TD Bank Savings Rates: Interest, Benefits, and Alternatives

Business Insider's personal finance team compared TD Bank savings accounts to the best high-yield savings accounts and found them to be a standard offering. The TD Signature Savings account offers good interest rates, but you have to meet significant requirements to earn them, and online banks still offer higher rates.

TD Bank has two savings accounts: the TD Simple Savings Account and TD Signature Savings. Each one pays a different savings rate.

Compare TD Bank's Savings Rates

• TD Simple Savings Account: 0.02% APY
• TD Signature Savings: 0.01% to 3.25% APY

Current TD Bank Savings Rates

TD Bank's interest-earning accounts compound interest monthly. Other banks might compound interest daily or quarterly.

Compounding frequency can make a difference in your total earnings if you maintain a lot of money in your account. You can use a compound interest calculator to calculate how much money you can make.

TD Bank Simple Savings Rates

The TD Simple Savings Account pays 0.02% Annual Percentage Yield (APY) on all balances, which is low compared to the average savings account interest rate.

TD Bank Signature Savings Rates

TD Signature Savings, which offers interest rates ranging from 0.01% to 3.25%APY, offers standard rates and relationship rates. This means the rate will vary depending on which one you qualify for.

TD Bank offers several ways to qualify for a "relationship rate," or a higher rate, as a reward for having another TD Bank product. You'll have relationship rates when you link your TD Signature Savings to a TD Bank personal checking account, small business checking account, credit card, mortgage, or home equity loan.

If you have a business or personal checking account, you'll also need to meet additional requirements to qualify for a "relationship rate" — either receive a monthly direct deposit or make at least three deposits, withdrawals, payments, or transactions monthly.

Keep in mind that many of the best online banks still offer higher rates than either savings account at TD Bank.

You'll earn the following savings rates with TD Signature Savings:

O%verview of TD Bank Savings Accounts

How TD Bank Savings Accounts Work

The TD Simple Savings Account is the bank's standard savings account. It has a $0 minimum opening deposit, but it pays a low interest rate.

You'll also need to meet certain requirements to waive the $5 monthly service fee. You can waive the monthly bank maintenance fee for the first year if you have a linked eligible TD Bank checking account and make a recurring monthly transfer of $25 or more.

TD Bank also offers two other ways to waive the account fee. You can either maintain a $300 minimum daily balance or meet certain age requirements. You waive the fee by being 18 years of age or younger, as well as by being 62 years of age or older. TD Bank doesn't offer savings accounts for kids or seniors, but this could be a good way to earn age-based perks anyway.

TD Signature Savings is the bank's premium savings account. This account will be a better fit than the TD Simple Savings Account if you maintain more than $10,000 in your account and have an eligible TD Bank product, such as a TD Bank checking account; this will let you waive the $15 monthly service fee and earn a relationship rate.

This account also comes with free incoming wire transfers, checks, money orders, and stop payments.

TD Bank's savings accounts offer several ways to earn low fees through TD Bank checking accounts. With TD Signature Savings, you won't pay TD Bank ATM fees no matter what, and your out-of-network ATM fees will be reimbursed, as long as you maintain a $2,500 daily minimum balance.

You'll also be able to set up overdraft protection with either TD Bank savings account to avoid overdraft fees. You can set up savings overdraft protection with either account, which lets you connect your TD Bank savings account to your checking account. Once the accounts are connected, if you overdraw your checking account, money will be automatically transferred from your savings to your checking account for no fee.

Just keep in mind that the best banks for overdrafts don't charge overdraft fees at all; TD Bank charges a $35 overdraft fee if you don't set up overdraft protection.

TD Bank Savings User Experience and Accessibility

The TD Bank mobile app includes standard features like mobile check deposits, online bill pay, and Zelle.

TD Bank's mobile banking app has received 4.8 out of 5 stars in the Apple store and 4.0 out of 5 stars in the Google Play store.

You can reach out to TD Bank customer support by phone or live chat 24/7. If you live near a TD Bank branch, hours will vary depending on where you live. Some locations notably stay open seven days per week.

TD Bank Savings Security

TD Bank is a long-running financial institution that is backed by the federal government. As such, it's FDIC-insured; this means that your money will be safe up to $250,000 for a single depositor and $500,000 for a joint bank account in case of a bank failure.

