Unheard of! 0% interest when borrowing money with M1 Borrow promotion, happening through June 2021. Join the consumer trend for using resources available for investing or borrowing money outside of traditional name brand banks.
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What is M1 Finance
M1 Finance is a smart money management platform where users easily manage and track investments, spending or borrowing money. Its free to use with the option of additional premium services (for which there is a current promotion to try out for free for 1yr, and renews afterwards for $125/yr).
M1 offers an individual, joint brokerage accounts, checking, and all the other basic services of investment banking except that it is automated. Meaning that you designate how you want to save or invest, and it automatically follows up. Of course, you can also manually control things yourself.
The current promotion is a limited time offer that lets you borrow up to $5000 with 0% interest.
How M1 Borrow Promotion Works
M1 Borrow is basically a flexible line of credit at a great low rate. Its available to M1 clients who have a portfolio with at least $5000 to borrow up to 35% of the portfolio’s total value at a 0% interest rate.
Don’t have one so you don’t qualify? Weigh your options and understand it first to consider if its worth starting one.
M1 Borrow is kind of a HELOC, but easier to process and cheaper to pay back. A HELOC is where you borrow money against the equity of your house. In the case of M1 Borrow , you borrow against your portfolio. A HELOC is a Home Equity Line Of Credit.
However, different from a HELOC, M1 Borrow is hassle free without all the extra paper work to get money fast, and you pay less interest on what you borrow. With the current promotion, I don’t think 0% can be beat.
Additionally, The M1 Borrow line of credit is also attractive as there is no payment schedule, unlike a HELOC. However, If you have a HELOC already, you can use M1 Borrow to pay off your existing HELOC and save money.
I cited the HELOC as a point of comparison. Regardless, the downside of M1 Borrow is that in order to get this promotion you need an M1 portfolio. However, M1 is running a different promotion where you get $30 bonus when you start saving with M1. (details here). Nonetheless, should you get one?
While the bonus is a nice extra perk when you open an account and fund $1000 over a given time, the bottom line is all about what the platform does for you. Given that M1 Finance is an all-around money management system, with the option to scale up to M1 Plus (which puts your savings in autopilot for investing and growing your money), the platform is great for those of us who want to grow our money but don’t have the time or knowledge needed to make smart investments.
M1 Finance Promotions:
- Try M1 Plus for free for 1 year. This promotion ends June 30th, 2021.
- $30 to start saving with M1 Finance
- Transfer existing brokers to M1 get up to $4000 through 5/31/21.
You also get free investing, high yield checking, low rate borrowing, automation, and optimization of your savings to increase your earnings.
Who would benefit from M1 Borrow
The M1 Borrow program benefits the consumer who searches for savings out of the traditional financial school of thought that big banks are the only way to save money. Its for people who venture into investing and view money as a commodity that can be leveraged to a certain degree and can be used to make it work for the consumer.
Examples of how to use M1 Borrow to your advantage
- You can use M1 Borrow to pay off your existing HELOC
- The low interest rate is attractive for getting cash to pay for college tuition instead of a student loan (which have ridiculously high interest rates which are in some cases higher than mortgage rates, but that’s another post). Or, you can pay off an existing student loan and end up saving money on the interest.
- Borrow small amount to pay for home renovations , or purchase new furniture, or even buy a used car for you or your college kiddo without having to pay a typical high loan interest fee.
- The M1 Borrow promotion is great for traders looking to increase their earning potential as the minimum to amount to use the borrowing service has been lowered to $5000 from $10,000.
- Borrow the money to pay off an existing high interest loan.
- No limitations on what you are using the money for. Use the money for either business or personal matters.
What you use it for is simply your business, and there are a lot of possibilities. Regardless, you pay only on what you borrow. In this sense, its a safety cushion for emergencies as you use the money when you need it. Because of this promotion, now its a good time to use the money though.
Is M1 Borrow Worth it?
To figure out if M1 Borrow worth it for you, basically, ask yourself if you would benefit from a cash influx without a hefty interest rate to purchase or pay off something. As this offer is for M1 Finance users, ask yourself if you would benefit from a service that is an all-in-one financial management platform.
Consider too, that just like every Investment service, there are risks associated with the trading industry. Nothing is ever a guarantee, so no investment company guarantees anything because no one knows what is going to happen in the future.
As an alternative to these insecurities however, there is always the option for traditional savings which pay less than one percent on your savings and earn very little cash back unfortunately.
When doing any kind of money investments, also check the company’s finance registration records to ensure they’re legit. How is your money protected?
In the case of M1 Finance, they’re based out of the US, and is located in Chicago, Illinois. They’re also a registered broker/dealer with FINRA (CRD #281242) and a member of SIPC (Securities Investor Protection Corporation). M1 Spend and M1 Plus accounts are FDIC insured up to $250,000 and further insured through Lincoln Savings Bank. Here’s the Broker Check screenshot:
What reviews say about M1 Borrow
A quick screenshot of M1 Finance app reviews (below) shows people highly rate this company. While most reviewers are happy with it, the unhappy reviews relate to customer service response times. The happy reviewers mostly comment they’ve made money and the app is easy to use. (This information is based on the time I took the screenshot from the app store).
It seems that there is an increase number of interest in line of credit and home line of credit. I hope this post helps you find and opportunity to get extra savings when weighing your options to save money.
Happy savings, TaLis
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