Like many other large, national banks with retail branches, TD Bank offers accessibility for in-person banking but very low interest rates on its savings accounts. The US subsidiary of the Canada-based TD Group, TD Bank is one of the 10 largest US banks, operating more than 1,000 branches along the east coast stretching from Maine to Florida. Retail locations are open seven days a week. But unless branch access is your primary concern, there are far better savings accounts available elsewhere.
TD Bank’s savings account rates
This bank offers two savings accounts: TD Simple and TD Signature Savings. Neither requires a minimum initial deposit to open, but the TD Simple Savings only earns a 0.02% APY. The TD Signature account can pay out a higher APY on balances of $10,000 or more according to its tiered structure; however, amounts over $250,000 only earn a meager 0.50% APY without the relationship bump rate. The relationship bump rate is an increase to the standard APY earned and is only available to account holders that link their savings account to an eligible TD Bank personal or business checking account, mortgage, home equity or credit card.
TD Bank: At a glance
| Account Name | APY | Bump Rate APY | Minimum deposit | Fees |
|---|---|---|---|---|
| TD Simple Savings | 0.02% | N/A | $0 | $5 |
| TD Signature Savings | 0.01% to 0.50% | 0.01% to 3.00% | $0 | $15 |
Annual percentage yields (APYs) shown are as of Jan. 4, 2023. APYs may have changed since they were last updated and may vary by region for some products.
The TD Signature Savings account relationship bump rate APY ranges from 0.01% to 3.00% and increases in five increments based on the account balance. The initial balance tier is $10,000 to $24,999 which earns a 1.50% APY. The final balance tier -- balances over $250,000 -- earn the highest APY available, which is currently 3.00%.
How does TD Bank’s savings accounts compare with other high-yielding banks?
Both savings accounts require jumping through hoops to have the monthly fees waived. The TD Simple Savings’ APY is below the national average rate and pales in comparison to rates offered by the best online banks. Unless you have a compelling reason to have an account with TD Bank, accounts at another bank will yield better growth. Even with the relationship bump rate, TD’s Signature Savings account “enhanced” APY, starting at 1.50%, doesn’t apply to balances under $10,000. The bottom line: Consumers can find better high-yield savings options at other banks.
Additional savings options at TD Bank
- Standard CDs: TD offers certificates of deposit with terms from three months to five years. There’s a relationship bump rate program that applies a special rate to three standard CD terms, the six-, 12- and 24-month CDs. The relationship bump rate is available for customers that link a qualified TD Bank checking account.
- Step-Rate CD: These can be purchased in a three- or five-year term. This allows one penalty-free withdrawal per term and applies automatic APY increases each year.
- No-Catch CD: This CD allows customers a penalty-free withdrawal of the entire balance before it matures. They can be purchased in six- or 12-month terms.
The bottom line
TD Bank savings accounts present unnecessarily complicated hurdles to growing or maintaining your savings. The monthly fees will detract from your wealth building efforts unless you maintain significant minimum balance levels -- $300 on the low end and $10,000 for the TD Signature Savings account. There are additional ways to waive the monthly fees, such as recurring deposits of $25 or more. Even with the relationship bump rate, the APYs paid pale in comparison to other banks that simplify the process of establishing a new account and earning competitive rates. Savers should look for alternative high-yield savings accounts.
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