TD Bank's credit ratings are strong; it has generally high rates from Moody's, Fitch, and Bauer Financial.

TD Bank Savings Pros and Cons

TD Bank Savings Pros

• Over 1,100 branches in 15 East Coast U.S. states and Washington, D.C.
• Good rates on TD Signature Savings if you qualify for a relationship rate and can maintain at least $10,000 in your account
• No minimum opening deposit required

TD Bank Savings Cons

• TD Simple Savings Account pays a lower interest rate than the average savings account
• Lower interest rates than online banks
• Monthly service fees

TD Bank Savings Alternatives

TD Bank Savings vs. Bank of America Savings

If you want a bank with a larger footprint than TD Bank , you might like Bank of America.

That said, Bank of America Advantage Savings pays 0.01% to 0.04% APY. No matter what, you'll earn at least 0.01% APY, 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% APY with a three-month average combined balance of $50,000 to $99,999
• Platinum Honors: Earn 0.04% APY with a three-month average combined balance of $100,000 or more

Overall, Bank of America savings rates are pretty low, regardless of whether you qualify for Preferred Rewards. If you plan to maintain a high balance, you may want to open TD Signature Savings to earn more than Bank of America's maximum rate.

Bank of America Review

TD Bank Savings  vs. Wells Fargo Savings

Wells Fargo is another national bank with substantial branches on the East Coast, although Wells Fargo has a significantly larger footprint overall, with branches in 36 states and Washington, D.C.

Wells Fargo savings rates may vary depending on the savings account. You'll earn 0.01% APY with the Wells Fargo Way2Save® Savings Account, and 0.01% to 2.51% APY with the Wells Fargo Platinum Savings Account.

You might be better off opening TD Signature Savings if you qualify for a relationship rate and maintain a high account balance.

Wells Fargo Bank Review

Opening a TD Bank Savings Account

TD Bank Savings Account Eligibility Requirements

You can open a TD Bank savings account at a branch or online. TD Bank serves residents of Connecticut, Delaware, Florida, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia, and Washington, DC.

Step-by-Step Guide to Opening a TD Bank Savings Account

If you are looking to open a bank account for a minor or a joint bank account, you must open an account at a branch. Individual savings accounts can be opened online, though.

The online application requires a Social Security number, a government-issued ID, and banking information (like an external bank account number). If you're applying for the account in person, you also must provide personal documentation to verify your identity.

TD Bank Initial Deposit Requirements

TD Bank savings accounts can be opened with $0 upfront. However, you'll need to have a certain amount in your account each month to waive monthly service fees on either savings account.

TD Bank Savings vs. TD Bank CDs

TD Bank savings accounts offer a variable interest rate, while the bank's CD pays a fixed interest rate. To maximize your savings, you have to consider what matters more — accessibility or earning a set interest rate. If you need to have access to your money, a savings account is more suitable than a CD. If you don't need to access your money, a CD offers guaranteed interest for the term you've chosen (as long as you don't make an early withdrawal).

The best CD rates tend to be a bit higher than traditional bank account savings rates, and TD Bank is no exception. TD Bank Choice Promotional CDs offer interest rates of 1.00% to 3.75%, depending on the term length and whether you can earn a relationship rate.

If you qualify for a relationship rate with a TD Bank CD, you'll probably be able to lock in an interest rate that's similar to or higher than what you'd earn from the TD Signature Savings account. Otherwise, a savings account will probably be a better fit.

Is a TD Bank Savings Right For You?

The TD Signature Savings account pays a higher interest rate than the TD Simple Savings Account on balances of $10,000 or more. However, to get the most out of this account, you'll need to qualify for a relationship rate and meet one of the requirements to waive the $15 monthly service fee.

Ultimately, you can find much better rates with the best online banks.

Why You Should Trust Us: How We Reviewed TD Bank Savings Accounts

We rate bank accounts on a scale from one to five stars. For our TD Bank saving rates review, we used our bank account methodology, which looks at interest rates, minimum opening deposits, monthly service fees, customer support availability, miscellaneous features, mobile app ratings, and the ethics and security of the company to rate savings accounts.

We use a weighted average to get our star rating, which means we weigh certain features, like interest rates and fees, at a higher weight percentage than others. We understand that these areas can more heavily impact a person's overall banking experience.

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