In this article, we’ll explore the best certificate of deposits and CD rates and data for M&T Bank in April 2024. When evaluating where to park your cash, it’s important to research certain criteria M&T Bank‘s CD rates, yields, yield to maturity, maturity terms, maturity dates, coupon frequency, and whether it’s a callable or non-callable CD.
M&T Bank CD Rates
The CD rate is one of the first things to check when deciding whether to buy a brokered CD from M&T Bank. The interest rate of a brokered CD is the fixed interest rate that the CD will pay to the investor over its term.
M&T Bank CD rates are obtained by signing up M&T Bank and depositing money into a CD account there. However, you can get higher M&T Bank CD rates simply by buying CDs from a brokerage instead of M&T Bank itself. Brokered CDs are bank CDs bought on a brokerage, and you can buy M&T Bank CDs at most brokerages.
CD Rates can span maturity terms of 3-months, 6-months,, 1-year, 18-months, 2-years, 3-years, 5-years, 10-years and even more than 20-years.
The latest and best rates we have identified for M&T Bank are:
| Maturity | Yield (%) | Coupon (%) | Coupon Frequency | Callable | CUSIP |
|---|---|---|---|---|---|
| 04/26/2024 (6 days) | 4.343 | 5 | At Maturity | No | 564759SK5 |
| 05/23/2024 (33 days) | 4.57 | 4.8 | Semi-annually | No | 564759RB6 |
| 05/28/2024 (38 days) | 4.607 | 4.85 | Semi-annually | No | 564759SA7 |
| 05/30/2024 (40 days) | 4.922 | 5.25 | At Maturity | No | 564759SR0 |
| 07/31/2024 (102 days) | 5.191 | 4.65 | Semi-annually | No | 564759RZ3 |
| 08/28/2024 (130 days) | 5.068 | 4.85 | Semi-annually | No | 564759SB5 |
| 01/31/2025 (286 days) | 4.864 | 4.5 | Semi-annually | No | 564759RX8 |
| 03/17/2025 (331 days) | 4.293 | 4.95 | Monthly | No | 55316CCR5 |
| 06/02/2025 (408 days) | 4.941 | 4.9 | Semi-annually | No | 564759ST6 |
| 02/01/2027 (1017 days) | 4.401 | 4 | Semi-annually | No | 564759RV2 |
Yield represents APY/YTM
The above information represents Yield Alley’s best research and effort in summarizing information from brokered CD marketplaces on major brokerages, including Fidelity, Schwab, Vanguard, E*Trade, TD Ameritrade, and Merrill Edge. Yield information can vary from day to day, and investors should check a specific brokerage to see a bank CD’s availability and pricing (yields or APY/YTM (Yield To Maturity)).
You can compare these CD rates with the top brokerage CD rates.
Why are M&T Bank CD Rates Higher on a Brokerage?
Brokered Certificates of Deposit (CDs) typically offer higher interest rates compared to traditional bank CDs because brokerages often negotiate better rates with banks on behalf of their customers.
M&T Bank might also be inclined to offer higher rates for brokered CDs as a strategy to broaden their customer base and raise more funds. By partnering with brokerages, M&T Bank can access a wider pool of potential investors, justifying the higher rates offered on these CDs as a way to attract more capital.
What is a M&T Bank Brokered CD?
When you purchase a brokered CD from M&T Bank, you essentially lend money to them for a specified period, typically ranging from a few months to several years. You’ll receive regular interest payments based on the yield in return for this loan.
The CD rate is expressed as a percentage and is determined by the issuing bank or financial institution at the time of issuance.
Please note that when buying new-issue CDs (the first time a certain CD is being sold), the yield and the coupon rate of the CD are the same. However, when buying a CD on the secondary market, be sure to compare the yield and the coupon rate, as these will be different since the yield will depend on the CD’s value when you purchase it.
In addition, traditional CDs will typically re-invest the interest earned, while brokered CDs do not typically offer compounding interest. We encourage readers to double-check the CDs to confirm whether interest is compounded.
M&T Bank CD Maturity Terms
It’s also important to know when your brokered CD matures. A CD maturity refers to the end date or the point at which a certificate of deposit (CD) reaches its full term.
M&T Bank may issue different CDs for a variety of reasons. Some of these CDs may even have the same maturity date as one another but with different coupon rates or other features.
Between now and the maturity date, the CD will accrue interest over this period at a predetermined rate.At the maturity date, the CD holder can withdraw the principal and any interest earned or renew the CD for another term.
Taxes on M&T Bank Brokered CDs
It’s important to note if you earn interest income from M&T Bank brokered CDs, it’s subject to federal, state, and local income taxes. Certain investments like Treasury Bills, government money market funds, Treasury ETFs, and floating rate ETFs have a portion of their interest income exempt from state income taxes.
