What does my $1.99 per mont pay for?

Hello

Judging by the price, it is for Microsoft 365 Basic, which is for 100GB of OneDrive storage.

Please verify that's indeed what you have https://account.live.com > subscription.

If you just subscribed to it, it can take up to 48 hours for your storage to be provisioned and see difference. If it has been more than 48 hours, you would need to contact Microsoft billing support. To get help, open the "Get Help" app on your computer (just search for it in the Start menu). or go to https://support.microsoft.com/contactus, Type "Billing" and press Enter. On the next screen, click "Contact support" at the bottom of the page, then choose "Microsoft 365" > "Manage my subscription". You’ll then see the option to chat with a Microsoft support agent who has access to your account to help review the issue.

The $1.99/month charge is for additional Microsoft cloud storage beyond the free 5 GB, or for a Microsoft 365/OneDrive storage add‑on, but the warning appears because the 5 GB free portion of the storage is nearly full.

Key points from the storage model:

• Free Microsoft accounts include 5 GB of free cloud storage shared across OneDrive files/photos, Outlook.com attachments, and Microsoft 365 apps.
• This 5 GB free allocation exists whether or not there is a paid subscription; the warning is specifically about that free 5 GB area being close to full.
• When Microsoft storage is full or over quota, OneDrive may become read‑only and email/attachments can be affected, which is why the warning is sent even if there is a paid plan.
• To avoid hitting the limit, either:
  • Free up space (delete files, large email attachments, or remove shared folders that push the account over quota), or
  • Ensure the paid subscription actually increases the storage quota on the account being used to sign in, and if more space is still needed, buy more storage or upgrade to a Microsoft 365 plan.

If the account is a free user without Microsoft 365, the included storage is 5 GB; if it is a Microsoft 365 Personal or Family subscriber, 1 TB of cloud storage is included and more can be purchased on top.

References:

• Microsoft storage FAQs
• My OneDrive says it's full