M1 High-Yield Savings Account vs CD (2026) — When Plus Subscription Yields Beat Locked Rates
Quick take: M1 Finance's High-Yield Savings Account pays a tiered APY: ~3.30% for standard M1 customers, ~5.00% for M1 Plus subscribers (paid annual fee). FDIC coverage via partner Lincoln Savings Bank up to ~$3.75M. M1 does NOT offer traditional CDs — for locked rates you need an external bank or a MYGA.
Current rates (M1 Finance, as of June 2026)
| Term | APY | Minimum |
|---|---|---|
| M1 HYSA (Standard tier) | ~3.30% APY | $100 |
| M1 HYSA (M1 Plus, $95/year) | ~5.00% APY | $100 |
| (Comparison) Marcus Online Savings (no fee) | ~3.85% APY | $0 |
| (Comparison) Ally 11-Mo No-Penalty CD | ~4.20% APY locked | $0 |
| (Comparison) BMO Alto 1-year CD | ~4.75% APY locked | $0 |
| (Comparison) BrioDirect 1-year CD | ~4.85% APY locked | $500 |
| (Comparison) Top A-rated 5-year MYGA | ~5.65% APY locked (tax-deferred) | $25K+ typical |
Rates verified against M1 Finance's public rate sheet on the publication date and change frequently. Confirm current APYs directly with the bank before opening an account.
How M1's HYSA works
M1 Finance is a fintech offering a combined investment, banking, and lending platform. The High-Yield Savings Account is a sweep product where deposits are held at partner banks including Lincoln Savings Bank (FDIC cert #6905). FDIC coverage scales with the partner-bank network, currently up to ~$3.75 million per M1 account.
The tiered APY structure is the key differentiator. Standard M1 customers earn ~3.30% APY on the HYSA. M1 Plus subscribers (~$95/year) earn ~5.00% APY — one of the highest published HYSA rates in the US market when the subscription cost is netted out at meaningful balances.
Subscription math: The $95/year M1 Plus fee is recouped when the rate boost (170 bps) is applied to ~$5,600 of balance. Below that balance, the subscription isn't economic for the HYSA alone. M1 Plus also includes investment-platform features (additional trading windows, lower margin rates) that may justify the fee independently.
When M1 HYSA beats CDs
For M1 Plus subscribers at balances above ~$10K, the ~5.00% APY HYSA beats Ally's 11-Month No-Penalty CD (4.20%) and approaches BMO Alto's 1-year CD (4.75%) — with full liquidity and no maturity rollover risk. It's a genuinely competitive product within the M1 Plus ecosystem.
For standard (non-Plus) customers at 3.30%, M1's HYSA loses to Marcus (3.85%) and most other HYSAs. The subscription is the leverage; without it, M1's HYSA is uncompetitive.
What we like about M1 Finance CDs
- M1 Plus tier APY (~5.00%) is among the highest published HYSA rates in 2026
- FDIC coverage up to ~$3.75M via partner-bank sweep
- Same M1 platform supports automated investing, margin lending, and HYSA
- Plus subscription also includes investment-platform features (lower margin, more trading windows)
- $100 minimum is reasonable
What we don't
- Variable rate — M1 can lower the APY at any time
- Standard tier (3.30%) is uncompetitive without the $95/year M1 Plus subscription
- Not a CD — no rate lock, no maturity guarantee
- Subscription math only works at balances above ~$5,600 (HYSA alone)
- M1 is not a chartered bank — partner-bank sweep adds operational complexity
How M1 Finance CDs compare vs peers
If this rate is on your shortlist, you should also be pricing:
| Competitor | Term | APY |
|---|---|---|
| Wealthfront Cash Account (sweep) | Variable, $8M FDIC | ~4.00% APY |
| Marcus Online Savings (no fee) | Variable HYSA | ~3.85% APY |
| Ally 11-Month No-Penalty CD | 11-mo with flex | ~4.20% APY |
| BMO Alto 1-year CD | 1-year locked | ~4.75% APY |
| Top A-rated 5-year MYGA | 5-year locked, tax-deferred | ~5.65% APY |
Internal benchmarks: Best 5-Year CD Rates 2026 · Best 1-Year CD Rates 2026 · Online vs Brick-and-Mortar CDs.
When a MYGA beats this M1 Finance CD
Even M1 Plus's class-leading 5.00% HYSA loses to a 5-year MYGA when locked-rate certainty matters. Compare $250,000 over 5 years:
- M1 Plus HYSA at variable 5.00% (assuming rate holds): $250,000 grows to $319,070 (taxable annually) minus $475 in cumulative M1 Plus fees
- M1 Plus HYSA if rate falls to 3.50% by year 2 (Fed cuts): $250,000 grows to ~$300,500 net of fees
- A-rated 5-yr MYGA at 5.65% locked: $250,000 grows to $329,251 (tax-deferred)
- Realistic falling-rate M1 vs MYGA delta: $28,751 in favor of the MYGA
M1 Plus HYSA is one of the best variable-rate yields available. For long-term retirement money that you genuinely won't need for 5+ years, the locked MYGA still wins because the M1 rate is not guaranteed and will likely fall when the Fed cuts.
M1 Finance CD FAQ
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Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple A-rated carriers
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Bottom line
M1 Plus HYSA at ~5.00% APY is one of the highest published US HYSA rates — competitive even with standard 1-year CDs. The catch is the $95/year subscription and the variable nature of the rate. For locked-rate certainty on 1-year money, BMO Alto's 4.75% standard CD edges close without a subscription. For 5-year retirement money, a top-rated MYGA at 5.65% locked typically wins because the M1 rate is not guaranteed and will likely fall in a cutting cycle.
About Hans Goldstein: Independent retirement income specialist. CA Life License #4163961. NPN #20602398. Reviews 30+ carriers and tracks bank CD rates weekly. Phone: 213-414-2808. Email: hans@goldsteinco.net.
Disclosure
This review reflects publicly available bank rate sheets and approximate APYs as of the date stated above. CD rates change frequently — sometimes weekly — and the rates above may be stale by the time you read this. Always confirm current rates and terms against the bank's current rate sheet and disclosure documents before opening an account. FDIC insurance covers $250,000 per depositor, per insured bank, per ownership category; deposits above that amount at a single bank are not insured. This article is general information for educational purposes; it is not personalized financial advice, a solicitation, or an offer of any specific product. Hans Goldstein is an independent licensed insurance producer (NPN 20602398) and is not a bank, deposit broker, or registered investment adviser. CDs are bank deposit products and are not sold by insurance producers; references to CDs are for comparison context only. MYGAs (multi-year guaranteed annuities) are insurance contracts, subject to surrender charges and state guaranty fund coverage rather than FDIC. Early withdrawal of a CD before the maturity date typically results in a penalty that may exceed interest earned. Always read the actual deposit account agreement and consult a licensed advisor before making material financial decisions.