I set up external transfers in order to pay a line of credit account at M&T. I closed checking and savings accounts years ago because of the terrible service and outrageous fees. didn't realize that they held transferred funds in order to apply insufficient funds fees until I came upon this site. This is exactly what happened to me! When I set up the account for external transfers, the test deposit showed up the next day. When I scheduled the monthly transfer, I gave it three days (because the test deposit showed up in one day) and guess what, it showed up the day AFTER the payment was due. This bank should be shut down or at the very least penalized for their illegal practices.
After receiving $300+ in fines over the course of a few days from this bank, I figured I'd have to step up and say something. I've used M&T my whole life, but that's only because I have everything hooked up to my M&T bank account and it's too much of a hassle to switch everything elsewhere.
Don't get me wrong; M&T has its upsides. The 24-hour ATM cash/check deposits is a huge time-saver. It's so convenient that it almost makes up for their awful hours, which are so short that I'm almost never actually able to make it in due to my own work schedule.
Where the bank really gets me is the customer service. Time and time again I've had to deal with people at the banks talking down to me, ignoring my issues, and blatantly treating me like they don't care. Frankly, it's disgusting.
I know banks are typically at least a little greedy, but don't ever go into even a dollar of debt with M&T. Once you're in debt, they will do everything in their power to keep you in debt with constant, ridiculous fees that they won't tell you about until it's far too late.
M&T doesn't treat me like a customer, or even really like a person. They treat me like a sack of money, and that's not what I need in a bank.
Don't even think of opening an account with M&T Bank. The customer service is horrible. In my opinion, this is the worst bank I have ever had to deal with. They freeze your account, close your account, charges annoyingly high fees and they don't even bother to inform you. This is my personal experience, learn from it and stay wise, rather than going through what I have gone through.