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Information about American Express Platinum Card®, The Platinum Card® from American Express exclusively for Morgan Stanley has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.
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 earlier this year.
The Owners Rewards Card by M1 is a no-annual-fee credit card where you can earn up to 10% cash back as a M1 Plus member by spending with eligible brands; including Amazon, Target, Starbucks, Delta Air Lines, Tesla, Netflix and more.
M1 cardmembers can earn 1.5% cash back on everyday purchases, and unlock higher rewards tiers 2.5%, 5%, and 10% cash back when shopping with eligible brands with M1 Plus.
20.24% - 30.24% variable
Balance transfer fee
Foreign transaction fee
The card earns a solid cash-back reward tier rates of 2.5%, 5%, and 10% for M1 Plus members on eligible purchases and also gives 1.5% cash back on all other eligible purchases.
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. Keep in mind that shareholding is no longer a requirement when it comes to earning top-tier rewards.
The card comes with several more features, including:
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 three months is free.
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
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.
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.
Information about Fidelity® Rewards Visa Signature® Card, TD Ameritrade Client Rewards Card exclusively for Morgan Stanley has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.