TD Bank offers three types of regular certificate of deposit accounts. The TD Choice CDs are its standard CD account, offering balance tiers and promotional rates. The TD No-Catch CD offers a better option for those who need a little more flexibility in a CD. The money you deposit in a CD is typically off-limits after you open the account until maturity. But the No-Catch CD makes it easier to access your money with one penalty-free early withdrawal. Finally, if you want an account that doesn’t stick to the same rate for the whole term, you can open a TD Step Rate CD. This account sees a rate increase every year until it reaches maturity.
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TD Choice CD
For the most customizable TD Bank CD, the TD Choice CD will be the option for you. There are eight different term lengths to choose from. Each term earns interest according to balance tiers so higher balances have the potential to earn at even better rates. If you also have a TD Bank checking account, that can secure you even higher TD Choice Promotional CD rates.
These Promotional CD rates only last for the duration of your initial term. Once they reach maturity, they will renew automatically for the same term length but with the standard rates at the time.
|TD Choice: Standard||$250 - $9,999.99||$10,000 - $49,999.99||$50,000 - $99,999.99||$100,000+|
|TD Choice: Rate Bump||$250 - $9,999.99||$10,000 - $49,999.99||$50,000 - $99,999.99||$100,000+|
TD No-Catch CD
Certificates of deposit are known for their strictness when it comes to accessing your money. Once you make your initial deposit, the account is closed until it reaches maturity. Only then can you make an additional deposit or a withdrawal. If you do make an early withdrawal, you typically face some heavy fees. The TD No-Catch CD, however, allows for one penalty-free withdrawal per term.
|TD No-Catch CD||Minimum Deposit||APY|
TD Bank Step Up CD
If you’re not quite satisfied with earning at the same rate over the course of a CD term, the TD Bank Step Up CD increases your rate every year until maturity. There are two term options, either three or five years. On each anniversary of your account opening, your rate will see a set increase. Plus, at this time, you have 10 days to make a full or partial withdrawal from your CD, penalty-free.
|3-Year Step Rate CD||Minimum Deposit||APY|
|5-Year Step Rate CD||Minimum Deposit||APY|
Compare TD Bank to Other Competitive Offers
Overview of TD Bank CDs
If you want access to various CD account options, TD Bank is a solid choice. Its three account choices allow you to find the accounts that work best for you, depending on your savings goals and current financial situation. For example, if you know you’ll need to make a withdrawal before your term is up, you may want to open a No-Catch CD. That way you can make one penalty-free withdrawal before your term is up.
TD Bank’s CD rates aren’t the best rates out there though. On the whole, the rates are low to average, meaning you won’t see incredible growth on your initial deposits. To earn the best CD rates the bank can offer, you’ll need to open a TD Choice CD account and have a TD Bank checking account at the time of opening or renewal. Having a TD Bank checking account unlocks the TD Choice CD Promotional rates which can easily outperform the standard rates. Even further, making higher initial deposits can give you access to higher rates. For example, a deposit of $10,000 will earn at a higher rate than a $250 deposit.
Luckily, there is no monthly fee to maintain a TD Bank CD account. You will need to avoid making any early withdrawals, however, especially with TD Choice CDs. CDs are designed to grow undisturbed throughout an account’s entire term. Making an early withdrawal will trigger a heavy penalty that often makes your withdrawal hardly worth it. TD Bank will deduct all the interest earned on accounts of seven to 89 days if you make an early withdrawal. On accounts from 90 days to a year, the penalty equals three months’ interest. Accounts between one and two years have a penalty of six months’ interest, accounts between two and three years charge nine months’ interest, accounts of three to four years charge 12 months’ interest, accounts of four to five years charge 18 months’ interest and accounts of five years and overcharge 24 months’ interest.
Don’t forget that the TD No-Catch CDs do allow for one penalty-free withdrawal per term. So if you can limit yourself to one early withdrawal, you can avoid any big penalties.
How Much You Earn With TD Bank Certificate of Deposits Over Time
To get the best TD Bank rates, you’ll likely want to consider TD Choice Promotional CD rates. These can reach higher than 1%, unlike the Standard rates. You’ll definitely want to double check the promotional rates before you open an account, though, since not every term offers substantially higher rates.
You’ll also want to determine the amount you want to deposit into the CD account. Your deposit will determine your TD Choice CD rate since these accounts earn according to balance tiers. That means higher balances can earn higher rates.
Your initial deposit will heavily determine your final balance with a No-Catch CD, too. This is due to these accounts having lower-earning interest rates. As you can see below, depositing the minimum of $250 into a 12-Month No-Catch CD will earn you only a few cents through the term.
The amounts below reflect the possible final amounts once each account reaches maturity. The exact amount you end up with will depend on the account you choose, the rates at the time of opening, whether you snag Promotional rates and your initial balance. Finally, we assumed TD Bank compounds interest monthly as its investment calculator assumes this compounding frequency.
|Initial Deposit||6-Month TD Choice (Standard)||6-Month TD Choice (Promotional)||3-Year TD Choice (Standard)||3-Year TD Choice (Promotional)||12-Month No-Catch CD|
How TD Bank CDs Rates Compare to Other Banks
On the whole, TD Bank’s CD rates are unremarkable. They do often fare better than other big bank counterparts like U.S. Bank and Chase, whose rates are shown below. U.S. Bank also offers a variety of CD account types. Its 6 month CD rates are the same as TD Bank’s, though, with only its 3 and 5-year standard CD reaching higher than TD’s rates.
The difference in rates is even more drastic when you compared TD Bank and Chase. Chase is one of the biggest banks out there which means it has to keep up with the costs of thousands of locations in 26 states. While this makes for physical convenience, it lessens your opportunity to really grow your money. Chase does also offer higher relationship rates. However, these rates don’t really go much higher than the standard Chase rates given below.
To find the highest rates in the industry, look to online banks like Marcus by Goldman Sachs. Online banks don’t have to maintain thousands of branches and employees. That allows them to pass those savings onto its customers through higher-earning interest rates. You can see below that Marcus’ rates easily outrank TD Bank’s rates across the board.
|CD Account||TD Bank Choice CD (Standard)||TD Bank Choice CD (Rate Bump)||U.S. Bank||Chase||Marcus by Goldman Sachs|
Should You Get a TD Bank CD Account?
A TD Bank CD account makes the most sense if you also have an eligible TD Bank checking account. That way, you can earn Promotional CD rates on any TD Choice CD accounts you open. Your checking account needs to already be active and eligible by the time you open or renew a CD to earn the Promotional rates. This makes TD Bank CDs better for those who already own a TD Bank checking account. If you’re not an existing TD Bank customer, you can still open a new checking account with the bank, although you’ll have to decide if that’s worth it. In that case, you could just as easily find another bank with better CD rates that don’t require a linked checking account.