M1 Finance reveals Owners Rewards credit card
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Credit cards are generally known to offer travel rewards or cash back rewards as the main incentive for consumers to use them. In recent months, earning from cryptocurrency has become a new reward system for emerging credit cards.
But what if you could spend the money on your favorite brands where you own stocks and be rewarded with a bonus? This was announced Wednesday M1 Finance, investment and banking platform.
Select analyzed the card itself, what you need to know to apply for the owners reward card and who this card corresponds to.
Strengths of the Owners Rewards Card by M1
The M1 Owners Rewards Card is (potentially) a no annual fee credit card where you can earn up to 10% cash back when spending with the brands you have invested in through M1 Finance including Amazon, Target, Starbucks , Delta Air Lines, Tesla, Netflix and more. Dozens more companies are planning to be added to the list in the near future, based on the investments most popular among M1 users.
By holding fractional shares of the companies below in your M1 brokerage account, you will benefit from the following cash back rates:
The card also provides a solid cash back rate on purchases made outside of your respective stocks, as it offers 1.5% cash back on all purchases. However, you can only receive a maximum of $ 20 in cash back per transaction.
The cash back earned can be automated to be reinvested in your wallet, known as âPiesâ. The pie you set up for your wallet can automatically recover your earned money after each statement cycle and allocate funds accordingly, making credit card income like a long-term passive investment.
Ben Reid, chief executive of credit cards at M1, echoed M1’s philosophy as an investment platform rather than day trading. And with his credit card, “you can get special benefits for owning” your favorite businesses.
The card comes with several other features, including:
Apply for the Owner’s Rewards Card by M1
To benefit from the card, and also to maximize the benefits, there are a few prerequisites that must be met:
- This card is reserved for M1 Finance members. Membership is free and the M1 Finance app is free to download for iOS and Android devices. The app is rated 4.5 and 4.6 stars respectively.
- You must become a member of M1 Plus, their exclusive financial services subscription product. This includes a wide variety of features including: $ 0 trading commissions, digital verification with 1% APY, and discounted borrowing terms. The fee for M1 Plus is $ 125 per year, but the first year is waived.
- If you upgrade to the M1 Plus plan, you will be charged an annual fee of $ 95 to hold the M1 Owner’s Rewards card.
Once this is done, you can enter your email to join the credit card waiting list. According to Reid, there were approximately 55,000 members on the waiting list as of July 28.
The map is expected to be made public in early fall 2021.
Who is this card a good match for?
The M1 Owners Rewards Card is a great product for someone who actively buys and owns stocks in the largest companies listed on the New York Stock Exchange, while regularly spending money on them. So if you are a regular visitor and investor of Starbucks, or frequently visit Tesla charging stations while holding stocks, M1’s Owners Rewards card may make sense.
Additionally, if you are looking for an all-in-one financial platform with services like digital banking, investing, credit, lending, etc. M1 can provide you with these tools.
Credit cards for investors
However, the M1 credit card is not the only card that earns rewards for investing in a brokerage account. None of the cards below will reward you based on your actions, but they do earn rewards on daily purchases that can be transferred to a brokerage account.
Loyalty: Visa SignatureÂ® FidelityÂ® Rewards card
Charles Schwab: American Express Platinum CardÂ® for Schwab
Morgan Stanley: The American Express Platinum CardÂ® Exclusively for Morgan Stanley
TD Ameritrade: TD Ameritrade Customer Rewards Card
You can also grab the cash back from the best cash back credit cards, transfer it to a brokerage account, and invest it in any stocks, bonds, or index funds of your choice.
At the end of the line
The M1 Owners Rewards Card is a unique card because it rewards you for spending money with companies that you own a part of. You save on your purchases, support businesses in which you have a financial interest, and increase your stake along the way. It’s a solid three-pronged approach to continue to build wealth.
However, keep in mind that you will need to pay the annual fee of $ 125 after the first year for M1 Plus to hold this credit card. If you can justify the annual fee, the card can be a great addition to your wallet.
Editorial note: Any opinions, analysis, criticism or recommendations expressed in this article are the sole responsibility of the editorial staff of Select and have not been reviewed, endorsed or otherwise approved by any third party.