If you bank with M&T and want a place to stash your savings, the account details matter more than the brand name. A low interest rate paired with a monthly fee can quietly work against you, so it pays to know the numbers first. Here is a plain look at the M&T savings account lineup, what each one earns, what it costs, and how to avoid the fees.
Key facts at a glance
| Feature | M&T Relationship Savings |
|---|---|
| Provider | M&T Bank (Member FDIC) |
| Monthly maintenance fee | $7.50 (waivable) |
| APY | Around 0.01% APY (as of July 2026) |
| Minimum to waive fee | $500 daily balance, linked checking, or one deposit per cycle |
| Other options | Premium Savings, Starter Savings |
| Access | Branches, online, and mobile |
M&T savings account options
M&T Bank offers a few savings accounts, and the right one depends on your balance and whether you already bank there. The main three are Relationship Savings, Premium Savings, and Starter Savings.
Relationship Savings is the standard everyday account for adults. Premium Savings targets higher balances. Starter Savings is designed for children under 18 and is usually opened as a custodial account with a parent or guardian. Knowing which bucket you fall into keeps you from paying a fee you could have avoided.
M&T Relationship Savings fees and minimum balance
Relationship Savings carries a $7.50 monthly maintenance fee as of July 2026. The good news is that it is waivable, and the ways to skip it are reasonable.
You can waive the fee by keeping a minimum daily balance of $500 or more, by linking a personal M&T checking account, or by making at least one deposit during the monthly statement cycle. For most people who use the account regularly, that last option alone is enough to avoid the charge. Terms can change, so confirm the current rules with M&T before you open.
Premium Savings and Starter Savings
Premium Savings is built for larger balances. It carries a $20 monthly maintenance fee as of July 2026, waived if you keep an average daily balance of at least $10,000 or hold a qualifying M&T checking account such as MyChoice Premium or Power Checking. There is no separate minimum balance requirement beyond the fee-waiver threshold.
Starter Savings is the account for kids. As of July 2026 it has no monthly maintenance fee and no minimum balance requirement, and it can be opened as a custodial account. It typically must be opened at a branch, and you will need the child's Social Security number and birth certificate.
The interest rate is the weak spot
Here is where you need to pay attention. Across the standard M&T savings accounts, the interest rate is very low, sitting around 0.01% APY as of July 2026. On a $5,000 balance, that works out to only pennies a year.
For money you touch often, a near-zero rate may not matter much. But if you are trying to actually grow your savings, that rate is a real drag. Many online banks pay meaningfully higher yields, so the M&T accounts are better viewed as convenient parking spots than as growth engines. Rates are variable and can change, so check the current figure before deciding.
How to waive the monthly fee
Avoiding the fee is the difference between a free account and one that quietly costs you $90 a year. For Relationship Savings, the simplest route for most people is making at least one deposit each statement cycle, which happens naturally if you save regularly.
If you keep a $500 daily balance or already have an M&T checking account, you are also covered. For Premium Savings, you will need the $10,000 average daily balance or a qualifying premium checking account. Set a recurring transfer if you are worried about forgetting, since a single missed cycle can trigger the charge.
How M&T compares to online savings
An M&T savings account makes sense if you already bank with M&T and value branch access and the ability to move money between accounts instantly. The trade-off is the near-zero yield.
If earning more on your cash is the goal, fee-light mobile options are worth a look. Current Banking has no monthly fee and no minimum balance, and members can earn up to 4.00% APY with a qualifying $200 direct deposit. That is far more on cash than the standard M&T savings rate, which makes it a strong companion for money you want to grow.
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
Chime is another low-fee option, offering a linked savings account advertised around 3.75% APY with no monthly fee. Like Current, it pays far more on cash than a standard branch savings account and can hold the money you are trying to grow while your M&T account handles everyday convenience.
Chime
Chime
- Fee-free banking plus early pay access (up to 2 days early with direct deposit)¹ - Overdraft up to $200 without fees for eligible members¹ - 5% cash back on category of choice (with qualifying direct deposit)¹ - 3.75% APY on your savings¹
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
What users commonly report
Reviewers often like M&T for its branch network and the ease of linking savings to an M&T checking account. Many appreciate that the Relationship Savings fee is easy to waive with normal use.
A common complaint is the low interest rate, which several savers say makes the account poor for growing money. Others mention that some accounts, like Starter Savings, must be opened in person. Experiences vary by branch and account type.
Who an M&T savings account is best for
An M&T savings account fits best if you already bank with M&T, want everyday convenience, and plan to keep enough activity or balance to waive the fee. It works well as a companion to an M&T checking account.
If you want your savings to actually earn a competitive yield, a high-yield online account will serve you better. Whatever you choose, the key is avoiding fees and not letting a low rate erase your progress.
Frequently Asked Questions
What is the interest rate on an M&T savings account?
As of July 2026, the standard M&T savings accounts pay a very low rate, around 0.01% APY. That is fine for money you access often but weak for growth, which is why many savers compare higher-yield online accounts.
How do I avoid the M&T savings monthly fee?
For Relationship Savings, you can waive the $7.50 monthly fee by keeping a $500 daily balance, linking an M&T checking account, or making at least one deposit each statement cycle. Premium Savings waives its $20 fee with a $10,000 average daily balance or a qualifying premium checking account.
Does M&T have a minimum balance for savings?
Relationship Savings has no hard minimum balance, but keeping $500 daily is one way to waive the fee. Starter Savings has no minimum balance requirement. Confirm the current terms with M&T before opening.
Which M&T savings account is best for me?
Relationship Savings suits most adults, Premium Savings fits larger balances that can clear the $10,000 waiver, and Starter Savings is designed for children under 18. Choose based on your balance and whether you already have an M&T checking account.
