M&T Bank is a large regional bank serving the Northeast and Mid-Atlantic, with branches across states like New York, Pennsylvania, and Maryland. If you bank with M&T already, opening one of its savings accounts can feel convenient.
But convenience and a strong return are not always the same thing. M&T's savings accounts come with a monthly fee and a modest interest rate, so it helps to know the details before you sign up.
This review covers the M&T Bank savings account in plain terms: the fees, how to avoid them, the rate, and a few higher-yield options to compare against.
M&T Bank Savings Account Basics
M&T offers a few savings products, with the Relationship Savings account being the main everyday option. It is a standard savings account meant to hold money you do not need for daily spending.
Like other bank deposits, M&T accounts are FDIC insured up to $250,000 per depositor, per ownership category. That puts your money in one of the lower risk places you can keep it.
The big draw is branch access. If you prefer banking in person or want savings linked to an M&T checking account, the in-network setup can be handy. The trade-offs show up in the fees and the rate.
The Monthly Fee and How to Avoid It
The M&T Relationship Savings account charges a monthly maintenance fee of $7.50. Over a year, that adds up to $90, which can quietly eat into a small balance.
The good news is that the fee is waivable. Based on M&T's terms, you can typically avoid it by doing one of the following each statement cycle:
- Keep a minimum daily balance of $500 or more in the account.
- Link a personal M&T checking account to your savings.
- Make at least one deposit into the savings account during the cycle.
For many savers, making a deposit each month is the easiest path, and it doubles as a good savings habit. Still, a fee you have to actively dodge is a downside compared to no-fee accounts. This guide on typical minimum balances shows how other banks compare.
If you would rather skip fees entirely, Current is worth a look. It pairs a clean mobile app with savings features and avoids the kind of monthly maintenance charges traditional banks tack on.
Current Banking
Current Banking
Current is a mobile-first banking app with no monthly fee and no minimum balance. Members can earn up to 4.00% APY with a qualifying direct deposit of $200, receive direct-deposit paychecks up to 2 days early, and overdraft up to $200 fee-free.
Standout feature
4.00% APY on Savings Pods (with a $200+ qualifying direct deposit) plus paycheck up to 2 days early — both included on the standard account for free
Fees
Free
Pros
$0 monthly fee; up to 4.00% APY on Savings Pods with qualifying direct deposit; paycheck up to 2 days early;
Cons
No physical branches
The Interest Rate
Here is where M&T, like most big traditional banks, falls short. The APY on its standard savings account is low, often a small fraction of a percent.
You will generally only earn interest on balances above $1, and even then the rate is far below what online high-yield accounts pay. In a year when many online banks pay around 4%, a rate near the national average barely moves your balance.
The difference matters more than it looks. On $5,000, the gap between a near-zero rate and a 4% account can be roughly $200 a year. To see how that compounds, here is how interest works on a savings account.
Chime is one low-fee alternative that helps your money work harder. It charges no monthly fees and lets you automate savings with round-ups and recurring transfers, so you can grow your balance without effort.
Chime
Chime
- Fee-free banking plus early pay access - Overdraft up to $200 without fees - 5% cash back and build credit everyday. - 3.75% APY on your savings.
Standout feature
No credit check, no interest, no annual fee, and no minimum deposit required.
Fees
$0
Pros
Fee-Free Banking and Get paid up to 2 days early
Cons
App/online-only support, no branches
Features Beyond the Rate
M&T savings accounts do offer some useful extras, especially for existing M&T customers. The biggest is overdraft protection. You can link your savings to an M&T checking account to cover overdrafts and dodge costly fees.
The account also supports direct deposit and an automatic transfer tool, sometimes branded as Easy Save, that moves money into savings on a schedule. Automation like this is a smart way to build a balance.
Branch and ATM access round out the package. If you value walking into a branch for help or making cash deposits in person, that physical network is a genuine plus that online-only banks cannot match.
Still, none of these perks change the core math. You can often get overdraft links, automation, and a far better rate elsewhere without a monthly fee to manage.
Who the M&T Savings Account Fits
The M&T Bank savings account makes the most sense if you already bank with M&T and want everything under one roof. Linking savings to your checking for overdraft protection and easy transfers is the strongest reason to choose it.
It is a weaker pick if your main goal is growing your money. The low rate and the monthly fee work against you, especially on larger balances where a high-yield account would earn much more.
Whatever account you choose, savings is just one piece of your financial health. Strong credit matters for future loans and rates too. Firstcard helps people with no, low, or limited credit build a stronger profile.
Self is another tool to consider. Its Credit Builder Account links a small monthly savings habit to credit building, so you can grow savings and your credit at the same time.
Alternatives Worth Comparing
Before you settle on M&T, it pays to compare. Online banks and high-yield accounts usually offer no monthly fees, no minimum to dodge, and a much higher APY.
The main thing you give up with online banks is in-person branch service. For many savers, that is a fair trade for an extra few hundred dollars in interest each year. You can also keep a small balance at M&T for branch needs and stash the rest online.
If you want to weigh your options, this overview of the different types of savings accounts is a good place to start. You might also compare a high-yield account with a money market account if you want occasional check-writing.
The takeaway: M&T's savings account is fine for convenience, but if growth is your goal, a no-fee high-yield account will likely serve you better. Confirm current rates and terms before you open anything, since they change.
Frequently Asked Questions
Does the M&T Bank savings account have a monthly fee?
Yes. The M&T Relationship Savings account charges a $7.50 monthly maintenance fee. You can waive it by keeping a minimum daily balance of $500 or more, linking a personal M&T checking account, or making at least one deposit during the statement cycle. Terms and conditions apply.
What is the interest rate on an M&T savings account?
The APY on M&T's standard savings account is low, often a small fraction of a percent, and you generally earn interest only on balances above $1. That is well below what many online high-yield accounts pay. APYs vary, so check M&T's current rate before opening.
Is the M&T Bank savings account FDIC insured?
Yes. M&T Bank is FDIC insured, so your deposits are protected up to $250,000 per depositor, per ownership category. That makes it a lower risk place to keep your savings, the same as other insured banks.
Should I use M&T savings or an online high-yield account?
It depends on your priorities. M&T is convenient if you want branch access and overdraft links to an M&T checking account. If you mainly want your money to grow, a no-fee online high-yield account usually pays a much higher rate. Many people use both, keeping a small balance at M&T and the rest online.
