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Options trading M&T Bank lets you open a savings account with $0 and choose between fixed-rate and variable-rate CDs


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Options trading M&T Bank lets you open a savings account with $0 and choose between fixed-rate and variable-rate CDs

M&T Bank; Alyssa Powell/Business Insider Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, like American Express, but our reporting and recommendations are always independent and objective.M&T Bank (Member FDIC) could be good for people who live…

Options trading M&T Bank lets you open a savings account with $0 and choose between fixed-rate and variable-rate CDs

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options trading M&T Bank Review 4x3options trading M&T Bank Review 4x3



M&T Bank; Alyssa Powell/Business Insider


Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, like American Express, but our reporting and recommendations are always independent and objective.

  • M&T Bank (Member FDIC) could be good for people who live on the US East Coast and want a brick-and-mortar bank.
  • Your choice between M&T Bank and competitors may come down to which has a location closer to your home and whether you qualify to waive monthly fees at one bank and not another.
  • The M&T MyChoice Money Market Account has complicated rules surrounding interest rates, but if you meet all the qualifications, then you could end up earning a better rate than at some other brick-and-mortar banks.
  • With an M&T CD, you can choose between a fixed and variable rate — most banks only offer fixed-rate CDs.
  • See Business Insider’s picks for the best CD rates »

M&T Bank has over 700 branches in nine Eastern states and DC. You must open a CD at a physical branch, but you can open a savings, checking, and money market account online, even if you don’t live in a market where there are branches.

There isn’t much point in opening an account online if you don’t live near a branch, though. You can find plenty of online banks with higher APYs, lower minimum deposits, and no monthly fees. 

M&T Bank is probably the best fit for people who live near a branch. If you live near other banks, too, then your choice may come down to the nitty-gritty details, like where you qualify to waive monthly fees.

You might like banking with M&T if you:

  • Live near a branch
  • Don’t have much money to open a savings account
  • Are looking for savings and checking accounts that make it easy to waive monthly fees
  • Want several options for checking accounts
  • Want to earn a competitive APY on your money market account for the first three months

You might not like banking with M&T if you:

  • Don’t live near a branch
  • Want to earn a high APY on your savings account
  • Don’t have $1,000 to open a CD
  • Don’t have at least $10,000 to get the most out of a money market account
  • Find M&T Bank’s rules about earning interest with the money market account to be confusing
  • Details
  • Pros & Cons

    • Over 700 branches in 9 states and DC
    • Avoid $7.50 monthly service fee by maintaining minimum $500 balance, OR by opening an M&T checking account, OR by making one monthly deposit into your Relationship Savings Account
    • Interest compounded daily, paid monthly
    • FDIC insured
    Pros
    • No minimum opening deposit
    • Relatively easy to waive monthly service fee
    Cons
    • Low APY
    • $7.50 monthly service fee

    The M&T Relationship Savings Account has two main perks: There’s no minimum opening deposit, and it’s easy to waive the $7.50 monthly fee. This makes it a solid option for people looking for a low-cost savings account at a brick-and-mortar bank.

    You’ll earn just 0.02% APY on your savings, though. This is less than the national average of 0.06%, and way less than what you’ll earn with a high-yield savings account.

    See Business Insider’s picks for the best high-yield savings accounts »

  • Details
  • Pros & Cons

    • Access to over 700 branches and 1,800 ATMs in 9 states and DC
    • Avoid $4.95 monthly service fee by making one transaction per month
    • Access to a debit card, but no paper checks
    • No overdraft fee or option for overdraft protection; M&T will deny your transaction if it will overdraft your account
    • FDIC insured
    Pros
    • Avoid monthly service fee by making one monthly transaction
    • No overdraft fees
    • No monthly fee for Relationship Savings if you also open a checking account
    Cons
    • $25 opening deposit
    • $4.95 monthly service fee
    • $3 out-of-network ATM fee
    • No paper checks

    M&T has four checking accounts to choose from. The M&T MyWay Banking Account makes it easier to waive the monthly fee than some of the other accounts, and it doesn’t charge an overdraft fee. There isn’t an overdraft protection option, either, though — M&T will simply deny your transaction if it would overdraft the account.

    This account comes with a debit card, but not paper checks. It also charges a $3 fee when you use an out-of-network ATM. But if ATM fees are important to you, then you can look at some of M&T’s other checking accounts.

    See Business Insider’s picks for the best checking accounts »

  • Details
  • Pros & Cons

    • Access to over 700 branches in 9 states and DC
    • Terms ranging from 32 days to 6 years
    • Choose between a fixed or variable APY
    • Early withdrawal penalties: $25 plus 91 days interest for terms under 1 year; $50 plus 182 days interest for terms of 1 year or more
    • Interest compounded daily, paid monthly
    • FDIC insured
    Pros
    • Option to transfer earned interest to other M&T accounts
    • Choose between a fixed or variable APY
    Cons
    • Must be opened at an M&T branch, not online
    • $1,000 opening deposit
    • Few rates are posted online
    • High early withdrawal penalties

    An M&T CD is the one account you have to open at a physical branch. The bank doesn’t advertise most of its CD rates on its website, so you’ll have to contact your local branch to find rates. This makes it difficult to shop around for rates online.

    Most banks pay a fixed rate on your CD balance, which means your rate won’t go up or down during the term. But M&T has a unique feature: You can choose between a fixed and variable rate.

