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.  With only one overdraft fee assessed per day, getting things back in line should be much easier. 

The determination of “enough” money to cover a transaction is based on the available balance in your account(s). Refer to the Governing Documents for your account(s) for additional information on the available balance in your account(s) and how M&T determines whether you have “enough” money in your account to cover a transaction.

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.
  • 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.
We will not charge an overdraft fee if the overdraft results from an ATM or one-time debit card transaction from your savings account, as we do not offer an election to pay these transactions on savings accounts when overdrawn.

Choose What's Best for You

Change your Opt-in Elections

You can choose if you'd like ATM and everyday debit card transactions to be approved or declined if you don't have enough money in your account to cover the transaction.

  • Opt out if you don't want 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.
  • 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.
The determination of “enough” money to cover a transaction is based on the available balance in your account(s). Refer to the Governing Documents for your account(s) for additional information on the available balance in your account(s) and how M&T determines whether you have “enough” money in your account to cover a transaction.

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. 
  • $4.95 monthly maintenance charge unless you make at least one deposit, withdrawal, or debit card purchase during the monthly service charge cycle.

 

 

 

If you do not have sufficient funds available in your account to cover a transaction, the transaction will be declined in most cases. In the case that your account is overdrawn, you will not be charged an overdraft fee. MyWay banking accounts are not eligible to be linked to an Overdraft Line of Credit.
 

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.

You must have enough funds or credit available in your linked account for the transfer to occur. Overdraft Line of Credit and M&T Visa Credit Card are subject to credit approval. Fees may apply for the use of overdraft protection services. See your line of credit, credit card, or deposit account agreement for complete details.

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.

Overdraft Line of Credit Link

$8 transfer fee per day for overdraft protection ,

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).

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.

There is no transfer fee for automatic overdraft transfers to a Power Checking account or a MyChoice Premium Checking account.
There is no transfer fee for automatic overdraft transfers to a Power Checking account or a MyChoice Premium Checking account.

Credit Card Link

$8 transfer fee per day for overdraft protection ,

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.

There is no transfer fee for automatic overdraft transfers to a Power Checking account or a MyChoice Premium Checking account.
See credit card pricing information for complete Terms & Conditions associated with M&T Bank Visa® credit cards. Consulte la información de precios de tarjetas de crédito para conocer los Términos y Condiciones completos asociados con las tarjetas de crédito M&T Bank Visa® en español.  

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.

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.

M&T Bank Alerts are available for your M&T Card through M&T Online Banking. Suspicious activity alerts notify customers of certain potentially fraudulent activity on their M&T Card. Alerts are designed to be a helpful account management tool, but they do not identify all potential fraudulent activity and are not a substitute for security and fraud precautions including, but not limited to, verifying statements and being aware of your outstanding payments and available balance. For your protection, “suspicious activity” and “card PIN change” email alerts cannot be disabled. M&T Bank is not liable for any losses customers may incur due to an alert not being delivered. Your mobile carrier’s text messaging and data charges may apply.

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.

If selected, your mobile deposit will be immediately available. The fee for this service is 2% of the total check amount ($2 minimum charge). The fee will be deducted from your account following the completion of your deposit. If the deposit is made during our nightly processing, it will not be available to pay debit items that are processed for payment during that night’s processing. However, it would be immediately available for withdrawal.

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
If we pay an overdraft on your account, you must immediately repay us. Whether your overdrafts will be paid is discretionary and we reserve the right not to pay.   
We will not charge an overdraft fee if the overdraft results from an ATM or one-time debit card transaction from your savings account, as we do not offer an election to pay these transactions on savings accounts when overdrawn.
Unless otherwise specified, all advertised offers and terms and conditions of accounts and services are subject to change at any time without notice. After an account is opened or service begins, it is subject to its features, conditions and terms, which are subject to change at any time in accordance with applicable laws and agreements. Please contact an M&T representative for details.
MyWay Banking from M&T Bank® is considered a Connecticut Basic Banking Account.
The determination of “enough” money to cover a transaction is based on the available balance in your account(s). Refer to the Governing Documents for your account(s) for additional information on the available balance in your account(s) and how M&T determines whether you have “enough” money in your account to cover a transaction.
See credit card pricing information for complete Terms & Conditions associated with M&T Bank Visa® credit cards. Consulte la información de precios de tarjetas de crédito para conocer los Términos y Condiciones completos asociados con las tarjetas de crédito M&T Bank Visa® en español.  
There is no transfer fee for automatic overdraft transfers to a Power Checking account or a MyChoice Premium Checking account.
M&T Bank Alerts are available for your M&T Card through M&T Online Banking. Suspicious activity alerts notify customers of certain potentially fraudulent activity on their M&T Card. Alerts are designed to be a helpful account management tool, but they do not identify all potential fraudulent activity and are not a substitute for security and fraud precautions including, but not limited to, verifying statements and being aware of your outstanding payments and available balance. For your protection, “suspicious activity” and “card PIN change” email alerts cannot be disabled. M&T Bank is not liable for any losses customers may incur due to an alert not being delivered. Your mobile carrier’s text messaging and data charges may apply.