What TD Bank charges for savings accounts

TD Bank does charge monthly maintenance fees on most of its savings accounts, but the amount depends on which account you open and how you use it. The most common savings product is the TD Savings Account, which carries a $2.50 monthly maintenance fee that you can avoid by maintaining a minimum daily balance of $300 or more. If your balance drops below that threshold, the fee posts to your account each month.

TD also offers the TD Money Market Savings Account, which has a $25 monthly maintenance fee that waives if you keep a $2,500 minimum daily balance. This account typically pays a higher interest rate than the standard savings account, which is why the fee and balance requirement are steeper. The trade-off is that you get more interest on your money, but only if you can maintain the higher balance.

If you are a TD customer with a may have access to checking account or other products, you may be able to waive these fees through relationship pricing. TD sometimes offers fee waivers for customers who maintain direct deposit, set up automatic transfers, or hold multiple accounts with the bank. The specific requirements change, so you would need to ask a TD representative what applies to your situation.

Key Takeaways

  • TD Savings Account charges $2.50 per month unless you keep a $300 minimum daily balance.
  • TD Money Market Savings Account charges $25 per month unless you keep a $2,500 minimum daily balance.
  • Some customers can waive fees through relationship pricing if they have other TD products or set up direct deposit.
  • The fee posts each month if your balance falls below the minimum, so you need to monitor your account regularly.

How the minimum balance requirement works

The minimum balance is calculated on a daily basis, not an average. This means that if your balance dips below $300 for even one day during the month, you will owe the $2.50 fee for that entire month. If you are close to the threshold, a single withdrawal or a delay in a deposit can trigger the charge.

TD does not waive the fee retroactively if you bring your balance back up later in the month. Once the fee posts, it stays on your account. You would need to contact TD customer service to request a reversal, and whether they grant it depends on your account history and how often you have incurred the fee.

Interest rates and what you earn

TD's savings accounts earn interest, but the rate is typically lower than what online banks or credit unions offer. The rate varies based on market conditions and changes at TD's discretion. You can check the current rate on TD's website or by calling a branch, but rates are not may provide to stay the same.

The interest you earn is posted monthly or daily depending on the account type. Even if you earn interest, the monthly maintenance fee can offset that gain if your balance is small. For example, if you have $500 in a TD Savings Account earning 0.01% annually, you would earn roughly $0.04 per year in interest but pay $30 in annual fees, resulting in a net loss.

Ways to avoid or reduce fees

The simplest way to avoid the $2.50 fee on a TD Savings Account is to keep $300 or more in the account at all times. If you cannot maintain that balance consistently, you might consider moving your savings to an online bank or credit union, which often have no monthly fees and higher interest rates.

If you have a TD checking account, ask whether you may have access to for fee waivers through bundling. Some TD customers with direct deposit or automatic transfers get fee reductions or waivers. You can also ask whether TD offers a youth savings account or student account with lower or no fees if you are under a certain age.

Another option is to use TD's savings tools like automatic transfers from checking to savings. Setting up a regular transfer can sometimes trigger relationship pricing benefits that waive the maintenance fee. Call a TD branch to ask what specific actions may have access to you for fee relief.

Comparing TD savings to other banks

Many online banks and credit unions offer savings accounts with no monthly maintenance fee and no minimum balance requirement. Banks like Ally, Marcus, and Discover have zero-fee savings accounts and pay higher interest rates than TD. If you are primarily interested in saving money and earning interest, these alternatives may be more cost-effective.

Credit unions often have similar or better terms than TD, especially if you are a member. Some credit unions charge no monthly fee and have no minimum balance. The trade-off is that you lose the convenience of TD's physical branches if you prefer in-person banking.

If you value TD's branch network and customer service, the $2.50 or $25 monthly fee may be worth it to you. But if you are comparing purely on cost and interest rate, TD's savings accounts are generally more expensive than online alternatives.

What happens if you do not maintain the minimum balance

If your balance falls below the minimum, the monthly maintenance fee will post to your account automatically. The fee reduces your balance further, which can create a cycle where you fall further behind. For example, if you have $250 in a TD Savings Account and the $2.50 fee posts, your balance drops to $247.50, still below the $300 minimum.

TD will continue to charge the fee each month until your balance rises above the threshold. If you are not monitoring your account, you could accumulate several months of fees without realizing it. Setting up account alerts through TD's mobile app or online banking can help you track your balance and avoid surprise fees.

Frequently Asked Questions

Can I avoid the TD savings account fee by keeping my money in checking instead?

Yes, but you would not earn interest on the money. TD checking accounts also have monthly fees unless you meet their requirements, which typically include a minimum balance or direct deposit. If you want to save money without fees, an online savings account or credit union account is usually a better choice than either TD product.

Does TD charge fees for transferring money out of savings?

TD does not charge per-transfer fees for moving money between your own TD accounts. However, federal regulations limit the number of transfers you can make from a savings account to six per month. Exceeding that limit may result in fees or account restrictions.

What if I close my TD savings account?

You can close a TD savings account at any time without penalty. If there is a balance remaining, TD will send you a check or transfer it to another account you specify. Any pending monthly fees will still post before the account closes.

Do TD savings accounts have overdraft fees?

Savings accounts typically cannot overdraft, so you would not incur an overdraft fee. If you try to withdraw more than your balance, the transaction will be declined. However, the monthly maintenance fee will still post if your balance is below the minimum.

Can I switch to a different TD savings account to get a lower fee?

You could close your current savings account and open a different one, but both the standard TD Savings Account and the Money Market account have monthly fees. If you want a TD account with no monthly fee, ask a branch representative whether TD offers any fee-free savings products, as offerings vary by location and customer type.