TD Bank: 2023 Banking Review

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TD Bank

TD Bank calls itself “America’s Most Convenient Bank.” But sometimes convenience comes at a cost. Despite offering a full suite of banking and borrowing products — including CDs and mortgages — TD charges hefty overdraft fees on some checking accounts, and not all of its savings rates are as competitive as those of other banks.

There are a few reasons you may consider TD Bank — it offers in-person banking and is open on Sundays. But if you’re looking for the best savings and CD rates, you’ll need a checking account to qualify for relationship rates, and even then, most rates are fairly low.

Here’s our take on TD Bank and what to know before opening an account.

What we like

  • Full suite of banking and borrowing services and products
  • Access to more than 1,110 physical branches and more than 2,600 ATMs
  • Customers with TD checking accounts can take advantage of competitive CD and borrowing rates
  • Offers bonus for new checking account customers up to $300

What we don’t like

  • Still charges overdraft and monthly fees
  • Highest savings rates are only available with higher deposits
  • Some accounts cannot waive fees — which can add up quickly 
  • Low interest rates compared to other banks that offer CDs and savings accounts 

Who is TD Bank suited for?

TD Bank offers the convenience of all the banking products and services you need under one roof. And if you’re already a TD Bank customer, you’ll benefit from higher rates that are just as competitive as online banks for some TD Bank accounts. So, if you want access to physical branches and you live within the bank’s network — East Coast, Mid-Atlantic, Carolinas and Florida — this can be a good pick, especially if your location is open on Sundays.

It’s important to note that some states have a significantly smaller presence than others. For example, TD has more than 300 locations in Massachusetts but just 12 in Rhode Island. But if you’re not interested in physical branch service, you may be better off considering online banks that come with fewer fees and more perks.

TD Bank checking accounts

Overview

TD Bank offers five different checking accounts, but none of them compete with the best checking accounts. We like that TD makes it easy to avoid fees on its Convenience Checking account — just maintain a $100 minimum daily balance — and that it offers a free checking account for seniors. TD also offers bonuses for new customers, typically between $100 and $300, in exchange for making a certain amount of direct deposits after you open an account. But its checking accounts don’t do much else.

You’ll need to read the fine print to make sure you opt out of any overdraft protection because the bank charges a $35 overdraft fee on some of its accounts. You also want to make sure you can waive monthly fees easily.  Here’s a snapshot of the checking accounts TD offers:

Account features

TD Convenience Checking TD Simple Checking TD Beyond Checking TD Essential Banking
Best for Low minimum daily balance and discounts No minimum balance  No ATM fees  No overdraft fees
APY None None 0.01% None
Monthly fee $15 $6 $25 $4.95
Requirements to waive the fee Maintain a $100 minimum daily balance None, the fee is mandatory $5,000 in direct deposits each statement cycle, or $2,500 minimum daily balance or $25,000 across all TD accounts Must be between 13 and 17 years old
Rates as of May 15, 2023.

Pros

  • Wide range of checking accounts to choose from 

  • Several ways to waive monthly maintenance fees

  • Low minimum balance requirement to avoid Convenience Checking fee

  • New customers can score a sign-up bonus up to $300

Cons

  • Still charges overdraft fees for select accounts

  • Monthly fee is mandatory for TD’s Simple Checking account

  • Pays little to no interest

  • Steep minimum balance requirement to avoid certain fees, such as ATM charges

TD Bank savings accounts

Overview

TD Bank offers two savings accounts. Its Simple Savings account serves as a traditional savings account with very few perks and only offers a 0.02% APY — one of the lowest savings rates available right now. As long as you make 12 recurring transfers of at least $25 for the first year, you can waive the $5 monthly fee. 

On first glance, TD Bank’s Signature Savings account seems like a major win over other big banks. But a closer look shows a different story. While you can earn up to 3.51% APY with the bank’s Signature Savings account, it’s important to read the fine print — earning that rate requires a minimum daily balance of $250,000. And while that 3.51% is certainly impressive for a big bank, there are plenty of online banks that offer more competitive rates with fewer requirements (in some cases, no minimum deposit is even required). 

If you have a smaller balance, you’ll earn a smaller yield. For example, a balance between $10,000 and $24,999 currently earns a 2.00% APY if you have a TD checking account to qualify for this bump rate. Balances below this earn 0.01% APY — an even lower rate than the Simple Savings account.

