TCF Bank serves seven states and offers a wide range of certificate of deposit (CD) term options. With terms ranging from three months to 10 years, it’s sure to appeal to both short- and long-term savers. The minimum deposit of $500 is also lower than many large banks. However, interest rates from TCF Bank do not always compare favorably to some of the best CD rates. You can get a higher rate with a promotional CD, but promotional CDs have their own requirements that may make them too expensive for some people.
Whether or not you open an account with TCF Bank will depend on your individual goals and financial situation. Below we go over everything you need to consider before opening an account.
|CD Length||Minimum Deposit||APY: Standard||APY: Relationship Rate|
|3-13 Month||$500||0.05%||0.10%||Compare CDs|
|14 Month||$500||0.15%||0.40%||Compare CDs|
|15-20 Month||$500||0.15%||0.20%||Compare CDs|
|21-29 Month||$500||0.20%||0.25%||Compare CDs|
|30-36 Month||$500||0.25%||0.30%||Compare CDs|
|37-48 Month||$500||0.30%||0.35%||Compare CDs|
|49-61 Month||$500||0.35%||0.40%||Compare CDs|
|62-120 Month||$500||0.45%||0.50%||Compare CDs|
|15 Month Promotional CD||$500||0.50%||0.50%||Compare CDs|
15-Month CD Interest Rate Comparison
Overview of TCF Bank CDs
TCF Bank has about 320 branch locations spread across Arizona, Colorado, Illinois, Michigan, Minnesota, South Dakota and Wisconsin. In order to open a CD, you will need to visit a local branch.
The CDs from TCF Bank all require a $500 minimum deposit. Terms range in length from three months to 10 years with longer terms having higher interest rates. Interest rates are also higher for customers who qualify for the relationship rate. The only requirement for getting the relationship rate is to have a checking account with TCF Bank. All CD terms and rates also qualify for use in an individual retirement account (IRA).
Interest compounds daily and when it credits to your account will depend on the length of your CD term. Terms of less than 12 months will only get interest credited at maturity. Interest will credit quarterly to accounts with terms of 12 months or more. The default option is for interest to credit to your account, but you can elect to have your interest go into a TCF Bank savings or checking account. If you choose to move your credit to another account, you have the option to receive interest payments quarterly or monthly.
You may also have the option to receive your interest payments as physical checks. If your account balance is at least $5,000 you qualify for quarterly interest checks. You can receive monthly interest checks if your account balance is at least $10,000.
Even though you can transfer interest payments out of your account, you cannot remove any of the principal before the end of your term. Any principal you withdraw is subject to an early withdrawal penalty. The penalty is generally 1% of the amount withdrawn for each year of the CD's term that remains at the time of withdrawal. You won’t pay more than 3% and the penalty will never be less than $25 or seven days' interest.
To withdraw funds without paying a penalty, you will need to wait until your CD reaches maturity. At that point you will receive a seven-day grace period. You can make any changes, withdrawals or additions to your account within that time. Your CD will automatically renew at the end of the grace period as long as you have at least $500 left in your account. The new CD will have the same length as the original with the current available interest rate.
In addition to its standard CDs, TCF Bank may also offer promotional CDs. A promotional CD offers higher rates than a standard CD of the same term length. The minimum deposits are still $500. Interest rates are the same for all customers. There is no relationship rate. The big caveat with promotional CDs is that they require new money. This is money you do not already have on deposit with TCF Bank.
How Much You Earn With TCF Bank CDs Over Time
The interest rates from TCF Bank are not very high, and you won’t earn much in interest payments. The best way to make sure you earn decent interest is to choose long-term CDs and to deposit as much as you can afford. The relationship rate and promotional CDs will also get you better rates.
To illustrate how low the interest rates are, consider that if you only deposit the account minimum ($500) to a six-month CD, you will earn about 25 cents at the end of your term.
The table below shows what your approximate total balance will be based on different initial deposits and term lengths. This table uses the relationship rates listed above.
|Initial Deposit||18-Month CD||36-Month CD||60-Month CD|
How TCF Bank CD Rates Compare to Other Banks’
Because TCF Bank has low interest rates, you should definitely compare CD rates from other banks before opening an account. Depending on what your savings goals are, certain banks may offer more appealing rates.
For example, customers with short-term goals will like the rates from Ally Bank. Ally’s interest rates for terms of one year and less are among the highest on the market. Ally is an entirely online bank, so you won’t be able to visit a branch in person. But the tradeoff is higher rates. There is also no minimum deposit on Ally CDs.
If you prefer a bank with physical branches, consider Capital One. Capital One requires no minimum deposit and has competitive interest rates – especially for its long-term options.
If you are primarily interested in TCF Bank’s long-term options, you may be interested in brokered CDs. For example, CDs from Edward Jones offer some of the highest rates and have terms of up to 10 years long. The minimum deposit is $1,000 but it the higher price tag could be well worth it if you’re looking for the highest rates.
|CD Account||TCF Bank||Ally Bank||Capital One|
Compare TCF Bank to Other Competitive Offers
Should You Get a TCF Bank CD Account?
You should consider a CD with TCF Bank if you already have a relationship with the bank and you don’t want to open an account at any new institutions. Otherwise, you should consider other banks. There are better interest rates available whether you are looking for short- or long-term options.