    Fixed and variable rates each have their pros and cons. Locking in a fixed APY can protect you if rates drop, but a variable rate comes in handy if rates increase.

    See Business Insider’s picks for the best CD rates »

  • Details
  • Pros & Cons

    • Over 700 branches in 9 states and DC
    • Earn higher APY for the first 3 months if your opening deposit is at least $10,000
    • Qualify for Premium interest rate by opening an M&T checking account and making 3 or checking transactions per month
    • Avoid $15 monthly service fee by maintaining a $2,500 balance, OR by being a MyChoice Premium Checking, Power Checking, or Portfolio Management Account customer
    • Interest compounded daily, paid monthly
    • FDIC insured
    Pros
    • Comes with paper checks
    • $1 minimum opening deposit
    • Earn higher rate with higher balance
    • Ability to qualify for higher Premium rates
    Cons
    • $15 monthly service fee
    • Rate may drop after first 3 months
    • $10,000 opening deposit to earn higher introductory rate for first 3 months

    Some things about the M&T MyChoice Money Market Account are simple: You can open an account with $1, you can access your money with paper checks, and you’ll pay a $15 monthly fee unless you meet certain qualifications.

    But there are a lot of rules surrounding interest rates — and they’re complicated.

    Your rate will vary depending on where you live. You’ll earn a regular APY if your opening balance is under $10,000; otherwise, you qualify for a higher introductory APY for the first three months.

    It’s a tiered system, so you’ll earn a higher APY with a higher balance — except with the introductory rate, which drops if your opening balance is $1 million or more.

    You may qualify for a premium interest rate if you open an M&T checking account and make at least three checking transactions per month.

    But regardless of whether you earn a regular or premium rate, the APY is still lower than what you can find with many other banks. The introductory rate may be competitive, depending on your balance and where you live.

    See Business Insider’s picks for the best money market accounts »

    M&T Bank has over 700 branches and 1,800 ATMs in nine East Coast states and DC. Here are the nine states with branches:

    • Connecticut
    • Delaware
    • Florida (only one location, in North Palm Beach)
    • Maryland
    • New Jersey
    • New York
    • Pennsylvania
    • Virginia
    • West Virginia (only two locations, one in Keyser and one in Fort Ashby)

    You’re able to open savings, checking, and money market accounts online, but you must open CDs at a physical branch.

    Android customers seem to be happier with the M&T mobile app than Apple customers. The app has received 4.3 out of 5 stars in the Google Play store but only 3.1 out of 5 stars in the Apple store.

    You can call the M&T general customer support number 24/7. To speak about online and mobile banking, call a separate number Monday through Friday, from 8:00 a.m. to 9:00 p.m. ET, or weekends from 9:00 a.m. to 5:00 p.m. ET.

    M&T accounts are FDIC insured for up to $250,000, or $500,000 if you have a joint account. 

    M&T Bank has branches and ATMs in several states on the East Coast. We’ve compared it to two other banks on the East Coast, with locations in most of the same states: TD Bank and Citizens Bank.

     M&T BankTD BankCitizens Bank
    Branches9 states and DC15 states and DC12 states
    Opening deposits   
    Savings$0$0$0.01
    Checking$25$0$0.01
    Money market$1$0$0.01
    CD$1,000$250$1,000
    Monthly fees   
    Savings$7.50 or $0$15, $5, or $0$4.99 or $0
    Checking$24.95, $14.95, $4.95, or $0$25, $15, or $0$25, $9.99, or $0
    Money market$15 or $0$12 or $0$10 or $0

    M&T Bank review vs. TD Bank review

    M&T Bank and TD Bank offer similar bank accounts with comparable opening deposits, monthly fees, and interest rates. There are a couple exceptions, though: CD opening deposits are lower with TD Bank, and you have the potential to earn a higher rate on your money market account with M&T Bank.

    Otherwise, you may find you prefer one bank over another because you qualify to waive monthly fees with one bank but not the other.

    TD Bank’s branches are open seven days per week, making banking easier for people who can’t get to a bank during regular work hours.

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    TD Bank has over 1,200 branches along the East Coast. If you either a) live in a state in the Northeast where there isn’t an M&T Bank, or b) travel along the East Coast regularly, then you may prefer TD Bank.

    See Business Insider’s picks for the best national banks »

    M&T Bank review vs. Citizens Bank review

    If you want to open a money market account, then you’ll probably prefer M&T Bank over Citizens Bank. The latter only pays 0.01% APY on its Personal Money Market Account, and you’ll earn more than that with M&T Bank regardless of your balance or location.

    For the rest of your accounts, your choice may come down to which bank makes it easier for you to waive monthly fees.

    Citizens Bank is also prominent in the East, and it has a presence in a few Midwest states, too. Your choice between M&T and Citizens may come down to which has a location closer to your home.

    Disclosure: This post is brought to you by the Personal Finance Insider team. We occasionally highlight financial products and services that can help you make smarter decisions with your money. We do not give investment advice or encourage you to adopt a certain investment strategy. What you decide to do with your money is up to you. If you take action based on one of our recommendations, we get a small share of the revenue from our commerce partners. This does not influence whether we feature a financial product or service. We operate independently from our advertising sales team.

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    More:

    M&T Bank
    M&T Relationship Savings Account
    M&T MyWay Banking Account
    M&T CD

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