4 ms·
Very intriguing. Thanks for sharing. Sounds like what M1 offers is indeed very close to the “hybrid bank account” described by OP. Official statements from the
by divbzero 7y ago
Very intriguing. Thanks for sharing.
Sounds like what M1 offers is indeed very close to the “hybrid bank account” described by OP. Official statements from their website [1] reveal their hybrid nature:
> Securities in M1 Invest accounts are insured up to $500,000 by the
SIPC.
> M1 Spend checking accounts may be insured up to $250,000 by the
FDIC.
[1]: https://www.m1finance.com/ https://www.m1finance.com/
- patio11 7y agoMost of the top discount brokers either own a bank or have a sweep arrangement with banks, specifically to get FDIC insurance for large cash balances, which you do not want to have. The specific things M1 offers that make them close to this blog post are a) low margin rates (3~3.25%) and b) autoinvestment of deposits (including payroll deposits), which is grumblegrumble rarer than you'd guess.