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M&T Bank's 5.05% Online Savings Account

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Update 5/09/09: The savings account rate is now 0.50% APY. Please check the bank's website for the latest rates.
Update 12/18/08: The savings account rate has fallen to 3.00% APY.
Update 2/28/08: The savings account rate has fallen to 3.70% APY.
Update 2/11/08: The savings account rate has fallen to 4.05% APY.

M&T Bank recently started an online savings account called M&T e-Money Market. The yield has remained at 5.05% APY for the last month. There are no minimum balance requirements or monthly service fees. According to the banking rep, they don't have an ACH system where you can initiate ACH transfers to and from your other bank accounts. In my opinion that's the main downside. However, I was told you can mail in your deposits or make a deposit at one of their branches. Below is a list of account features. Those labeled with CSR are based on info I received from the customer service rep.
  • 5.05% APY on all balances as of 10/23/07
  • No minimum balance, no monthly service fee
  • $1 per withdrawal in excess of 4 per month
  • ATM card, but fees may apply at non-M&T ATMs
  • Funded with ACH or a check
  • Update 12/18/08: They now appear to have an ACH system where you can initiate bank to bank transfers. However, it has low limits: $10K outbound, $20K inbound.
  • ACH transfers initiated from your external accounts allowed (CSR)
  • Additional deposits can be mailed (CSR)
  • Deposits and withdrawals can be made at a M&T branch (CSR)
  • Hard credit pull is done for the application (CSR)
  • Beneficiaries may be added after enrollment (CSR)
  • After application, need to sign up for web banking for online access (CSR)

M&T Bank has branches in the Mid Atlantic States with most branches located in New York, Pennsylvania and Maryland. The bank is FDIC insured (Certificate # 588).

Thanks to the readers who mentioned this new savings account.

  Tags: savings account

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Comments
10 Comments.
Comment #1 by Patty (anonymous) posted on
Patty
They seem to be giving out conflicting info re credit checks. Their email respose (from custserv@mtb.com) said "When an individual opens an account with M&T their information will be run through ChexSystems."

1
Comment #2 by Anonymous posted on
Anonymous
Thanks for the review Banking Guy, I am disappointed that M&t does not do ach transfers.

1
Comment #3 by awm129 (anonymous) posted on
awm129
M&T raised the rate to 5.00% APY

1
Comment #4 by Anonymous posted on
Anonymous
Received an email today from M&T indicating that sometime in January they will be adding an ACH funds transfer system to their eMoney Market account.
Bill in NY

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Comment #5 by Anonymous posted on
Anonymous
The rate is back down to 4.85% APY as of today.

1
Comment #6 by Anonymous posted on
Anonymous
Current Rate is 4.05% APY, not great but higher than others.

1
Comment #7 by Anonymous posted on
Anonymous
E-Money Market rate is now 3%. Also the ACH transfer limits inbound to $20,000 and outbound to $10,000. So if you are big money mover, this account will restrict you.

1
Comment #8 by Anonymous posted on
Anonymous
Regarding the ACH limit amounts, are they the same whether you use M&T or an external bank? Does this mean that if you initiate an EFT transfer from an external bank, you would not be subject to those limits? Also, I received conflicting information regarding whether this account has check writing privileges. One rep said yes and another said no. The website appears to indicate that it does have it.

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Comment #9 by Anonymous posted on
Anonymous
Rate lowered to 2.75%

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Comment #10 by Anonymous posted on
Anonymous
Bank-to-Bank transfers were a convenient feature, within the M&T limits.  Effective 4/21/2010 they started to impose a $3 "transfer fee" on each transaction.

 

Since there are other banks/CUs that allow savings accounts funds to be transferred to and from other institutions FREE, I guess the eMoneyMarket ceased to be competitive.

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