you're gonna get debit and checking,

you're going to get a 1.5% APY on this account,

which is unheard of when it comes to checking accounts,

you're also going to get unlimited 1% cash back

on any purchases you make with that debit card

and you get four ATM reimbursements per month.

So, as I'm sure you can imagine, that $125 annual fee

begins to disappear as you factor in

that cash back incentive, as well as that 1.5% rate

that you're getting from that account.

So, let's go ahead and run through a cost benefit analysis

here of the M1 Plus checking account

and if you guys wanna run through with your own numbers,

they have a great calculator on their site

I'm gonna link up in the description below

where you can put in your own figures

and it will show you whether or not it makes sense for you

to have an M1 Spend account as far as the Plus version

if you're going to be making more in cash back

and a return from your interest income

than that $125 annual fee.

So, let's say for example you have somebody who has

a $5,000 carrying balance in their account,

over the course of a year that's the average amount

that they carry, well at the 1.5% APY

they're going to earn interest income of $75.

So, now moving on let's talk about the spending

that is going on within this account.

Let's say this person is doing $2,000 per month in spending

and that's honestly not a lot between your mortgage payment,

your car payment, and groceries,

that's typically what a lot of people are spending

and that is going to be yielding you

at $2,000 per month, 1% cash back, $240 per year.

Now I apologize, I did make a mistake here,

putting it at 75, the annual fee is 125,

so after you consider your interest income and the cash back

on a very small amount of spending,

and a low carrying balance, after that annual fee of 125

that is $190 per year as a benefit of what you would be

earning from having that M1 Plus account.

So, that being said, is this a good fit for you?

Is it not a good fit for you?

In my opinion it's a really good checking account

that they're offering here, probably the best one out there

that I have seen, but it may not be the right fit for you.

Number one let's talk about cash back from credit cards.

A lot of people like to play the rewards game there,

they like to do cash back on their purchases,

and you can probably find a better rate than 1% cash back

on your purchases if you go through a credit card.

But the thing is, do you trust yourself with credit cards?

Some people have really good self-control,

they pay their bill every month,

they pay nothing in interest,

and they play the credit card game,

and they make all of this cash back.

But some people may not have that level of self-control

or they're just afraid of credit cards

and they're stuck spending money

through a checking account earning nothing previously.

So, for people who may not wanna have a credit card,

but they still wanna earn some kind of cash back

on their purchases, this would be a perfect fit for them,

because there's no situation where you could be

paying interest because you're spending your own money,

you're not spending somebody else's money.

The second thing let's talk about here is Ally Bank.

A lot of people love Ally Bank,

I have a lot of my savings with them

because the online savings account is offering a 2.2% APY.

Now, why doesn't everyone just go dump

all of their money into that?

Well you can't have a debit card on that account

and you're limited to just six transfers per month

so you can't be moving money in and out

more than six times every single month.

So, you can't put all of your money in there

but a lot of us put a good chunk

of our money there of our savings.

Now, Ally Bank does offer

an online checking account as well,

but it's pretty lousy to be honest with you.

It's not nearly as bad as the traditional

brick and mortar banks offering .05%,

but Ally Bank offers you a 0.1% APY

if you're balance is under 15,000

and if your balance is over $15,000

that bumps up to a 0.6% APY.

But my question is, if you have over 15,000 in checking,

why wouldn't you just move that

to your Ally savings at 2.2%.

So, it doesn't really make sense to me.

The comparable Ally product here,

not really such a great option but still

it is a little bit better than what

your traditional bank is going to offer you.

So, there's two different strategies here that I like.

Number one, for people who are afraid of credit cards

or they don't trust themselves with having that potential

to spend money that they don't have,

this could be a great way for them to earn cash back,

without having to worry about going into debt

or trusting themselves with that large balance

they could put on their credit card.

Number two, another good option here

is for people who have a large balance.

They can put their money into an online savings account

like Ally Bank, but then they can move that money

into a checking account like this and earn that cash back.

So, I wouldn't leave a ton of money in here

because that 1.5% APY you can do better

with an Ally Bank account or another online bank.

But, for your general day to day spending,

this is honestly a pretty decent option

and most people based on their spending and their

carrying balance would offset that $125 annual fee.

But anyways guys, that wraps up the video here,

that is a review of the M1 Spend account.

Like I said, they haven't quite released it yet

but if you do want to sign up for the M1 Plus account,

they are offering a $50 for the first year

instead of 125 as an early bird discount.

That link is in the description below

if you're interested in checking it out.

Like I said, it's an affiliate link,

you guys don't have to use it if you don't want to

but it does help me out and helps to support my channel

and it allows me to make more videos like this.

But thank you guys so much for watching.

Let me know in the comments section below

what you think of this new checking account.

I would love to hear what you guys think

and if not I will see you in the next video.

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