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Credit Cards

M1 Finance reveals new credit card that allows consumers to earn bonus cash back with companies they own stock in

The Owners Rewards Card by M1 launched Wednesday, making saving on purchases and investing simpler.

krisanapong detraphiphat | Moment | Getty Images

Credit cards are typically known for offering travel rewards or cash back as their main incentive for consumers to use them. In recent months, earning cryptocurrency has become a new reward system for emerging credit cards.

But what if you could spend money at your favorite brands where you hold stocks, and be rewarded for it at a premium? That is what M1 Finance, an investment and banking platform, announced Wednesday.

Select analyzed the card itself, what you need to know to apply for The Owners Rewards Card, and who this card is a good match for.

Owners Rewards Card by M1 highlights

The Owners Rewards Card by M1 is (potentially) a no-annual-fee credit card where you can earn up to 10% cash back by spending with the brands you have an investment in through M1 Finance, including Amazon, Target, Starbucks, Delta Air Lines, Tesla, Netflix and more.

By holding fractional shares of the below companies in your M1 brokerage account, you will earn the following cash-back rates:

M1 Owners Rewards Card earning rates

Reward TierStock TickerBrand
AMCAMC Theaters
BBWIBath & Body Works
VSCOVictoria's Secret
LULULululemon Athletica
5.00%AALAmerican Airlines
CMGChipotle Mexican Grill
DALDelta Airlines
DGDollar General
DPZDomino's Pizza
FDXFedex Kinko's
JBLUJetBlue Airways
LUVSouthwest Airlines
TJXHome Goods
TJ Maxx
UALUnited Airlines
UPSUnited Parcel Service
Whole Foods
BBYBest Buy
HDHome Depot
QSRBurger King
Tim Hortons
T-Mobile (USA)
VZVerizon Wireless
WBADuane Reade
Sam's Club
Pizza Hut
Taco Bell

The card also earns a solid cash-back rate on purchases made outside your respective stock holdings, as it gives 1.5% cash back on all purchases. However, you can only receive a maximum of $20 cash back per transaction.

The cash back earned can be automated to invest back into your portfolio, known as "Pies". The pie you have set up for your portfolio can automatically take your earned cash back after each statement cycle, and allocate the funds accordingly 一 making the credit card earnings akin to passive long-term investing.

Ben Reid, M1's general manager of credit cards, echoed the ethos of M1 as an investment platform, rather than day trading. And that with its credit card, "you can get special perks for being an owner" of your favorite companies.

The card comes with several more features, including:

Applying for The Owners Rewards Card by M1

To qualify for the card, and also maximize the benefits, there are a few prerequisites that must be met:

  • This card is only for M1 Finance members. It is free to become a member, and the M1 Finance app is free to download for both iOS and Android devices. The app is rated 4.5 and 4.6 stars, respectively.
  • You must become a member of M1 Plus, their proprietary financial services subscription product. This includes a wide variety of features, including: $0 trading commissions, digital checking with 1% APY, and discounted borrowing terms. The fee for M1 Plus is $125 per year, but the first year is waived.
  • If you downgrade from the M1 Plus plan, there is a $95 annual fee to hold the M1 Owner's Rewards Card

Once this is completed, you can enter your email to join the waitlist for the credit card. According to Reid, there are approximately 55,000 members on the waitlist as of July 28.

The card is estimated to be released to the public in early fall 2021.

Who this card is a good match for

The Owners Rewards Card by M1 is a great product for someone who actively buys and holds stock in the largest companies traded on the New York Stock Exchange, along with spending money regularly with them. So if you are a regular Starbucks visitor and investor, or visiting Tesla charging stations frequently while holding shares, the Owners Rewards Card by M1 can make sense.

Also, if you are looking for an all-in-one financial platform with services like digital banking, investing, credit, lending and more 一 M1 can provide those tools. 

Credit cards for investors

However, the M1 credit card is not the only card that earns rewards to be invested in a brokerage account. None of the cards below will reward you based on your stock holdings, but they do earn rewards on everyday purchases that can be transferred to a brokerage account. 

Fidelity: Fidelity® Rewards Visa Signature® Card

Charles Schwab: American Express Platinum Card® for Schwab

Morgan Stanley: The Platinum Card® from American Express Exclusively for Morgan Stanley

TD Ameritrade: TD Ameritrade Client Rewards Card

You can also take the cash back earned from the best cash-back credit cards, transfer it to a brokerage account and invest that in stocks, bonds or index funds of your choosing.

Bottom line

The Owners Rewards Card by M1 is a unique card as it rewards you for spending money with the companies you own a piece of. You save on your purchases, support the businesses you have a financial stake in and increase your ownership along the way. It is a solid three-pronged approach to continue building wealth.

However, keep in mind that you'll have to pay the $125 annual fee after the first year for M1 Plus to hold this credit card. If you can justify the annual fee, the card may be a great addition to your wallet.

Information about the American Express Platinum Card® for Schwab, Fidelity® Rewards Visa Signature® Card, The Platinum Card® from American Express exclusively for Morgan Stanley and the TD Ameritrade Client Rewards Card exclusively for Morgan Stanley has been collected independently by CNBC and has not been reviewed or provided by the issuer of the card prior to publication.

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
Plenty of rewards and benefits including 4X points per dollar for dining at restaurants worldwide
Enjoy an intro APR on purchases plus, Discover will match all the cash back you've earned at the end of your first year.