M&T Bank does not currently offer a dedicated high yield savings account

M&T Bank's standard savings account earns interest, but the rate is not competitive with what you will find at online banks or credit unions that specialize in high yield products. As of now, M&T does not market a separate high yield savings product under that name. If you are banking with M&T for other reasons—a checking account, mortgage, or local branch access—your savings will earn whatever the current rate is on their regular savings account, which typically ranges from near zero to a fraction of a percent depending on your balance and the current rate environment.

M&T's savings rates change without notice and vary by branch location and account type. You can check the current rate on M&T's website or by calling your local branch, but the rate will almost certainly be lower than what online banks offer. If earning the highest possible interest on savings is your priority, you will need to look elsewhere or move money to a separate account at another institution.

Key Takeaways

  • M&T Bank offers a regular savings account but not a high yield savings account, and the interest rate is typically much lower than online alternatives.
  • M&T savings rates vary by location and account type and are not published in a single place—you must contact your branch or check online for your specific rate.
  • If you want high yield savings, you can open an account at an online bank while keeping your M&T checking or other products for convenience.
  • Money market accounts at M&T may offer slightly higher rates than savings accounts, but they still lag behind dedicated high yield products at online banks.

What M&T offers instead of high yield savings

M&T has a Money Market Account that sometimes pays more than the regular savings account, but the difference is usually small. Money market accounts typically require a higher minimum balance to open and may limit the number of withdrawals you can make per month. The rate still tends to be lower than what you would earn at an online bank's high yield savings account.

M&T also offers Certificates of Deposit (CDs), which lock your money away for a set period—usually three months to five years—in exchange for a fixed interest rate. If you know you will not need the money for a specific amount of time, a CD may pay more than savings, but you cannot withdraw early without a penalty. Check M&T's current CD rates on their website or in branch.

How M&T savings rates compare to online banks

Online banks like Marcus, Ally, and American Express Personal Savings typically offer rates that are two to five times higher than M&T's savings account rate. The difference matters: on $10,000, the gap between 0.01% (typical for M&T) and 4.5% (typical for online high yield accounts) means you earn roughly $450 per year instead of $1. That gap widens the longer you keep money in savings.

M&T's rates are lower partly because the bank maintains physical branches and pays for in-person customer service. Online banks have lower overhead and pass some of that savings to customers through higher rates. If you do not need a local branch, you are paying for a service you are not using.

Why you might keep money at M&T anyway

Some people choose to keep savings at M&T even though the rate is lower because they already have a checking account there and prefer one bank for everything. If you use M&T's checking, bill pay, or other services, moving savings to another bank means managing two logins and two statements. That convenience has a cost—the interest you give up—but for some people it is worth it.

Another reason is access to a physical branch. If you deposit cash regularly or need to speak to someone in person, an online bank will not help you. M&T branches are available in New York, New Jersey, Pennsylvania, Delaware, Maryland, Virginia, West Virginia, and Washington D.C. If you live in one of those areas and use your branch, the lower rate may be a trade-off you accept.

How to move money to a high yield account while keeping M&T

You do not have to choose. Many people keep a checking account at M&T for daily use and bill pay, then open a high yield savings account at an online bank for money they want to grow. You can transfer money between them using ACH transfer, which is free and takes one to three business days. Set up the transfer through M&T's online banking or through the online bank's website.

To start an ACH transfer, you will need the routing number and account number of the account you are sending money to. M&T's routing number is 061000104, but confirm this on M&T's website before you transfer. The online bank will ask for your M&T account details and will verify the connection with a small deposit and withdrawal—this takes a few days but happens automatically.

M&T savings account features beyond interest rate

M&T's savings account comes with FDIC insurance up to $250,000, which protects your money if the bank fails. Online banks also carry FDIC insurance, so this is not an advantage. You can open a savings account online or in branch, and you can link it to your M&T checking account for easy transfers.

M&T does not charge a monthly fee on savings accounts if you maintain a minimum balance, which varies by account type. Check the current minimum on M&T's website or ask your branch. Some accounts have no minimum at all. If you fall below the minimum, M&T may charge a monthly fee, which would eat into any interest you earn.

Frequently Asked Questions

Can I earn more interest by moving my M&T savings to a CD?

Yes, CDs typically pay more than savings accounts at M&T, but your money is locked away. If you need the cash before the CD matures, you pay an early withdrawal penalty that can wipe out all the interest you earned. Use a CD only for money you know you will not touch.

What is the current interest rate on M&T savings accounts?

M&T's rates change frequently and vary by location and account type. Check M&T's website, call your branch, or visit in person to find out the current rate for your specific account. Do not rely on rates you see quoted elsewhere, as they may be outdated.

If I open a high yield savings account elsewhere, will I lose my M&T relationship?

No. You can keep your M&T checking account and other products while opening a savings account at an online bank. Many people do this. You will have two logins to manage, but you can transfer money between them for free using ACH transfer.

Does M&T charge to transfer money to another bank?

M&T does not charge a fee for outgoing ACH transfers to other banks. The transfer takes one to three business days. Some online banks also offer wire transfers, which are faster but may carry a fee at M&T.

Is my money safe in an online bank's high yield savings account?

Yes, as long as the bank is FDIC insured, which nearly all online banks are. Your money is protected up to $250,000 per account. Check the bank's website to confirm FDIC insurance before you open an account.