Overdrafts - what you need to know for your personal checking account
Here at M&T, we understand things don't always go as planned. We offer many options to avoid fees when you are low on funds.{{d1030*}} With only one overdraft fee assessed per day, getting things back in line should be much easier.
What happens when you overdraw your personal checking account
At M&T's discretion, we will authorize and pay an overdraft for a transaction that overdraws your account using checks, other transactions that use your checking account number, or automatic bill payments. We do not authorize and pay overdrafts for ATM or everyday debit card transactions unless you ask us to.
M&T charges an overdraft fee of $15 per day (maximum of one fee per day) on your personal checking account, even if multiple transactions overdraw your account. You will not be charged if:
- The amount of the item is less than $5
- Your account has already been charged an overdraft fee for items processed for payment on that business day
- The overdraft resulted from an ATM or everyday debit card transactions from your checking account, and you have not elected for us to authorize and pay these transactions.{{d1144*}}
- The overdraft results from an ATM or one-time debit card transaction that was originally authorized while your available balance was sufficient to pay the transaction, based on the final amount of the transaction we receive from the merchant.
- You have a MyWay Banking account (no overdraft fees are assessed on this account and it is not eligible to be linked to an Overdraft Line of Credit).
- Even if some transactions are exempt from an overdraft fee on a particular day, you may nonetheless be charged an overdraft fee if other items we paid that day reduced your available balance to a negative amount or further decreased an already negative balance to a larger negative amount.
Choose What's Best for You
Make or Change your Overdraft Election
You can choose if you’d like to authorize M&T in its discretion to approve ATM and everyday debit card transactions if you don’t have enough money1 in your account to cover the transaction
- Opt out if you don’t want to authorize M&T to pay ATM and everyday debit card transactions when you don’t have enough money in your account. The transaction may be declined and you will not be charged an overdraft fee for the item. Note, you’re opted-out as default.
- Opt in to allow M&T to approve these transactions at our discretion, but you may be charged an overdraft fee based on the terms of your account.
*Our telephone option can only be used to Opt-Out of authorizing M&T to pay ATM and everyday debit card transactions. If you would like to opt-in, please visit a branch, use our online option or fill out the form and mail-in.
Consider a MyWay Banking Account
Open or change an existing checking account to MyWay Banking from M&T Bank®.
- A checkless account with no overdraft fees - only spend what you have in your MyWay Banking account.{{d518*}}
- $4.95 monthly maintenance charge unless you make at least one deposit, withdrawal, or debit card purchase during the monthly service charge cycle.
Options for Overdraft Protection
Link Your M&T Accounts for Overdraft Protection
An M&T savings account, M&T money market account, M&T credit card, or M&T Overdraft Line of Credit account can provide overdraft coverage for your checking account.{{d142*}}
Savings Link
No additional fee for overdraft protection
Use funds from your linked M&T savings or money market account. M&T transfers the amount needed to cover the overdraft on your checking account with funds from your linked savings or money market account - at no additional fee.
MyWay Banking accounts are not eligible to be linked to a Savings account.
Overdraft Line of Credit Link
$8 transfer fee per day for overdraft protection {{d1058*}},{{d1059*}}
You can apply for a line up to $25,000 with no annual fee so your transactions will be covered up to your available credit limit. Transfers are subject to an Annual Percentage Rate and an $8 transfer fee (charged for each transfer but no more than once per day).{{d1059*}}
You will be billed monthly for overdraft transfers and any applicable interest charges and fees on your Overdraft Line of Credit statement that is combined with your monthly checking account statement.
MyWay Banking accounts are not eligible to be linked to an Overdraft Line of Credit.
Credit Card Link
$8 transfer fee per day for overdraft protection {{d1059*}},{{d58*}}
Use the available credit from your M&T credit card to cover the cost of your transactions, up to your available credit limit. Transfers are subject to a variable Annual Percentage Rate and will incur an $8 transfer fee (charged for each transfer but no more than once per day).
You will be billed monthly on your credit card statement for overdraft transfers and other charges made using your M&T Visa Credit Card.
MyWay Banking accounts are not eligible to be linked to a Credit Card.
Tools to Track and Manage Your Finances
Track your money & plan ahead
M&T offers digital tools to help you track and budget your money. With M&T Online & Mobile Banking:
- Check your balances (your balance may not reflect your most recent activity)
- Review your transaction activity
- Deposit checks, transfer money, and pay bills
- Enroll in MoneySmartTM our easy-to-use budgeting tool that lets you view your M&T and non-M&T accounts in one place
Sign up for M&T Alerts
Get notifications about your account status and important activity, including low balance alerts. You can also sign up for suspicious activity alerts.{{d1060*}}
Once you are an M&T Online Banking customer, you can enroll in alerts by logging in and navigating to M&T Bank Alerts in the Services menu. From the M&T Mobile Banking app, choose Alerts from the Menu icon on the top left.
Set up direct deposit
Set up direct deposit for quicker access to your money. The sooner your monthly deposits post to your account, the faster the money becomes available - helping you plan your spending and helping to avoid overdraft fees.
Use M&T Flash Funds
With online banking or banking through the M&T mobile app, you can quickly deposit checks by entering in the check amount and snapping a photo of the front and back of the check. For a fee, funds from a qualifying check can be immediately available for withdrawals or purchases.{{d534*}}
Understanding Overdraft - FAQ
An overdraft occurs when you do not have enough available funds in your account to cover a transaction, but, in our discretion, we pay the transaction as a courtesy for you. However, this means you may incur a fee.
An NSF occurs when you don’t have enough money in your account to pay for an item and we decline the transaction. In that case, you will not be charged a fee.
When managing your finances, it may be helpful to understand our posting order. The order of when banks post transactions can affect your account balance and whether or not you are charged fees, such as an overdraft fee. Generally:
- M&T posts credits before debits in a given day
- M&T posts items chronologically, if that information is available
- If it is not clear what the chronological order is, M&T will post debits in lowest to highest order
- Fees are posted last in a given day
For more details, read our What You Need to Know about Overdrafts and Overdraft Fees form.
