M&T does offer high yield savings accounts, but the rate depends on your balance and account type

M&T Bank offers a Money Market Account that functions as a high yield savings product, though it is not marketed under that exact name. The account earns interest that varies based on your balance tier — the more you deposit, the higher your rate. M&T also offers a standard savings account with a lower rate, so you need to choose the Money Market Account specifically if you want the higher yield.

The actual rate M&T pays changes frequently and depends on the Federal Reserve's current policy. You can see the current rates on M&T's website or by calling 1-800-724-2440. Rates are typically higher for larger balances — for instance, a Money Market Account with $25,000 or more may pay more than one with $2,500. The exact thresholds and rates vary by region, since M&T operates in multiple states with different market conditions.

One important detail: M&T's Money Market Account comes with check-writing privileges and a debit card, which makes it more flexible than some high yield savings accounts at online banks. However, federal rules limit you to six transfers or withdrawals per month (not counting ATM withdrawals or in-person transactions). If you exceed that limit, M&T may charge a fee or convert the account to a checking account.

Key Takeaways

  • M&T's Money Market Account is the high yield product; the standard savings account pays significantly less.
  • Rates are tiered by balance, so you earn more interest on larger deposits.
  • You can write checks and use a debit card, unlike many online high yield savings accounts.
  • Federal law limits you to six transfers or withdrawals per month, and M&T enforces this limit.
  • Rates change with Federal Reserve policy and vary by region, so check M&T's current rates before opening.

How M&T's Money Market Account compares to standard savings

M&T's standard savings account typically pays a much lower rate than the Money Market Account — often less than 0.01% APY. The Money Market Account is designed to pay closer to current market rates, which have ranged from 4% to 5% APY in recent years depending on Federal Reserve decisions. The difference in annual earnings on a $10,000 balance can be hundreds of dollars, so the account type you choose matters.

The tradeoff is that Money Market Accounts usually require a higher minimum balance to open — M&T typically requires $2,500 to $25,000 depending on the specific product and your region. If your balance drops below the minimum, M&T may charge a monthly fee or move you to a lower-rate tier. Standard savings accounts have lower minimums, sometimes as little as $100, but you pay for that flexibility with a much lower rate.

Balance tiers and how they affect your rate

M&T structures its Money Market Account in balance tiers, meaning you earn different rates on different portions of your balance. For example, the first $2,500 might earn one rate, the next $22,500 might earn a higher rate, and balances above $25,000 might earn the highest rate. This is different from some banks that pay one flat rate regardless of balance size.

The exact tier structure changes based on market conditions and M&T's current strategy. You should ask M&T directly about the current tiers when you open an account, because the thresholds and rates printed online may be outdated. The bank updates rates regularly, sometimes weekly, so what you see today may not be what you earn next month.

Withdrawal limits and how they work

Federal Regulation D limits you to six transfers or withdrawals per month on Money Market Accounts. This includes transfers to other accounts, payments to third parties, and checks you write. It does not include ATM withdrawals, debit card purchases, or withdrawals you make in person at an M&T branch.

If you exceed six transfers in a month, M&T may charge a fee (typically $25 to $35 per excess transaction) or close the account. Some banks convert the account to a checking account instead, which removes the rate advantage. To avoid this, treat your Money Market Account as a place to hold money you do not need to move frequently — use a checking account for everyday transactions.

How to find M&T's current rates

M&T publishes rates on its website, but the rates shown may be regional or product-specific. The easiest way to see what you would actually earn is to visit M&T.com, navigate to the savings or Money Market section, and enter your state and expected balance. You can also call M&T at 1-800-724-2440 and ask a representative for the current rate on a Money Market Account with your expected balance.

When you call or visit online, ask specifically about the rate, the minimum balance required, any monthly fees, and the balance tiers. Write down the rate and the date you received it, because rates change frequently and M&T is not required to honor a rate you saw a week ago. If you are comparing M&T to other banks, make sure you are comparing the same account type — a Money Market Account at M&T to a Money Market Account or high yield savings account elsewhere, not to a standard savings account.

Opening an M&T Money Market Account

You can open a Money Market Account online, by phone, or in person at an M&T branch. Online is usually fastest — you can complete the application in 10 to 15 minutes and fund the account immediately if you have another bank account to transfer from. You will need your Social Security number, a government-issued ID, and proof of address (a recent utility bill or bank statement works).

If you open online, M&T will ask you to verify your identity through a video call or by answering security questions. Once approved, you can transfer money from another bank account using ACH (which takes one to two business days) or deposit cash at an M&T ATM or branch. The account is active and earning interest as soon as the money arrives, even if you have not received your debit card yet.

Frequently Asked Questions

Can I move money in and out of a Money Market Account without limits?

You can move money in as many times as you want, but federal law limits you to six transfers or withdrawals per month. This includes checks you write, transfers to other accounts, and payments to third parties. ATM withdrawals and in-person branch withdrawals do not count toward this limit.

What happens if my balance drops below the minimum?

M&T will typically charge a monthly fee (usually $10 to $25) if your balance falls below the required minimum. Some accounts may be downgraded to a lower-rate tier instead. Check your account agreement or call M&T to confirm the exact penalty for your specific account.

Is M&T's Money Market Account FDIC insured?

Yes. M&T is an FDIC-insured bank, and your Money Market Account is covered up to $250,000 per depositor. If you have multiple accounts at M&T (checking, savings, Money Market), the FDIC coverage is combined across all of them, so your total coverage at M&T is $250,000, not $250,000 per account.

How often does M&T change its rates?

M&T can change rates at any time without notice. Rates typically move when the Federal Reserve changes its policy, but banks also adjust rates based on their own funding needs. You should check M&T's website or call periodically if you want to know whether your rate has changed.

Can I have both a Money Market Account and a checking account at M&T?

Yes. Many M&T customers have both. You can use the checking account for everyday spending and bill payments, and keep the Money Market Account as a savings vehicle. Transfers between your own M&T accounts do count toward the six-transfer limit, so plan accordingly.