M&T Bank does offer high yield savings accounts, but the rate and features depend on which product you choose

M&T Bank offers high yield savings accounts through its Money Market Account and through certain promotional rates on regular savings accounts. The Money Market Account typically carries a higher interest rate than a standard savings account, though the exact rate changes based on your balance and current market conditions. M&T also periodically runs promotions that boost rates on savings accounts for new customers or existing account holders, but these are time-limited offers.

The catch is that M&T is a regional bank with branches mainly in the Northeast and Mid-Atlantic, so the rates and product names may differ slightly depending on which state you bank in. If you are comparing M&T to online banks like Ally or Marcus, M&T's rates are typically lower because M&T maintains physical branches and the overhead that comes with them.

Key Takeaways

  • M&T's Money Market Account is the main high yield product, but the rate varies by balance tier and changes monthly.
  • M&T occasionally runs limited-time rate promotions on savings accounts for new or existing customers, so the current offer depends on when you open the account.
  • M&T rates are generally lower than online-only banks because M&T operates physical branches across the Northeast and Mid-Atlantic.
  • You can check the current rate on M&T's website or by calling your local branch, since rates are not fixed and promotional offers change frequently.

M&T Money Market Account: The main high yield option

M&T's Money Market Account is structured around balance tiers. The higher your balance, the higher your interest rate. For example, you might earn one rate on balances under $25,000 and a higher rate on balances above that threshold, though the exact tiers and rates shift as the Federal Reserve changes its benchmark rate.

Money Market Accounts typically come with a debit card and check-writing privileges, which distinguishes them from pure savings accounts. However, federal rules limit you to six withdrawals or transfers per month (though this rule is enforced less strictly now than it was before 2020). If you exceed that limit, M&T may charge a fee or convert the account to a checking account.

The rate on a Money Market Account is variable, meaning it can go up or down. M&T adjusts rates in response to Federal Reserve decisions, so your earnings will fluctuate over time. This is different from a fixed-rate certificate of deposit (CD), where the rate is locked in for a set term.

Promotional savings rates: When M&T boosts rates for new customers

M&T periodically offers promotional rates on regular savings accounts, typically for new customers or new money deposited into existing accounts. These promotions might offer a rate significantly higher than the standard savings rate for a limited period—often three to six months—after which the rate drops to the regular savings account rate.

Promotional offers are not permanent and vary by region and by the time you open the account. You will need to check M&T's current promotions on their website or ask at a branch to see what is available right now. These offers are designed to attract new customers, so they are not available to everyone and not available all the time.

How M&T rates compare to online banks

Online banks like Ally, Marcus, and Discover typically offer higher interest rates on savings accounts than M&T does. This is because online banks have lower operating costs—they do not maintain physical branches—and they pass some of those savings to customers in the form of higher rates. As of the time this was written, online banks were offering rates roughly 0.5% to 1% higher than M&T on comparable products, though this gap narrows or widens depending on what the Federal Reserve does.

If you value having a physical branch location where you can deposit cash or speak to someone in person, M&T's lower rates may be a trade-off you accept. If you primarily bank online and do not need a branch, an online bank will likely earn you more interest on the same balance.

What you need to open an M&T high yield savings account

To open an M&T Money Market Account or promotional savings account, you will need a government-issued ID, your Social Security number, and an initial deposit. The minimum opening deposit varies by product and by branch, so you should ask your local M&T branch or check their website for the current requirement. Some promotional offers may have a higher minimum deposit than the standard account.

You can open an account in person at an M&T branch, online through their website, or by phone. If you open online, you may be able to fund the account when ready with a transfer from another bank, or you may need to mail in a check or visit a branch to make the initial deposit.

Fees and account maintenance

M&T charges a monthly maintenance fee on some savings and Money Market Accounts, though the fee may be waived if you maintain a minimum balance or set up direct deposit. The fee amount and the balance required to waive it vary by account type and by region. You should ask about the fee structure when you open the account so you understand what it will cost you to maintain it.

There is no fee for deposits or withdrawals, but as mentioned earlier, federal rules limit you to six transfers or withdrawals per month on Money Market Accounts. Exceeding this limit may result in a fee or account conversion.

How to find the current M&T rate

M&T publishes its current rates on its website, organized by account type and balance tier. You can also call your local M&T branch or visit in person to ask about the current rate on a Money Market Account or any active promotional offers. Because rates change frequently and promotional offers are time-limited, the rate you see today may not be the rate you get if you open the account next month.

If you are comparing M&T to other banks, make sure you are comparing the same product type—Money Market Account to Money Market Account, for example—and that you are looking at the rate for your expected balance level, since tiered accounts pay different rates depending on how much you have on deposit.

Frequently Asked Questions

Can I move money between my M&T checking and Money Market Account without hitting the six-withdrawal limit?

Transfers between your own M&T accounts are typically not counted toward the six-withdrawal limit, though this depends on how the transfer is made. Transfers initiated through M&T's online banking or at a branch usually do not count. Transfers initiated by a third party or through an external service may count. Ask M&T directly about your specific situation.

What happens if my balance drops below the tier threshold on a Money Market Account?

Your interest rate will drop to the lower tier rate when ready. For example, if your rate is based on a $25,000 minimum and your balance falls to $24,000, you will earn the lower rate going forward. The rate change is automatic and takes effect on your next interest posting date.

Is the promotional rate may provide for the full promotional period?

Yes, promotional rates are may provide for the stated period as long as you meet any conditions—such as no withdrawals or maintaining the account in good standing. Once the promotional period ends, the rate automatically drops to the regular savings rate. M&T will notify you before the promotion ends.

Can I open an M&T Money Market Account if I do not live near a branch?

You may be able to open an account online or by phone, but some products require an in-person visit or a mailed check for the initial deposit. Contact M&T directly to ask whether the Money Market Account can be opened remotely in your state.

How often does M&T change its interest rates?

M&T adjusts rates in response to Federal Reserve decisions, which typically happen eight times per year. However, M&T may also adjust rates between Fed meetings if market conditions change. You should check the rate periodically if you want to know whether it has moved.