Financial services company M1 Finance has announced an M1 owner’s card that is only available to M1 Plus members. The card offers some retailers up to 10% cash back and the opportunity to invest rewards in the brokerage portfolio. Currently, there is no information about when the card will be available in the application, but if you are interested, you can sign up for the waiting list. This is what we have ever known.
- The M1 Owner’s Card gives members the opportunity to earn up to 10% cash rewards and allows them to invest directly in brokers.
- The card’s reward hierarchy is based on where you shop, not on your spending category.
- You must own shares in that particular company to be eligible for compensation.
- Interested M1 Finance clients can join the waiting list for cards, but only for M1 Plus members.
About M1’s new owner’s card
In the credit card industry, in 2021, several new credit cards were launched by major credit card issuers, brokers, cryptocurrency exchanges and more.
One of the latest products is the M1 owner’s card. This card offers a flat rate of return of 1.5% cash back. This matches some of the best cashback credit cards on the market.
However, depending on where you shop, you can get up to 10% cash back. This card has three tiers of bonus rewards, 10%, 5% and 2.5%, and a long list of retailers, restaurants and other merchants in each tier. The complete list can be found on the owner’s card on the M1 landing page.
Here are some examples of each layer.
- 10%: AMC Theaters, GameStop, Netflix, Peloton, Wayfair
- 5%: American Airlines, Household Goods, Nike, Starbucks, TJ Maxx
- 2.5%: Airbnb, Apple, Costco, DoorDash, Taco Bell, Walmart
An interesting catch is that you must own a stake in that merchant in your M1 finance portfolio to be eligible for bonus rewards. Fortunately, M1 Finance offers fractional shares, so you don’t have to buy all the shares of each company to get paid.
All cashback earned on your card can be automatically invested in your M1 finance portfolio.
One of the major drawbacks is that you need to be an M1 Plus member to get your card approved. Admission is free for the first year, but is available for $ 125 a year thereafter. Membership also offers benefits other than credit cards, but you need to run the number to determine if it’s worth the cost.
If you decide to join M1 Plus and get your card, removing your membership will incur an annual fee of $ 95 for your card, which may not be worth it.
Is the M1 Owner’s Card Perfect for You?
Owner’s Cards provide a great opportunity to earn big rewards on purchase if your favorite retailer is on the list. However, the price tag on the card (M1 Plus $ 125 membership fee or $ 95 annual credit card fee) is expensive.
If you are already an M1 Plus member and you are already enjoying the full benefits of your membership, you can add a credit card to supplement your regular investment contributions. However, if you are not an M1 Plus member, we recommend that you review your membership benefits to determine if your subscription costs are worth it.
Also, keep in mind that you will need to hold shares in a portfolio bonus retailer to earn additional cashback. Consider your investment strategy to determine if it will benefit your credit card cashback rewards.
If you are interested in applying for a card, you can join the waiting list to apply for regular renewals and early access.