M&T Bank Overdraft Fees, Limits, and Protection

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UPDATE: Great news for M&T Bank customers – the bank slashed overdraft fees by more than half in early 2022, which could save you hundreds of dollars per year! Here’s the latest on M&T Bank’s overdraft fees and policies.

Fee Cost Max. Overdrafts Per DayMax. Daily Cost
M&T Bank Overdraft Fee$15 1$15
M&T Bank Insufficient Funds Fee$0none on linked accountsNone
M&T Bank Linked Account Transfer FeeNone 5None 

When was the last time you spent more money than you had in the bank?

The truth is, it can happen to anyone.

You may have not remembered how much you had in your bank account or faced an emergency expense where you needed to spend a little extra. 

Either way, overspending can lead to an overdraft. This occurs when you don’t have enough money available in your account so M&T Bank covers the transaction. If this happens, you can cover your urgent cost, but your account could also be subject to a fee.

If you’re an M&T Bank account holder (or thinking of becoming one), here’s what you need to know so that you can avoid costly overdraft fees while still getting access to the cash you need.

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What we’ll cover:

Upate (April 2022): M&T Bank to slash overdraft fees

tweet detailing M&T Bank's overdraft fee reduction

M&T Bank has announced major changes to its overdraft policies, which will take effect sometime during Q2 2022:

  • Eliminate the non-sufficient fund fee and overdraft protection transfer charge from a linked deposit account
  • Reduce overdraft fees from $36 to $15 
  • Limit overdraft fees to just once per day (reduced from a current maximum of five fees per day) 

“Financial wellness is a critical component to the quality of one’s life,” Chris Kay, the bank’s head of consumer banking, business banking, and marketing, said in a press release. “The enhancements we’re making today, along with those we’ve made previously, make our banking services more accessible and give our customers more choice and flexibility in managing their finances — especially during challenging times.”

What is M&T Bank’s overdraft policy?

website showing M&T Bank overdraft protection program

Like most banks, M&T Bank will pay overdrafts at their discretion, based upon the transactions, your account balance and history and other factors. If an overdraft is not approved, your transaction will not be processed, meaning your check will bounce or debit card purchase/ATM withdrawal will be declined.

At M&T Bank’s discretion, they will authorize and pay the following overdraft types: 

  • Automatic bill payments 
  • Checks and other transactions used by your checking account number 

They will not authorize the following overdrafts: 

  • ATM transactions 
  • Everyday debit card transactions

M&T Bank will also not process overdraft transactions if you have too many overdrafts, don’t make regular deposits, or your account is not in good standing. The bank has a standard overdraft policy that you will be charged a specific amount unless you qualify for one of their exceptions. Account history is taken into consideration once you are charged a fee. 

How much are M&T Bank’s overdraft fees?

M&T Bank now charges $15 per overdraft transaction, reduced from a $36 overdraft fee in mid-2022. You will have to pay the extra money unless you meet one of the following qualifications: 

  • The amount charged was less than $5 
  • The overdraft came from an ATM or a one-time debit card transaction from your check account, and you didn’t allow the bank to authorize and pay overdraft transactions when you don’t have enough money to pay. 
  • Your checking account has been charged five times for insufficient funds and overdraft fees on the same business day. 
  • You have a MyWay Banking from M&T Bank Account. 

You are subject to just one overdraft fee per day, so you’re daily overdraft fees won’t exceed $15 if you make multiple overdraft transactions.

If your M&T account is their MyWay Banking product, you will never be charged an overdraft fee. However, if you do not have sufficient funds available in your account to cover a transaction, in most cases, the transaction will be declined. M&T’s MyWay account does charge a $4.95 monthly fee, but this is waived if you make regular monthly transactions, such as direct deposits.

WAIT! High overdraft fees aren't the only way M&T Bank is costing you money.

With inflation overheating, you've probably heard that interest rates are climbing sharply. That means that for the first time in years, it's a great time to shop around for a high interest savings account.

M&T Bank savings accounts currently pay just 0.01% APY1 as of 11/22/2022. That means that if you have $2,500 in a savings account, you'd earn just $0.25 after one year! Move those hard-earned savings to an FDIC-insured bank paying 3.50% APY and you'd earn $87.49 after one year, and some banks now pay even higher rates!

Don't let your hard-earned savings sit there doing next to nothing. Check out the rates that you can earn at other banks:

How much will M&T Bank let me overdraft at an ATM?

M&T Bank ATM overdraft

How much M&T Bank is willing to let you overdraft at an ATM is based on the bank’s discretion. If they do not authorize it, it won’t be paid and you will be charged the $36 fee. 

