The M1 Finance Owner’s Rewards Visa Signature credit card is a potentially high earner with small hoops to jump through. It earns a lot of cash back in a lot of categories, although the value will vary from person to person. In November 2022, they made some changes which we’ll take into account below.
M1 Finance is a “super app” which combines investing with a checking account and other perks. They aim to be a bank-within-an-app which can potentially replace a traditional banking relationship. This credit card is their latest shot at the traditional financial system.
FEATURES AT A GLANCE
- No annual fee (previously waived with M1+ membership – after a free trial, it’s $125 per year)
- No foreign transaction fees
- 10% cash back with 11 companies (must have M1+ membership to unlock this)
- 5% cash back with 36 other companies (must have M1+ membership to unlock this)
- 2.5% cash back with 32 other companies (must have M1+ membership to unlock this)
- 1.5% cash back on everything else (applies to all categories if not part of M1+)
- Metal card
SIGN UP BONUS
As of November 2022, there isn’t a sign-up bonus for this card.
In January 2022, you could earn a $300 statement credit by spending $4,000 within 90 days. This is a 7.5% return, which is somewhat low for a sign-up bonus. It’s still worth considering since it’s better than M1’s previous card bonus. (At launch, according to an M1 representative, the credit card sign-up bonus was “Introductory offer: Card holders will receive 3% cash back on all purchases within the first 90 days of card activation if they spend $5K or more (so 1.5% baseline rewards goes to 3% and 2.5% rewards go to 3% if the user spends at least $5K in the first 90 days).” If subject to the $200 monthly cash back limit, that was a $600 cash back maximum for the first 90 days. If you spent $10,000 in 3 months then you’d earn a mere $300 bonus.)
If you don’t already have a free M1 Investment account, which is required, it may have its own cash sign-up bonus: “Deposit $1,000 or more within two weeks of opening your new M1 Invest account and get a cash bonus of $30-$500 to that account. That’s it! Easy as Pie. Consider it our welcome gift to you. Keep an eye out for your bonus payout on January 31, 2022 “ M1 Finance also has a $100 bonus for opening a checking account with them (this offer expires 3/31/22).
Referral bonuses are currently worth up to $50, so first check with your friends who already use M1.
OTHER BENEFITS OF THE M1 OWNER’S REWARDS CARD
- Visa Signature benefits, including:
- Travel and Emergency Assistance Services
- 24/7 Concierge
- Roadside Dispatch
- Zero Liability Policy
- Can automatically re-invest rewards into eligible investment accounts
- Contactless card with mobile wallet compatibility
- M1+ benefits include high-APY checking/savings accounts with limited ATM reimbursements and debit card cash back
RESTRICTIONS AND CREDIT SCORE
Recommended credit score: 670+
An M1+ account was required to apply for the card, then they lifted this restriction in February 2022. “Plus” membership has a free trial of 3-12 months, then it has a $125 annual fee. You’ll have to make sure your level of spending outstrips the annual fees. See the next section for some math.
The card used to require having at least a fractional share in the list of companies to earn cash back (minimum $0.01 invested). This requirement was removed in November 2022. M1 said “From Apple to Amazon, Walmart to Target, Spotify to Netflix, Peloton to Popeyes, Victoria’s Secret to Converse and so many more—if they’re in your eligible portfolio, you’ll get rewarded when you spend there.” The easy way to do this is to add a “pie” as a small percentage of your portfolio. Some M1 members already set up the pies, since ETFs don’t count:
- All: https://m1.finance/bnbh1frx-Vgg (may need updates since M1 changes categories)
- All, equal-weight: https://m1.finance/TFRuXvLY7NhD (may need updates since M1 changes categories)
There’s a maximum of $200 cash back per calendar month. If you exclusively use 10% categories, that’s a maximum of $2,000 spent each month (a $24,000 annual spending limit and $2,400 annual cash back limit). Mixing-and-matching with cash back categories will effectively raise the spending limits. In either case, cash back is not unlimited. We don’t know if cash back expires, but since rewards can be automatically reinvested, it doesn’t matter.
You can’t add authorized users to this card.
MAXIMIZING REWARDS WITH THE M1 OWNER’S REWARDS CARD
10% category as of March 2022:
- Adobe, AMC, Dropbox, Dollar General, Lululemon, Netflix, Peloton, Stitch Fix, Spotify, Tesla, Ulta,
5% category as of March 2022:
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- American Airlines, Amoco, BP, Chewy, Chipotle, Chevron, Texaco, Delta, Domino’s, Etsy, Reverb, FedEx, GameStop, JetBlue, Southwest, McDonald’s, Converse, Nike, Purple, Burger King, Popeye’s, Tim Horton’s, Starbucks, HomeGoods, HomeSense, Marshalls, Sierra, TJ Maxx, United Airlines, UPS, Wayfair, Exxon, Mobil, KFC, Pizza Hut, Taco Bell
- Gas: Amoco, BP, Chevron, Exxon, Mobil, Texaco
- Airlines: American Airlines, Delta, JetBlue, Southwest, United Airlines
- Fast food: Burger King, Chipotle, Domino’s, KFC, McDonald’s, Pizza Hut, Popeye’s, Starbucks, Taco Bell, Tim Horton’s
- Retail: Chewy, Converse, Etsy/Reverb, GameStop, Nike, Purple, HomeGoods, HomeSense, Marshalls, Sierra, TJ Maxx, Wayfair
- Shipping: FedEx, UPS
- American Airlines, Amoco, BP, Chewy, Chipotle, Chevron, Texaco, Delta, Domino’s, Etsy, Reverb, FedEx, GameStop, JetBlue, Southwest, McDonald’s, Converse, Nike, Purple, Burger King, Popeye’s, Tim Horton’s, Starbucks, HomeGoods, HomeSense, Marshalls, Sierra, TJ Maxx, United Airlines, UPS, Wayfair, Exxon, Mobil, KFC, Pizza Hut, Taco Bell
Full list of rewards categories: https://m1.com/owners-rewards/
To get the most out of the M1 Owner’s Rewards card, you’ll need to spend a fair amount of money in these categories. The 2.5% category isn’t that exciting, since other credit cards may give 3% to 5% with most of the listed companies. For example, Amazon and Target have 5% cards compared to M1’s 2.5%. Some people may enjoy the added convenience of M1 though. It’s one card which gives bonus cash back at 50+ places, instead of one card which gives a bonus at one place. This simplifies some wallets.
