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

M&T Bank's standard savings accounts earn rates well below what you can find elsewhere. As of the most recent information available, M&T's regular savings accounts pay rates that vary by account type and balance, but typically fall in the range of 0.01% to 0.05% annual percentage yield (APY). That means on a $10,000 balance, you would earn roughly $1 to $5 per year.

If you are looking for a high yield savings account—typically defined as one paying 4% APY or higher—you will need to look outside M&T. Online banks and some credit unions currently offer rates substantially higher than M&T's savings products. The gap matters: at 4.5% APY, that same $10,000 earns $450 per year instead of $5.

M&T does offer money market accounts, which sometimes pay slightly better rates than savings accounts, but these also tend to lag behind what online-only banks offer. Before opening any account at M&T for savings growth, compare the actual rate M&T is quoting you against rates at online banks like Marcus, Ally, or American Express Personal Savings.

Key Takeaways

  • M&T Bank's savings accounts pay rates between 0.01% and 0.05% APY, which is significantly lower than high yield savings accounts offered by online banks.
  • High yield savings accounts at other institutions currently pay 4% to 5% APY or higher, meaning your money grows much faster elsewhere.
  • M&T's money market accounts may pay slightly more than savings accounts, but still typically underperform online alternatives.
  • If you bank with M&T for checking or other services, keeping savings at M&T for convenience will cost you hundreds of dollars per year in lost interest.

Why M&T's rates lag behind online banks

M&T operates a large branch network across the Northeast and Mid-Atlantic, which means overhead costs for physical locations, staff, and operations. Online banks have no branches, no tellers, and no regional infrastructure. They pass those savings to customers through higher interest rates on deposits.

M&T's business model also depends on lending money out at higher rates than it pays depositors. With a smaller spread between what it pays savers and what it charges borrowers, M&T has less incentive to compete aggressively on deposit rates. Online banks, by contrast, often use high savings rates as their primary way to attract customers.

This is not unique to M&T—most traditional banks with branch networks pay low savings rates. If savings growth is your goal, the bank's physical presence is a cost you are paying for, not a benefit.

What M&T savings accounts actually offer

M&T's standard savings account requires a minimum opening deposit (typically $25 to $100, depending on the account type) and charges monthly maintenance fees if you fall below a minimum balance. The exact minimums and fees vary by which M&T savings product you choose.

M&T also offers a Money Market Account, which may pay a slightly higher rate than savings but comes with restrictions: you are typically limited to a certain number of withdrawals per month before fees kick in. Even with these restrictions, the rate still lags behind online alternatives.

If you have a large balance and maintain it consistently, you might negotiate a slightly better rate through a relationship manager at a local M&T branch. This is not advertised and depends entirely on the branch and your account history. Most customers will not have this option.

Where to find higher rates if you leave M&T savings

Online banks currently offering rates in the 4% to 5% range include Marcus by Goldman Sachs, Ally Bank, American Express Personal Savings, and Discover Bank. These rates change frequently, so check the current rate before opening an account. Most of these banks have no minimum balance requirements and no monthly fees.

Credit unions sometimes offer competitive rates as well, especially if you are a member. Some credit unions pay 4% or higher on savings accounts, though the rate may apply only to balances up to a certain amount (for example, 4% on the first $25,000, then a lower rate above that).

You do not have to close your M&T checking account to move your savings elsewhere. Many people keep a checking account at their local bank for convenience and direct deposit, then hold savings at an online bank for the better rate. The money moves between them via transfer in one to two business days.

How to move money from M&T to a high yield account

Open an account at the online bank of your choice. You will need your Social Security number, a government ID, and proof of address (a recent utility bill or bank statement works). Most online banks can open an account in 10 to 15 minutes.

Once the account is open, link it to your M&T account. You can do this by providing your M&T account number and routing number to the new bank, or by using the new bank's transfer tool to pull money from M&T. The first transfer may take three to five business days while the banks verify the connection.

After the first transfer clears, subsequent transfers usually move within one to two business days. Some online banks offer a one-time reimbursement for ACH transfer fees if you are moving a large balance, so ask before you transfer.

Should you keep any money at M&T for savings

If you use M&T for checking and have a small emergency fund (under $1,000), the convenience of keeping it in the same bank might outweigh the interest loss. You avoid managing multiple logins and can move money instantly between accounts.

For anything beyond a small emergency cushion, the math strongly favors moving to a high yield account. On a $25,000 balance, M&T's 0.05% rate earns you $12.50 per year. A 4.5% account earns $1,125. That is $1,112.50 per year you are leaving on the table by staying at M&T.

If you are saving for a specific goal—a down payment, a car, a vacation—and the timeline is more than a few months, a high yield account at another bank is the better choice. The interest adds up, and you are not giving up any safety: deposits at FDIC-insured banks are protected up to $250,000 per account.

Frequently Asked Questions

Can I earn more interest if I open a larger account at M&T?

M&T does not tier its savings rates based on balance size the way some banks do. A $100,000 balance earns the same APY as a $1,000 balance. Your only option for a better rate at M&T is to ask a branch manager about relationship pricing, which is not may provide and depends on your account history.

What if I need to access my money quickly from an online bank?

Transfers from an online bank back to your M&T checking account take one to two business days. If you need cash immediately, this is slower than withdrawing from an M&T branch. For true emergency funds you might access within hours, keeping a small amount at M&T makes sense; for everything else, the higher rate outweighs the slightly longer transfer time.

Is my money safe at an online bank if M&T is FDIC-insured?

Online banks are also FDIC-insured. Your deposits are protected up to $250,000 per account at any FDIC-insured bank, whether it has branches or not. Safety is the same; the only difference is the interest rate and how you access your money.

Do I have to close my M&T account to move my savings?

No. You can keep your M&T checking account open and move only your savings to another bank. Many people do this to maintain direct deposit and local branch access while earning better interest on savings elsewhere.