The overdraft fee for each withdrawal is capped at one $15 overdraft fee per day. You can opt into ATM overdraft coverage with the following options: 

  • Visit your local M&T Bank and ask an employee for assistance 
  • Edit your overdraft settings in the M&T Bank mobile app 
  • Edit your overdraft settings through the M&T Bank website 
  • Call your local M&T Bank at 1-800-724-2440 for assistance 

If you would like to cancel option ATM overdrafts, contact your local M&T Bank for assistance. Your debit card or check will be declined if you exceed your checking account balance, but you won’t be charged overdraft fees. 

Does M&T Bank charge NSF fees?

No! M&T Bank has just eliminated NSF fees if you have linked accounts; the fee was previously $36 per NSF transaction.

Can you get an M&T Bank overdraft fee waived?

Despite what most people might think, you can get an overdraft fee refunded or waived. Public opinion is shifting about overdraft fees, so banks are becoming more willing to be flexible if you are a customer with a strong history of making payments on time, always having money in your account, and regularly depositing money. 

You can generally succeed in getting one overdraft fee refunded per year, as a courtesy from the bank. For assistance, call the M&T Bank customer service line at 1-800-724-2440 or visit a local branch. 

overdraft fee waived

How to avoid overdraft fees with M&T Bank

Overdraft fees are a frustration for a lot of Americans. U.S. banks collected $6.13 billion in overdraft revenue in the first nine months of 2021, according to S&P Global Market Intelligence. That is a lot of money! 

There are many ways you can avoid overdraft fees that do not include overdraft coverage or protection. You can set up alerts on your mobile device through various apps, take advantage of no-fee overdraft apps or get fast cash with a cash advance app. 

Option #1: Get an alert! 

Besides setting up your account to not allow overdrafts, you can download the M&T Bank mobile app. It can alert you when your funds reach a certain low point. That way, you can transfer the funds as you need to. 

The bank also offers MyWay Banking which has no overdraft fees and, in most circumstances, the account isn’t subject to overdraft. If you need more help, M&T’s website offers a long list of tips and tools. 

Overdrafts often happen when you don’t know how much is in your bank account, so this will help keep you updated on the dollar. 

Option #2: Take advantage of no-fee overdraft apps 

A bank’s overdraft tools and services can help keep customers inside a bank’s eco-system, but non-bank options, like fee-free overdraft apps, don’t charge you for overdrafts! Chime’s SpotMe, for example, is free, and once your account is set up it receives a $200 deposit about once a month. You are good to go with overdraft limits starting at $20 and going up to $200. There are no overdraft fees! 

Here is an example of how SpotMe can help you avoid sky-high overdraft fees: 

You are ready to pay for your stylish new $70 shoes, but only $50 is in your account. Where most banks would approve the transaction and sting you with a $36 overdraft fee (turning your $70 shoes into over $100), SpotMe approves the transaction with no fees attached. If your paycheck is consistently put into your account, the negative amount will be balanced by your next paycheck. 

This is a great option for people who are looking to avoid overdraft fees. However, SpotMe is not a long-term tool and doesn’t provide fast cash. If you’re interested in exploring what SpotMe has to offer, you can check out their website. 

Option #3: Get fast cash with a cash advance app 

Downloading a cash advance app will help you avoid traditional payday loans, get access to immediate cash and overdraft fees. 

PockBox, for example, will let you borrow up to $2,500. That is ten times more than the typical amount offered by other cash advance apps. You can apply for a loan even if you have bad credit. The cash will be available as soon as the next business day. 

Short-term borrowing, however, is not a long-term solution. PockBox is a great resource for people who need fast cash to avoid missing important bills and payments. 


Final thoughts and what to do next…

Necessary bills and payments are important not to miss. Don’t mess up your financial situation because of an overdraft fee. You can skip fees, get fast cash and manage your budget without having to miss a payment. 

If you do incur an overdraft, your payment could be declined or you could be charged a $15 fee. 

To avoid paying the extra money, try using tools provided by the bank and third parties. You can use online banking services like linked accounts or limits, get no-free overdraft apps, or use a popular cash advance app like PockBox to get up to $2,500 within one business day to avoid overcharge fees or late fees on urgent bills. 

There are so many resources out there to help you keep your finances on track. Now that you have this knowledge, you can confidently move forward knowing the fees and options you have as a customer of M&T Bank. 

Mitchel Harad
  1. Chime SpotMe is an optional, no fee service that requires a single deposit of $200 or more in qualifying direct deposits to the Chime Checking Account each month and Visa debit card activation. All qualifying members will be allowed to overdraw their account up to $20 on debit card purchases and cash withdrawals initially, but may be later eligible for a higher limit of up to $200 or more based on member's Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. Your limit will be displayed to you within the Chime mobile app. You will receive notice of any changes to your limit. Your limit may change at any time, at Chime's discretion. Although there are no overdraft fees, there may be out-of-network or third party fees associated with ATM transactions. SpotMe won't cover non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. See terms and conditions.
  2. Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.

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