Digital banking and investment platform M1 Finance is set to launch M1 Spend, a checking account and debit card that can integrate in the current M1 application, allowing customers to directly deposit paychecks, pay bills from the account and spend money with a Visa debit card.
Image: M1 Finance app and upcoming Visa debit card. Photo: Courtesy of M1 Finance.
M1 Finance stated that the M1 Spend card will be launched in few months.
The company is planning to launch a premium version which will feature 1.5% APY interest and 1% cash back on all purchases through the debit card.
The M1 Spend will come standard with no annual fee and be available to all the users. There are no monthly management fees, no minimums and the company claims that it will reimburse one ATM withdrawal fee each month.
The launch of M1 Spend is in line with the company’s vision to create a new financial solution that can help customers to manage money in a more personal, convenient and low cost way.
M1 Finance founder and CEO Brian Barnes said: “We imagined an account where you can easily receive and spend money, much like you do with current checking accounts. But unlike current checking accounts, your money is not confined to sit idle as ‘cash,’ earning next to nothing. Instead, excess money is automatically swept into investments to capture its full potential.”
The new account is touted to offer customers complete control over their investments. Customers can move cash to their investment portfolio.
Barnes continued saying: “You are empowered to use your money as an asset to back up a flexible, ultra-low-cost line of credit so you can tap into the liquidity of your investments without costly tax consequences.”
Accounts with such capabilities are claimed to become standard in the future. The company has launched two of three pillars in M1. M1 Invest allows customers to automatically invest in a custom portfolio for free. M1 Borrow lets them tap into a flexible-use and low-cost line of credit. When launched, M1 Spend will complete the foundation of new money management account.
M1 Spend is Federal Deposit Insurance Corporation (FDIC)-insured account, as the money will be held with Lincoln Savings Bank, Member FDIC. This structure offers insurance protection for up to $250,000 and offers flexibility in transacting through the account.