What TD Bank charges for savings accounts
TD Bank does not charge a monthly maintenance fee on most of its savings accounts. However, the account you open matters — TD offers several savings products, and some have conditions that can trigger fees or require a minimum balance to avoid them.
The most common TD savings account is the TD Savings Account, which has no monthly fee and no minimum opening deposit. A second option, the TD Money Market Account, also carries no monthly maintenance fee but does require a $2,500 minimum balance to earn the stated interest rate; if your balance falls below that, you earn a lower rate instead, which functions as a penalty rather than a direct fee.
TD also offers a TD Youth Savings Account for customers under 18, which has no monthly fee and no minimum balance requirement. If you close an account within 30 days of opening it, TD may charge a $25 early closure fee, though this applies across most of their deposit products.
Key Takeaways
- TD Savings Account and TD Youth Savings Account have no monthly maintenance fee and no minimum balance requirement.
- TD Money Market Account has no monthly fee but requires a $2,500 minimum balance to earn the advertised interest rate; falling below that triggers a lower rate.
- Closing a savings account within 30 days of opening may result in a $25 early closure fee.
- Interest rates on TD savings accounts vary by account type and current market conditions, so compare rates before opening.
When TD charges fees on savings accounts
TD's fee structure for savings accounts is straightforward: no monthly maintenance charge on standard accounts. The main scenario where you incur a cost is if you close the account too soon. The 30-day early closure window applies to most TD deposit accounts, including savings.
Overdraft fees do not apply to savings accounts themselves, but if you link a savings account to a checking account and overdraw the checking account, TD may charge an overdraft fee on the checking side. Savings accounts do not overdraft — they simply stop allowing withdrawals once the balance reaches zero.
If you maintain a TD Money Market Account, the penalty for falling below the $2,500 minimum is not a fee but a rate reduction. Your money remains in the account and earns interest, but at a lower percentage. This is worth tracking because the difference can add up over time, especially if rates are high.
How to avoid fees on a TD savings account
Keep your account open for at least 30 days after opening to avoid the early closure fee. If you are certain within the first month that you do not want the account, contact TD directly to ask whether they will waive the fee — some banks do so for first-time customers or if you have other accounts with them.
For a TD Money Market Account, maintain a balance of at least $2,500 to earn the full advertised rate. If you are building toward that amount, a standard TD Savings Account with no minimum is a better temporary home for your money.
Check your account statements regularly to confirm you are earning the rate you expected. Interest rates change, and TD will notify you of changes, but verifying the rate on your statement ensures no surprises.
Interest rates on TD savings accounts
TD's savings account interest rates change based on the Federal Reserve's rate decisions and market conditions. The rate you earn depends on which account you hold and the current rate environment. TD publishes current rates on their website, and you can compare them before opening an account.
The TD Savings Account typically offers a lower rate than the TD Money Market Account, which requires the higher minimum balance. This is standard across banks — accounts with higher minimums usually pay more interest as an incentive to keep larger balances.
Interest compounds daily and is deposited monthly on most TD savings accounts. This means you earn interest on your interest, which accelerates growth over time. The exact compounding frequency is listed in your account agreement.
Comparing TD savings to other banks
TD's lack of monthly maintenance fees puts it in line with most large national banks. However, online banks and credit unions often offer higher interest rates on savings accounts because they have lower overhead costs. If earning the highest possible rate is your priority, compare TD's current rate to online options before deciding.
TD's advantage is branch access — you can deposit cash, speak to a representative in person, and manage your account at any of their locations. Online banks require electronic transfers or mobile deposits, which may be slower if you need to move money quickly.
If you already have a checking account with TD, linking a savings account to it may simplify your finances and could make you may be able to access for relationship discounts on other products, though TD does not currently offer tiered fee waivers based on account balances.
How to open a TD savings account
You can open a TD savings account online, by phone, or in person at a TD branch. Online opening is fastest — you provide your Social Security number, address, and initial deposit information, and the account opens within minutes. You can then transfer money from another bank or deposit cash at a TD ATM or branch.
If opening in person, bring a government-issued ID and your Social Security number. You can fund the account with cash, a check, or a transfer from another bank. TD does not require a minimum opening deposit for the standard savings account, so you can open with $1 if you prefer.
After opening, you receive online and mobile banking access immediately. You can set up automatic transfers from your checking account to your savings account to build your balance over time.
What happens if your balance drops to zero
A TD savings account with a zero balance remains open and incurs no fees. You can continue to deposit money into it at any time. Interest simply does not accrue when there is no balance, which is expected.
However, if your account shows no activity for an extended period (typically two to three years, depending on state law), TD may classify it as dormant and transfer the funds to your state's unclaimed property program. You can reclaim the money by contacting your state's treasury office, but it is simpler to make at least one deposit or withdrawal annually to keep the account active.
Frequently Asked Questions
Does TD charge a monthly fee for savings accounts?
No. The TD Savings Account and TD Youth Savings Account have no monthly maintenance fee. The TD Money Market Account also has no monthly fee, but it requires a $2,500 minimum balance to earn the full interest rate.
What is the minimum balance for a TD savings account?
The TD Savings Account and TD Youth Savings Account have no minimum balance requirement. The TD Money Market Account requires $2,500 to earn the advertised rate; if your balance falls below that, you earn a lower rate instead.
Can I withdraw money from my TD savings account anytime?
Yes, you can withdraw money anytime without penalty. Federal law previously limited savings withdrawals to six per month, but that rule was suspended. TD does not impose its own withdrawal limits on savings accounts.
What happens if I close my TD savings account within 30 days?
TD charges a $25 early closure fee if you close the account within 30 days of opening. After 30 days, you can close the account with no fee. Contact TD by phone or visit a branch to close your account.
How much interest will I earn on a TD savings account?
Interest rates vary based on the account type and current market conditions. Check TD's website for current rates before opening. Interest compounds daily and deposits monthly, so your earnings grow over time as you earn interest on your interest.