TD Simple Savings TD Signature Savings
APY 0.02% Bump rate for customers with other TD products that increases with a bigger balance – as high as 3.51% for deposits of $250,000 or more
Monthly fee $5 $15
Requirements to avoid fees Maintain a minimum balance of $300 (fee waived for certain age groups) Maintain a $10,000 minimum balance, or open a linked TD checking account or open the savings account as an IRA
Rates as of May 17, 2023.

Pros

  • Fees can be avoided if you meet certain requirements 

  • No minimum deposit requirement to open

  • ATM access

  • Link with a TD checking account for overdraft protection and a better savings rate

  • No minimum deposit

Cons

  • Monthly maintenance fee

  • Highest savings rates are reserved for customers with larger balances

  • Better savings rates can be found elsewhere

  • No checks available for savings account

TD Bank CD accounts

Overview

If you do have a checking account with TD, you may be able to lock in a competitive certificate of deposit. A TD checking account qualifies you for a bump rate that is much higher than the CD’s standard APY. But only the six-, nine- and 12-month CDs offer competitive bump rates worth considering.

You can choose CD terms ranging from six months up to five years, but its rates are less than CNET’s average. It’s also worth noting that TD’s standard CD rates aren’t available on the site

TD also offers two alternative CDs. There’s a no-penalty CD — dubbed the No-Catch CD, since you can make one withdrawal during your term without paying any penalty. But there is a catch: It requires a $250 minimum deposit.

Additionally, TD has a step-rate CD with three-year and five-year terms, which offers an interest rate increase annually. However, the standard starting rate — 0.05% — is so low that you’re better off looking elsewhere. And a minimum $250 deposit is required. 

Account features

Early withdrawal penalties for Choice CDs are based on the term:

Term Penalty
Less than 3 months All interest
Greater than 3 months, less than 1 year 3 months of interest
Greater than 1 year, less than 2 years 6 months of interest
Greater than 2 years, less than 3 years 9 months of interest
Greater than 3 years, less than 4 years 12 months of interest
Greater than 4 years, less than 5 years 18 months of interest
Greater than 5 years 24 months of interest

TD Choice CD rates

Term Standard APY Bump Rate APY 
3 months 0.05% 0.05%
6 months 1.00% 3.51%
9 months 1.00% 5.00%
12 months 1.00% 3.75%
18 months 0.05% 0.05%
24 months 0.05% 0.05%
3 years 0.05% 0.05%
5 years 0.05% 0.05%
Rates as of May 17, 2023 and vary by location.

Pros

  • High-yield, bump-up and step-up CDs available

  • Competitive rates on certain promotional CDs

Cons

  • Limited CD terms available

  • Requires a $250 minimum deposit

  • Low CD rates

  • Requires a TD checking account to get the best rates

Overdraft fees

We don’t like that TD Bank still has overdraft fees. You can get charged a $35 fee if your account is overdrawn by more than $50 on its Convenience Checking Account, for example, and if you try to make three purchases that day, you could get hit with a whopping $105 per day ($35 x 3). But you won’t be charged a fee if it’s less than $50. 

If you don’t want to worry about overdraft fees, TD’s Essential Banking account is a better option: There are no overdraft fees, but there is a mandatory $4.95 monthly fee — which is much less than TD’s overdraft charge. There are many other banks that don’t charge overdraft fees, including Alliant Credit Union and Ally

Other banking products

TD offers a range of other products, and if you already have an account with TD Bank, you may receive rate discounts. Here’s what else is currently available on certain loans:

  • First mortgages: Fixed-rate and adjustable-rate mortgages, including conventional FHA, VA, jumbo and low down payment loans
  • Second mortgages: Home equity loans and HELOCs
  • Credit cards: A lineup that includes traditional cashback and rewards cards, along with secured credit cards. And TD has two new low-credit-limit offerings that charge set fees instead of variable interest

Banking experience

TD offers a rarity in the banking industry: Many of its physical branches are open on Sundays. When it comes to digital tools, the bank offers everything you would expect of a big bank that has the resources to invest in new technology — including a website and mobile app with common banking features. However, the bank’s mobile app performed below the industry average in J.D. Power’s most recent mobile app satisfaction study.

Customer service

TD Bank offers 24/7 customer service at 1-888-751-9000. You can also connect with live agents via the bank’s mobile app. Additionally, the bank offers help via Facebook Messenger and Twitter’s direct messaging. If you need to talk to someone face to face, use the bank’s online locator tool to find a branch near you. Some TD Bank branches are open on Sundays for limited hours, which most banks don’t offer. Keep in mind that branches are limited to 16 states.



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