October 31, 2020

TD Bank savings rates: higher than APY for most brick-and-mortar banks

Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, but our reporting and recommendations are always independent and objective.

TD Bank (Member FDIC) has two savings accounts: Beyond Savings and Simple Savings. The better account for you depends on how much money you plan to keep there.

Note that while TD Bank pays higher rates than most brick-and-mortar banks, you can find better rates with online banks.

Standard savings rates

At the very minimum, you’ll earn the following standard savings rates with a TD Beyond Savings Account:

Balance Standard APY
$0.01 – $19,999.99 0.01%
$20,000 – $249,999.99 0.05%
$250,000 + 0.10%

Relationship savings rates

TD Bank makes it pretty easy to qualify for a “relationship rate,” or a higher rate as a reward for having another TD Bank product.

You’ll earn the following relationship rates when you link your TD Beyond Savings Account to a TD Bank personal checking account, small business checking account, credit card, mortgage, or home equity loan:

Balance Relationship APY
$0.01 – $19,999.99 0.05%
$20,000 – $49,999.99 0.15%
$50,000 – $99,999.99 0.20%
$100,000 – $249,999.99 0.25%
$250,000 + 0.35%
  • Details
  • Pros & Cons

    • Earn $200 sign-up bonus when you deposit $20,000 in new funds in the first 20 days and maintain the balance for at least 90 days
    • Waive $15 monthly service fee by maintaining $20,000 minimum daily balance, OR linking to a TD Beyond Checking account
    • Tiered interest rates
    • Interest compounded daily
    • FDIC insured
    Pros
    • Earn competitive APY when you link to another eligible TD Bank account
    • Earn higher APY with higher balance
    • Mobile check deposit
    • No minimum opening deposit
    Cons
    • $15 monthly service fee
    • Low APY if you don’t link to another TD Bank account

    You need a relatively high balance to earn a high interest rate with TD Bank, but its rates are better than what most brick-and-mortar banks pay. If you’re open to banking online, though, then you can find online banks that pay higher rates with no minimum balance requirements.

    The TD Simple Savings Account pays 0.05% APY on all balances.

  • Details
  • Pros & Cons

    • Earn $200 sign-up bonus when you deposit $20,000 in the first 20 days, and maintain the balance for 90 days
    • No monthly service fee for students, adults under age 24 or age 62 or older
    • Waive $5 monthly service fee by maintaining $300 minimum daily balance
    • No monthly fee for the first 12 months if you make recurring $25 monthly deposits
    • Interest compounded daily
    • FDIC insured
    Pros
    • No monthly fee for students, or for adults under age 24 or age 62 or older
    • No monthly fee for the first 12 months, with recurring monthly deposits of $25
    • Mobile check deposit
    • No minimum opening deposit
    Cons
    • Low APY
    • $5 monthly service fee

    Your decision between the two savings accounts could come down to how much money you plan to keep in the account. You’ll earn a higher rate with TD Simple Savings if you a) keep under $20,000 in savings, and b) don’t qualify for relationship rates. 

    How TD Bank savings rates compare

    We compared TD Bank savings rates with what you’ll earn with two other brick-and-mortar banks along the East Coast: Bank of America and Wells Fargo.

    td bank logo



    TD Bank


    bank of america logo



    Bank of America


    wells fargo logo



    Everyday Checking


    Savings APY

    0.01% to 0.35% APY

    Savings APY

    0.01% to 0.05% APY

    Savings APY

    0.01% to 0.02% APY

    Savings sign-up bonus

    $200

    Savings sign-up bonus

    None

    Savings sign-up bonus

    None

    Minimum deposit

    $0

    Minimum deposit

    $100

    Minimum deposit

    $25

    Open an account Open an account Open an account

    TD Bank savings rates vs. Bank of America savings rates

    Bank of America Advantage Savings pays 0.01% APY on most balances, but you can earn a little more if you qualify for Preferred Rewards. The Preferred Rewards tiers are as follows:

    • Gold: Earn 0.02% APY with a three-month average combined balance of $20,000 to $49,999.99 in all Bank of America bank accounts or Merrill investments
    • Platinum: Earn 0.03% with a three-month average combined balance of $50,000 to $99,999
    • Platinum Honors: Earn 0.05% with a three-month average combined balance of $100,000 or more

    Even Bank of America’s Preferred Rewards rates are pretty low. You may as well open a TD Simple Savings Account and earn 0.05% APY, regardless of your balance. Or if you plan to maintain a high balance, open a TD Beyond Savings Account to earn more than Bank of America’s maximum rate.

    TD Bank savings rates vs. Wells Fargo savings rates

    Wells Fargo pays low rates on savings. You’ll earn just 0.01% APY with the Wells Fargo Way2Save® Savings Account, and 0.01% to 0.02% APY with the Platinum Savings Account.

    You’re better off opening a TD Simple Savings Account and earning 0.05% APY, or a TD Beyond Savings Account if you plan to maintain at least a $20,000 balance. Either way, you’ll earn more than you would with Wells Fargo.

    Get the latest Bank of America stock price here.

    Disclosure: This post is brought to you by the Personal Finance Insider team. We occasionally highlight financial products and services that can help you make smarter decisions with your money. We do not give investment advice or encourage you to adopt a certain investment strategy. What you decide to do with your money is up to you. If you take action based on one of our recommendations, we get a small share of the revenue from our commerce partners. This does not influence whether we feature a financial product or service. We operate independently from our advertising sales team.

    Source Article