TD Bank does not currently offer a dedicated high yield savings account
TD Bank's standard savings products—including their regular savings account and money market account—pay rates well below what you will find at online banks and credit unions. As of now, TD Bank does not market a high yield savings product under any name. If you hold money at TD Bank and want interest that keeps pace with inflation, you will need to look elsewhere or move your balance to a different institution.
The reason matters: TD Bank operates primarily as a branch-based retail bank with physical locations across the Northeast and Mid-Atlantic. Those branches cost money to maintain. Online-only banks have lower overhead and pass those savings to depositors in the form of higher rates. TD Bank's deposit rates reflect their business model, not a competitive gap they plan to close.
Key Takeaways
- TD Bank's savings account and money market account rates are significantly lower than rates offered by online banks and credit unions.
- You can move money between TD Bank and an external high yield savings account at another institution, though transfers take one to three business days.
- If you want to keep your checking account at TD Bank for branch access, you can open a high yield savings account elsewhere and link it for transfers.
- TD Bank's money market account requires a higher minimum balance than their savings account but does not pay a meaningfully higher rate.
How TD Bank's savings rates compare to the market
TD Bank's savings account and money market account rates vary by state and change periodically, but they typically fall between 0.01% and 0.05% annual percentage yield (APY). Online banks and credit unions currently offer rates between 4% and 5% APY on high yield savings accounts. That difference means $10,000 earning roughly $1 to $5 per year at TD Bank versus $400 to $500 per year at a high yield institution.
The gap widens over time. After five years, that $10,000 would grow to approximately $10,050 at TD Bank but to roughly $12,200 at a 4.5% APY account. The difference is not theoretical—it is money you do not receive. TD Bank's rates have not moved meaningfully upward even as the Federal Reserve raised interest rates between 2022 and 2023, which is when online banks and credit unions increased their offerings most aggressively.
What to do if you want higher rates but need TD Bank for other reasons
Many people keep a checking account at TD Bank for branch access or because their employer uses TD Bank's payroll system. You do not have to move all your money to switch savings rates. Open a high yield savings account at an online bank or credit union, then link it to your TD Bank checking account for transfers.
Transfers between banks take one to three business days using the ACH (Automated Clearing House) system. You can set up recurring transfers—for example, moving money to your high yield account every payday—so the process becomes automatic. Your TD Bank checking account remains your primary account for bill pay and debit card use, while your high yield savings account at another institution becomes your dedicated place to store money and earn interest.
This approach also protects your money under separate FDIC insurance. Both your TD Bank account and your external high yield account are insured up to $250,000 each, so if you split $400,000 between them, the full amount is protected.
TD Bank's money market account does not close the gap
TD Bank does offer a money market account, which typically requires a higher minimum deposit than their savings account—often $2,500 or more depending on your state. The rate on a money market account at TD Bank is marginally higher than their savings rate, but still far below market rates. You also get a limited number of withdrawals per month before fees apply, which is a restriction that high yield savings accounts do not impose.
A money market account makes sense if you need check-writing privileges and want to keep everything under one roof. For pure savings and interest earnings, it does not solve the rate problem. You would still earn roughly the same amount in a year as you would in their savings account.
Moving money out of TD Bank to a high yield account
If you decide to move your savings balance entirely to another bank, the process is straightforward. Open an account at your chosen institution, then initiate an ACH transfer from TD Bank to move the money. You can do this through TD Bank's online banking portal by entering the external account details, or you can contact TD Bank directly and ask them to process an outgoing transfer.
Some online banks and credit unions offer to handle the transfer for you—you provide them with your TD Bank login credentials, and they pull the money over. This is faster (sometimes same-day) but requires you to share your password temporarily. If you use this method, change your TD Bank password after the transfer completes.
Keep your TD Bank account open for at least 30 days after the transfer, even if the balance is zero. Some banks place holds on accounts that close immediately after large outgoing transfers, and you want to ensure the money has fully settled at the receiving institution before closing anything.
Why TD Bank's rates stay low even when the Fed raises rates
When the Federal Reserve raises its benchmark interest rate, banks have more incentive to pay depositors higher rates because they can earn more on loans and investments. Online banks respond quickly because they compete directly on rate. TD Bank responds slowly or not at all because their customers are less likely to leave—they value the branch network and existing relationships.
This is not malice; it is economics. A customer who has their paycheck deposited at TD Bank, pays bills from a TD checking account, and has a mortgage with TD Bank is unlikely to move their savings account to an online bank they have never heard of just for a higher rate. TD Bank knows this and prices their deposits accordingly. Online banks, by contrast, have no other reason for you to stay, so rate is their primary competitive tool.
Frequently Asked Questions
Can I keep my TD Bank checking account and move only my savings?
Yes. Open a high yield savings account at another bank and link it to your TD Bank checking account. Transfer money between them as needed. Your checking account stays at TD Bank for branch access and bill pay, while your savings earn a higher rate elsewhere.
What if I need to access my money quickly from a high yield account?
ACH transfers take one to three business days. If you need money the same day, keep a smaller emergency fund in your TD Bank checking account and use the high yield account for money you do not need immediately. Some online banks also offer debit cards linked to savings accounts for faster access.
Is my money safe at an online bank if TD Bank is a larger institution?
Yes. Online banks and credit unions are insured by the FDIC or NCUA up to $250,000 per account, the same as TD Bank. The size of the institution does not affect insurance coverage. Your money is equally protected whether it sits at a large bank or a small online bank.
Do I have to close my TD Bank account to get a better rate?
No. You can keep your TD Bank account open indefinitely and simply stop using it for savings. Many people maintain accounts at multiple banks for different purposes—checking at one place, savings at another, credit card at a third.
What happens to my money if I transfer it during a market downturn?
High yield savings accounts are not investments; they are deposit accounts. Your balance does not fluctuate with markets. The rate you earn is fixed by the bank and changes only when the bank changes it. Your principal is always safe and always accessible.