TD Bank's current savings account rates

TD Bank's savings account interest rates change regularly and depend on which account you open. As of now, TD Bank offers several savings products with different rates: a regular savings account, a money market account, and certificates of deposit (CDs). The regular savings account typically pays a lower rate than the money market account, and CD rates vary based on how long you lock your money away.

The exact rate you receive depends on your account type and the current market environment. TD Bank does not publish a single "savings rate" — they publish different rates for different products. To see the current rates for each account type, you need to check TD Bank's website directly or visit a branch, because these rates shift with Federal Reserve decisions and market conditions.

Interest rates on savings accounts have risen significantly since 2022, when the Federal Reserve began raising its benchmark rate. TD Bank's rates have moved up along with the market, but they remain lower than what some online banks offer for the same type of account.

Key Takeaways

  • TD Bank offers savings accounts, money market accounts, and CDs, each with different interest rates that change regularly.
  • The regular savings account pays less interest than a money market account at the same bank.
  • Current rates are available on TD Bank's website or by calling their customer service line, since rates shift with Federal Reserve policy.
  • Online banks typically offer higher savings rates than TD Bank for the same account type, so comparing before you open an account matters.
  • Interest compounds daily on most TD Bank savings accounts, meaning you earn interest on your interest.

How TD Bank calculates and pays interest

TD Bank compounds interest daily on savings accounts and money market accounts. This means the bank calculates how much interest you have earned each day, adds it to your balance, and then uses that new balance to calculate the next day's interest. Daily compounding works in your favor because you earn interest on the interest you have already accumulated.

Interest is typically credited to your account monthly. You will see the deposit appear on the first or second business day of the following month. The amount depends on your average daily balance during that month and the annual percentage yield (APY) the bank is currently offering.

The difference between the interest rate and the APY matters. The rate is the percentage TD Bank pays per year. The APY is that rate plus the effect of daily compounding. For example, if a savings account has a 4.50% rate with daily compounding, the actual APY might be 4.60% because of how compounding works. Always look at the APY when comparing accounts, not just the rate.

Comparing TD Bank savings rates to other banks

TD Bank's savings rates are typically lower than what online banks offer. An online bank might pay 4.75% APY on a savings account while TD Bank pays 3.50% APY on the same type of account. Over time, that difference adds up significantly, especially if you have a large balance or plan to keep the money there for years.

The trade-off is access. TD Bank has physical branches where you can deposit cash, withdraw money, and speak to someone in person. Online banks have no branches, so you cannot hand someone cash or get when ready help with a problem. If you value the convenience of a local branch and do not mind earning less interest, TD Bank may make sense. If you want the highest rate and do not need a physical location, an online bank is usually the better choice.

Credit unions sometimes offer competitive rates as well, and they may have lower fees than TD Bank. If you are a member of a credit union, check their savings rates before opening a TD Bank account.

CD rates and terms at TD Bank

TD Bank offers certificates of deposit with terms ranging from a few months to several years. The longer you agree to lock your money away, the higher the rate TD Bank pays. A 3-month CD might pay 4.00% APY, while a 2-year CD might pay 4.75% APY. These rates change as market conditions shift.

The catch is that you cannot withdraw the money before the CD matures without paying a penalty. The penalty is usually a certain number of months of interest. If you open a 1-year CD and withdraw the money after 6 months, you might lose 3 months of interest as a penalty. Read the terms carefully before you commit.

CDs are useful if you know you will not need the money for a specific period and want a may provide rate. The rate is locked in when you open the CD, so you do not have to worry about rates dropping. However, if rates rise after you open the CD, you are stuck with the lower rate unless you pay the penalty to close it early.

Money market accounts versus regular savings accounts

TD Bank's money market account typically pays a higher rate than the regular savings account. The trade-off is that money market accounts usually require a higher minimum balance to open and to avoid a monthly fee. A regular savings account might have no minimum balance, while a money market account might require $2,500 or more.

Money market accounts also come with a limited number of withdrawals per month, usually six. If you exceed that limit, you may face a fee or the account may be converted to a regular savings account. Regular savings accounts have no withdrawal limits. This matters if you plan to move money in and out frequently.

For most people, the higher rate on a money market account does not justify the higher minimum balance and withdrawal restrictions unless you have a large amount to deposit and do not plan to touch it often.

Minimum balances and fees that reduce your interest

TD Bank's savings accounts have different minimum balance requirements depending on the account type. Some accounts have no minimum, while others require $100 or more to open. If your balance falls below the minimum, you may be charged a monthly maintenance fee that eats into the interest you earn.

A $5 monthly fee might not sound like much, but it adds up. If you earn $10 in interest per month and pay a $5 fee, your net gain is only $5. Over a year, that fee costs you $60 in lost earnings. Always check what fees explore to the account you are considering and whether you can avoid them by maintaining a minimum balance or setting up direct deposit.

Some TD Bank accounts waive the monthly fee if you maintain a certain balance or have a TD Bank checking account linked to the savings account. Read the account terms before you open it so you understand what fees might explore.

How to find TD Bank's current rates

TD Bank publishes current rates on their website under the savings and money market section. You can also call TD Bank's customer service line to ask about rates for specific account types. Rates change frequently, so the rate you see today may not be the rate you get if you open an account next week.

When you open an account, TD Bank will show you the APY that applies to your account type at that moment. That rate is may provide for the life of the account unless TD Bank changes its rates in the future. If rates drop, your rate drops with them. If rates rise, your rate stays the same unless you close the account and open a new one.

Some banks offer promotional rates for new customers. TD Bank occasionally offers a higher rate for a limited time if you open a new savings account. Check their website or ask in a branch whether any promotional rates are currently available.

Frequently Asked Questions

Does TD Bank pay interest on checking accounts?

TD Bank offers some checking accounts that pay a small amount of interest, but the rate is much lower than savings accounts. Most people use checking accounts for everyday spending and savings accounts for money they want to set aside. If you want to earn meaningful interest, a savings account or money market account is the better choice.

Can I move money between my TD Bank savings account and checking account without losing interest?

Yes. Moving money between your own accounts at TD Bank does not affect the interest you earn on the savings account. However, if you withdraw money from the savings account and do not put it back, you earn less interest because your balance is lower. Interest is calculated on your average daily balance, so the amount you have in the account each day matters.

What happens to my interest if TD Bank lowers its rates?

Your rate will drop along with TD Bank's published rate. You do not have to do anything — the change happens automatically. If you want to lock in a higher rate, you can open a CD, which guarantees a fixed rate for the term you choose. Once the CD matures, you can open a new one at whatever rate is available at that time.

Is my money safe in a TD Bank savings account?

TD Bank is a member of the Federal Deposit Insurance Corporation (FDIC), which means deposits up to $250,000 per account type are protected if the bank fails. Your savings account is insured separately from your checking account, so you have $250,000 of protection in each. This protection is automatic — you do not need to do anything.

How often does TD Bank change its savings rates?

TD Bank can change rates at any time, though they typically move rates when the Federal Reserve changes its benchmark rate. The Federal Reserve meets eight times per year, so rate changes often happen around those dates. You can check TD Bank's website regularly or sign up for alerts if they offer them to stay informed about rate changes.