M&T Bank Key Details
M&T Bank was established on . It became a Federal Deposit Insurance Corporation (FDIC) member on the same day, and its FDIC certification number is .
M&T Bank's main office address is , , .
Does M&T Bank Have FDIC Coverage?
M&T Bank has an active Federal Deposit Insurance Corporation (FDIC) certification.
If you purchase a CD from M&T Bank directly or through a brokerage, you will be entitled to $250,000 worth of FDIC insurance. If M&T Bank defaults, the FDIC, which is backed by the full faith of the United States government, will compensate you up to $250,000.
M&T Bank Brokered CDs Fees
There is usually no fee to purchase a new issue brokered CD from M&T Bank with a brokerage.
For secondary trades of M&T Bank brokered CDs, your brokerage firm may charge you a fee for the transaction, usually a $1 fee per CD.
Should I Buy A Brokered CD on a Brokerage or Directly From M&T Bank?
If you’re choosing between a CD directly from M&T Bank vs buying the CD from a brokerage, our opinion is that investors should strongly consider brokered CDs over bank CDs for several reasons:
- Liquidity.Unlike traditional CDs, brokered CDs can be freely traded on the secondary market. The advantage of this is that you can sell your brokerage CD without facing early withdrawal penalties. However, selling brokered CDs usually incurs a fee from your brokerage, and the value that you sell your CD for may be less than what you purchased it for.
- More options compared to bank CDs.M&T Bank brokered CDs will often have higher coupon rates and yields compared to traditional CDs. They’ll also have a much wider range of maturities, making building a CD ladder easier.
- Guaranteed interest income.If you hold your M&T Bank brokered CD to maturity, you will be guaranteed your principal and a fixed amount of interest income. Unlike other products, such as money market funds and Treasuries, the coupon rate on CDs does not change.
- Extremely low risk. CDs are a great choice to safeguard your capital, since the rates of return are fixed and guaranteed, and your funds are backed by the FDIC.
- Expanded FDIC insurance. You will be insured for $250,000 for each CD per bank you purchase from a brokerage. This means you can have expanded FDIC coverage beyond just the $250,000 you would be covered for if you bought a CD from your traditional bank.
- CD Laddering:Consider implementing a CD ladder strategy, which involves buying a series of CDs with different maturity dates. A brokered CD ladder will offer much more flexibility with more maturity terms and higher yield opportunities compared to traditional CD ladders.
We believe investors are better off with tools that give them more flexibility and higher yields. Brokered CDs are generally superior to traditional CDs.
If you want to consider alternatives to CDs that pay higher rates and have even greater liquidity, with the same amount of risk, you may want to consider Treasury Bills, money market funds, Treasury ETFs, I Bonds, TIPS, or Floating Rate Notes, depending on your particular financial situation.
How To Buy CDs From Your Brokerage
If you’ve decided to buy a brokered CD from M&T Bank, you need to sign up for a brokerage account such as Vanguard, Fidelity, Charles Schwab, Merrill Edge, E*Trade, or TD Ameritrade.
YieldAlley has created multiple step-by-step tutorials with helpful screenshots on how to buy a M&T Bank brokered CD on various brokerages.
Should I Build a Brokered CD Ladder?
A brokered CD ladder is a strategy that involves investing in a series of CDs with varying maturities.
This approach allows you to spread out your investment over a range of periods to minimize interest rate risk and also have consistent access to cash should you need it. As each CD matures at different intervals, you can access your funds periodically without penalty.
We suggest considering this strategy, as brokered CDs offer higher interest rates than traditional CDs and savings accounts while still providing a low-risk investment option.
Furthermore, using a brokerage firm allows you to access a wider range of CD options from different banks such as M&T Bank, increasing your potential options for a more flexible CD ladder.
Are M&T Bank Brokered CDs the Best Option?
As an FDIC-insured bank, buying CDs on M&T Bank is safe. But We think if you had to choose between a M&T Bank brokered CD and getting a CD directly from M&T Bank, go with the brokered CD! You’ll get higher rates and more liquidity. With a single brokerage account, you can also purchase CDs from a variety of other different banks, and manage all your investments in one place. Much more handy than managing multiple bank CDs.
If you’re interested in how to get the highest cash returns on ANY platform, we created Cash Playbooks to teach you just that. Compared to your bank’s high-yield savings account or CD, our playbooks will walk you through how to buy cash investments that pay higher rates with ultra low-costs, are safe and backed by the U.S. government, and can be sold at any time for cash.
YieldAlley has compiled brokerage cash return playbooks to help you determine whether M&T Bank brokered CDs are the best investments for your cash.
