OnBank Rates & Review

OnBank Review

OnBank is the online banking division of M&T Bank, N.A., which is headquartered in Western New York.

M&T Bank, N.A., is a subsidiary of M&T Bank Corp., a large independent bank holding company that had around $69 billion in assets in 2009. OnBank offers virtual banking with customer service by phone or email, and does not have physical branches. OnBank accounts are insured by the Federal Deposit Insurance Corp. (FDIC).

Deposit products

OnBank accounts must be opened online and can only be funded by electronic funds transfer. The bank offers a money market account with no monthly service charge. The account has a variable interest rate that can change periodically. Money market accounts are opened on a restricted status, which means only deposits are allowed until a customer's identity is verified.

Customers also can open a fixed-rate CD with terms ranging from 3 months to 5 years. CD accounts can be opened with a minimum of $500 and the funds can be transferred from another bank. Withdrawals and deposits to OnBank CD and money market accounts can be scheduled between OnBank and other institutions.

OnBank does not offer business accounts, IRAs, custodial, or trust accounts. Joint accounts are available.

Deposit insurance

OnBank deposits are held by parent company M&T Bank, N.A., which is a member bank of the Federal Deposit Insurance Corporation. FDIC coverage for eligible deposits was permanently increased from $100,000 to $250,000 per depositor in July 2010. Joint accounts are insured by FDIC up to at least $250,000 per account holder.

Compare savings account interest rates from OnBank and hundreds of other banks and credit unions at SavingsAccounts.com.