You may want to quickly transfer funds from your bank account to an investment account to take advantage of an investment opportunity. The transfer process from the bank may take several days and investors may want to have the option of instant deposits.
M1 Finance does not offer an instant deposit option. This is because their product is better designed for the long-term investor. M1 Finance offers the option of automation. They have made it easy to automate your transfer of funds as a one-off transfer or as a recurring weekly, bi-weekly or monthly transfer.
In addition, if you are an M1 Plus account holder with an open M1 Spend account, you have the ‘Smart Transfer’ option, where you can trigger the transfer of funds by presetting a cash balance threshold.
M1 Finance has made it easier and seamless for investors to move money for investment. With this level of automation, you may reduce the need for ‘instant deposit’, and instead, you can schedule your deposits and investments. In this article, we’ll look at the different options that M1 Finance offers that make the moving of funds faster and easier.
How to Deposit money into an M1 account?
There are several ways to deposit funds into your M1 Account.
1. One-Time transfer
Whether it’s your first time to deposit into your M1 Finance account or you want to deposit additional funds, the process is the same.
For first-time deposits, the minimum amount for individual accounts is $100 and for retirement accounts $500.
The minimum deposit you can make on the subsequent deposits is $10.
The One-time transfer option enables you to do a one-off funds transfer to the M1 Finance account that you choose.
When the transfer is from an external bank account, it may take some days to complete the moving of funds. Once the deposit is initiated, however, M1 Finance will enable you to invest those funds one business day after you initiate the deposit, even though the transfer from the bank has not been finalized.
This is important to note so that you ensure you maintain enough funds in your bank account until the bank completes the transfer process.
2. Recurring Deposit
With M1 Finance you can automate and schedule the amount you want to deposit. You can choose to automate a transfer every week, bi-weekly, or monthly.
You can as well automate the investment so that the funds are distributed to whichever assets or investment pies you choose.
You won’t have to deal with the hustle of remembering to transfer funds, making your transfer and investment process consistent and efficient.
3. Wire Transfer
Once you have set up your bank connections on your M1 account, you can do a wire funds transfer into your M1 Invest account from the same bank.
M1 Finance has given their wire transfer details on their website. Always confirm that the name you have on your M1 invest account matches the one you use for the wire transfer.
4. Direct deposit
This option is available to M1 Spend account holders.
On the ‘Direct Deposit’ tab section, you can find your bank details and routing number.
As you deposit your paycheck into your M1 Spend account you can transfer it to your investment account as you desire.
5. Smart Transfer
M1 Finance has devised a system in which you can automate the transfer of funds between your M1 accounts by setting thresholds on cash balances. Once these balances are reached it prompts the transfer of funds.
The Smart Transfer service is available to M1 Plus account holders only, and who have an open Spend account.
There are three ways you can automate your smart transfers and this is how it works:
- You can set up a maximum amount for your cash balance on your M1 Spend account. When the funds exceed this amount there will be an automatic transfer of the excess funds to another M1 Invest account. This automation is referred to as the M1 Spend overbalance.
- Alternatively, you could set a maximum cash balance on your M1 Invest account so that any funds above your set threshold will be automatically channeled to another M1 account. This automation is the M1 Invest cash overbalance.
- The last option is to set up your M1 Spend account with a minimum threshold. Any time the funds go below your set threshold, money will automatically be transferred into the M1 Spend account to refill it. This is the M1 Spend underbalance.
Another brilliant feature of the ‘Smart Transfer’ is that you can automate the transfers to be done between the M1 Spend plus account, the IRA account, and the taxable portfolio.
It would work in this way: You set a maximum cash balance for your M1 Spend checking account. Once the cash in that account reaches your chosen maximum, the excess will then be transferred to your IRA account. When the IRA Investment has reached its limit for the year, the rest of the funds will be transferred to the Taxable portfolio.
You could also choose to automate the transfers between your M1 pies. As you invest, you know which pie you would like to generate more income from and how fast you want to grow its earnings. You can automate transfer from the lower priority pies to your key pies by setting threshold cash balances for each pie.
How long does it take for my deposits to reflect in my M1 account?
When transferring funds from an external bank account to an M1 Spend account, it can take up to 3 business days to reflect in the account.
Transferring funds from an external bank account to a taxable or IRA account takes one business day.
The transfer from an M1 Spend account to a taxable or IRA account is complete by the next business day.
If the transfer is between M1 accounts and is not automated, it will take 3-4 Business days.
The quickest deposit option with M1 Finance is through their Smart transfer option which is instantaneous.
Frequent Investors or day traders are mostly in need of instant deposit options because they may be looking to make a quick gain from a price change on an asset.
Long-term investors may need an instant deposit option when they’ve forgotten to do their transfers for ongoing investment. A long-term investor, however, is looking for convenient ways to keep investing so they can grow their wealth consistently over a long period.
M1 Finance is better suited for long-term investors and they seem to have put more effort into helping the long-term investor achieve their goals.
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