TD Bank offers higher savings rates than competitors, with no minimum opening deposits.
TD Bank offers higher savings rates than competitors, with no minimum opening deposits.
TD Bank: Signature Savings vs Simple Savings Account
At TD Bank, potential customers have two options when it comes to savings accounts: the TD Signature Savings and the TD Simple Savings Account. The decision between the two will depend on how much money individuals plan to keep in their account. While TD Bank does offer slightly higher rates compared to most traditional brick-and-mortar banks, there are better rates available with online banks.
TD Standard Savings Rates
At the bare minimum, customers can expect to earn the standard savings rates with the TD Signature Savings account. These rates may be satisfactory for some, but for those looking for more lucrative returns, it may be worth exploring other options.
TD Relationship Savings Rates
TD Bank has made it relatively easy for customers to qualify for a “relationship rate.” By linking their TD Signature Savings account to another TD Bank product such as a personal checking account, small business checking account, credit card, mortgage, or home equity loan, customers can unlock higher interest rates.
Customers who meet the criteria for a relationship rate can enjoy the following rates:
| TD Relationship Product | Associated Savings Rate |
|---|---|
| Personal Checking Account | TBD |
| Small Business Checking Account | TBD |
| Credit Card | TBD |
| Mortgage | TBD |
| Home Equity Loan | TBD |
It is important to note that higher balances are typically required to earn better interest rates with TD Bank. However, if the idea of online banking appeals to customers, there are online banks that offer higher rates with no minimum balance requirements.
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TD Bank Rates
For those considering the TD Simple Savings Account, the interest rate offered is 0.02% Annual Percentage Yield (APY) on all balances. When choosing between TD Bank’s savings account options, it ultimately boils down to the amount of money individuals plan to keep in the account. Customers who maintain a balance under $10,000 and do not qualify for relationship rates may find that TD Bank offers a slightly higher rate. However, the difference is relatively minimal.
TD Bank Savings Rates vs. Bank of America Savings Rates
Another major player in the banking industry, Bank of America, offers the Advantage Savings account with an interest rate of 0.01% APY on most balances. However, customers who qualify for Preferred Rewards can earn slightly higher rates. The Preferred Rewards tiers are as follows:
- Gold: Customers can 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: Customers can earn 0.03% APY with a three-month average combined balance of $50,000 to $99,999.
- Platinum Honors: Customers can earn 0.04% APY with a three-month average combined balance of $100,000 or more.
Even with Bank of America’s Preferred Rewards rates, interest rates remain relatively low. Should customers plan to maintain a high balance, it may be more beneficial to open a TD Signature Savings account in order to earn more than Bank of America’s maximum rate.
TD Bank Savings Rates vs. Wells Fargo Savings Rates
Wells Fargo, another prominent national bank with a strong presence on the East Coast, offers the Way2Save® Savings Account with an interest rate of 0.15% APY. Additionally, they provide the Platinum Savings Account with varying interest rates ranging from 0.25% to 1.01% APY.
For customers who qualify for a relationship rate and maintain a high account balance, opening a TD Signature Savings account may prove to be more advantageous. By obtaining a TD Bank personal checking account, small business checking account, credit card, mortgage, or home equity loan, and maintaining a balance of $100,000 or more in their account, customers can benefit from higher rates.
In conclusion, while TD Bank does offer competitive rates compared to traditional brick-and-mortar banks, there are other options available that can provide higher interest rates. Customers must carefully consider their savings goals, relationship with the bank, and desired balance to make an informed decision on which savings account option is best for them.
