Update (Nov. 1, 2021) – M1 Finance is releasing applications for the Owner’s Rewards Card by M1 to the general public today after processing an 80,000-person waitlist. Successful applicants can expect to receive their cards in early November.
M1 Finance is a free investing app. It currently offers a $30 bonus for new users. Now the company is getting into the credit card game with the launch of the Owner’s Rewards Card by M1.
One of the features that sets this credit card apart, is that cardholders can earn up to 10% cash back when they shop at select companies whose stock they own. Some of the best-known companies in the world are eligible, such as Amazon (2.5% back), Target (2.5% back), Starbucks (5% back), Netflix (10% back) etc. More will be announced in the coming weeks. Let’s get into this Owner’s Rewards Card by M1 review, and see if it makes sense for you.
The new Owner’s Rewards Card by M1 brings the card holder’s finances together in one place, while helping those card holders grow and maximize their wealth with everyday transactions. The Owner’s Rewards Card by M1 gives M1 Plus clients even greater control and simplicity when it comes to their financial well-being, with the following benefits:
The card has a sleek metal design. You can use the physical card to pay, or pay with tap-to-pay through Apple Pay and Google Pay for a contactless shopping experience. The Owner’s Rewards Card by M1 is a credit card powered by Deserve and issued by Celtic Bank, a Utah-Chartered Industrial Bank, Member FDIC.
Currently there’s no signup bonus for the Owner’s Rewards Card by M1.
An M1 representative reached out to inform me that there is a welcome bonus on the card.
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).
You can join the waitlist here.
The Owner’s Rewards Card by M1 comes with a $95 annual fee. The fee is waived for Plus members who are approved for the Credit Card.
M1 Plus offers exclusive features and rewards and costs $125 per year. But if you sign up for a new M1 Invest account, you get a $50 bonus and a free year of M1 Plus.
The Owner’s Rewards Card by M1 earns the following rates:
Using M1 automation, you can reinvest your rewards in your portfolio for continued growth.
With a 1.5% earning rate on most purchases and a $95 annual fee, this card will not be very exciting for most readers. It gets better if you are already part of M1 Finance and especially if you have M1 Plus which waives the annual fee. It’s also interesting that they offer increased cashback at companies whose stock you own. But the list of those companies is very short for now.
Another feature of this card is that it makes is easier to invest. M1 will automatically invest the cash back for you. That might not be ideal for most people, but I guess it does encourage more investing in the long run, if you are not an active investor. However, you would be better of using a 2% cash back credit card and then investing that cash with M1 Finance or whatever brokerage that you prefer.
I hope they offer some kind of welcome bonus, or add more merchants with increased cash back rates to make this product more appealing.