The interest rates you can earn through a TD Bank savings account depends on the account you choose, your account balance and your relationship with the bank. Opting for the Simple Savings account will earn you 0.02% APY, regardless of the account balance, while the Signature Savings account offers higher APY opportunities for accounts that have at least a $10,000 balance. Nevertheless, you can find higher rates still from other financial institutions across the country online.
Annual percentage yields (APYs) and account details are accurate as of March 6, 2023.
TD Bank interest rates
The TD Simple Savings serves as the basic option with one flat 0.02% APY on all balances.
At the top end, the Signature Savings account sizzles with higher, tiered interest rates as long as you have more than a $10,000 balance. Rates start at a dismal 0.01% APY for deposits under $10,000 but jump up quickly, depending on whether you qualify for the standard rate or the relationship bump.
The relationship bump requires that you have one other active TD Bank account and link it to your savings. If you don’t currently already have an eligible account, you could always apply for one. Eligible accounts include:
- Personal credit card.
- Personal mortgage.
- Personal home equity loan.
- Personal or small business checking account with a monthly direct deposit or at least three monthly transactions (deposits, withdrawals, transfers or payments).
Although there is no minimum deposit requirement, higher balances garner higher interest rates. The maximum 3.00% APY applies if you link another TD Bank account and maintain an account balance of $250,000.
Minimum deposits and monthly fees
You don’t need a minimum deposit amount to open either savings account but maintaining a set balance is one way you can avoid the monthly fees.
Perhaps the easiest way to avoid the $5 monthly fee on the Simple Savings account is to maintain a minimum daily balance of $300. Other ways include: being aged 62 and above or aged 18 and below; opening the account as an IRA; or linking the account to a TD Student Checking, TD Relationship Checking or TD Beyond Checking.
The Signature Savings account requires a minimum daily balance of $10,000 to avoid the $15 monthly fee. You can also skirt the fee by linking an eligible TD checking account or opening the savings account as an IRA.
How much can you earn?
Earning money on your money is the whole point of a savings account, which makes the Simple Savings account less appealing than the Signature Savings account.
How does TD Bank compare to other banks
Without the relationship rate bump, TD Bank’s savings accounts come with very low APYs. When compared to the national rate average of 0.35% (as of Feb. 21, 2023), it’s clear that you can find higher APYs elsewhere. Even with the relationship bump, you’ll likely find better rates of return from high-yield savings (HYS) accounts offered by other banks, no matter your balance. For instance, Ally’s Online Savings Account offers an APY of 3.40% on any account balance.
Other savings options at TD Bank
If the savings accounts on offer aren’t a good fit but you want to stick with TD Bank, you can also look at certificates of deposit (CDs).
TD Bank CDs cover the normal term range of three months to five years. The highest rate option is currently a competitive 4.25% APY attached to a 24-month Bump Up CD with a deposit of at least $10,000.
About TD Bank
TD Bank operates over 1,100 branches and is the ninth largest bank in the country by assets. The financial institution can trace its origins back to 1855, but the 1955 merger between the Bank of Toronto and the Dominion Bank led to the TD Bank (Toronto – Dominion Bank) we know today.
Frequently asked questions (FAQs)
Savings accounts range from traditional savings accounts to high-yield accounts, money market accounts, CDs and specialty savings accounts.
The right savings account for your situation will align with your financial goals. For example, those seeking to maintain liquidity and enjoy higher interest rates might opt for a high-yield savings account. Here’s more detail on how to make money on your money.
A checking account is designed for daily access to your funds. Checking accounts may come with debit cards and physical checks to make spending easy, and typically don’t offer an APY.
In contrast, savings accounts generally offer interest rates and aren’t designed to support daily transactions. The Federal Reserve used to impose a withdrawal limit of six transactions per month on savings accounts. It released this limit in 2020, but independent financial institutions may still apply this rule.
A savings account gives you easy access to your funds when you need them. But the separation from your checking account means you are less likely to spend this cache. A potentially robust APY also offers the chance to earn interest on your deposits.