If you spend $1,800 per year in 10% categories, you’ll earn $180 cash back ($55 after the M1 annual fee). This beats no-fee 3% cards by $1.
If you spend $7,000 per year in 5% categories, you’ll earn $350 cash back ($225 after the M1 annual fee). This beats no-fee 3% cards by $15.
With full value from the M1+ membership, you don’t need to use the credit card as much. M1+ includes a no-fee debit card (which earns 1% cash back), no-fee checking account (3% APY as of 11/22/22), 1.5% APR reduction on Borrow, and more. YMMV on whether the $125 M1+ membership is worthwhile. Borrowing at least $10,000 should make M1+ worthwhile, since it effectively reduces the APR below their standard rate. Keep in mind that an M1 Invest balance has to be at least $28,600 to do this (lower, if you borrow less).
Example spending in the 10% category, as of February 2022:
- Adobe Creative Suite – $600 for a one-year subscription
- AMC Plus – $9 per month ($108 per year; available through Amazon Prime, Roku, Apple TV, and more)
- Dropbox Plus – $120 per year (billed annually)
- GameStop PowerUp Rewards – $15 per year
- Netflix Premium – $18 per month ($216 per year)
- Peloton All-Access – $39 per month ($468 per year)
- Spotify Premium Individual – $10 per month ($120 per year)
Combined, this is $1,647 and earns about $165 cashback (not including taxes). About $40 after the M1+ annual fee, which is $7 more than paying for these subscriptions with a 2% cash back card, or $9 less than using a 3% card. This example of spending is no longer applicable, but we’re leaving the information here for historical purposes.
Note: Gift card purchases are excluded from earning cash back, according to M1’s terms and conditions.
ALTERNATIVES TO THE M1 OWNER’S REWARDS
Travel cards like the Chase Sapphire Reserve or American Express Platinum can earn more than 5% cash back on airfare. Also note that you can purchase discounted gift cards to airlines or hotels. This has the potential to be more profitable than cash back credit cards.
Other than that, it isn’t a straightforward task to list alternative credit cards. Everyone will view the cash back categories differently due to personal spending habits. Wherever you spend the most money, look to see if they have their own credit card. It might be a better deal. For purchases made with a mobile wallet, the U.S. Bank Altitude Reserve is likely the best alternative.
Business owners may enjoy the 5% cash back with UPS, Fedex, Adobe, and Dropbox. Other people will like the bonus cash back for Bath & Body Works, Victoria’s Secret, Lululemon, Netflix, Spotify, Etsy, Starbucks, etc.
On 3/31/2022, M1 changed its categories. It removed or moved a bunch of options, and added the potential for earning 5% cash back on gas. A number of cards already earn 4-5% cash back on gas, but this is decent overall. It makes the card more useful for everyday spending.
The Alliant Cashback Visa Signature is a no-fee card which earns 2.5% cash back on everything. This is a direct competitor for M1’s card outside of 5% and 10% categories. For other general-use cards, any of the best everyday cards will work. There are a few options for earning more than 2% cash back on all purchases. Anyone who isn’t a M1+ member has no reason to consider M1’s credit card.
CONCLUSION
The value of the M1 Finance Owner’s Rewards depends a lot on personal habits. It’s a great card for some people, and underwhelming for others. Its utility drops fast for people who won’t use any of the 10% categories. M1 has a decent cash back rate only with publicly-traded companies. The main downside (aside from the annual cost of M1+) is that it earns cash back in often-optional places. It doesn’t give 5+% cash back for essentials like groceries or public transit. Its 2.5% cash back rate isn’t the worst, and some people can benefit, but other cards can be better in that category.
We also don’t know if these categories are intended to be permanent, or if future changes are planned. M1 changed the cash back rates at least once already. If this changes every 3-4 months, that may drive people away. Some people aren’t fond of rotating category cards because it’s more things to keep track of.
M1 removed sign-up bonuses from their card in late 2022, further decreasing its value.
In theory, the M1 credit card can earn more cash back than other credit cards. It’s the only card on the market earning 5+% cash back in many categories. M1 doesn’t have a clear competitor here, and for that reason, it’s worth a look. However, you must be an M1+ member to get any real value here. If you don’t want to pay the $125 annual fee, any “everyday” card will be a better deal.
We rate the M1 card 3 out of 5 stars. ⭐⭐⭐
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Note: This review was last updated in November 2022. Details may have changed since then. Please do your own research where applicable, to ensure you’re getting the best deal. Or contact us directly for personalized consulting services!