TD Bank's current savings account lineup

TD Bank offers two main savings accounts: the TD Savings Account and the TD Money Market Savings Account. Neither is marketed as a high-yield product, and the rates on both are typically lower than what online banks and credit unions offer for the same type of account.

The TD Savings Account is a basic savings product with no monthly fee if you maintain a minimum balance (usually $100 to $300, depending on your state). The Money Market Savings Account requires a higher opening deposit and minimum balance—often $2,500 or more—and offers a slightly higher rate in exchange. Both rates change regularly and vary by state and branch.

If you're comparing TD to other banks, you'll find that online savings accounts from banks like Marcus, Ally, or American Express typically pay 4 to 5 times what TD offers. Credit unions often have competitive rates as well, especially if you're a member.

Key Takeaways

  • TD Bank's savings accounts pay rates well below what online banks and many credit unions offer for the same account type.
  • The Money Market Savings Account requires a higher minimum balance than the regular Savings Account but pays a modestly higher rate.
  • TD's rates vary by state and change frequently, so the rate you see today may not be the rate you get when you open an account.
  • If you're looking for the highest possible rate on savings, you'll find better options outside of TD's branch network.

Why TD's rates lag behind online banks

TD maintains a large branch network across the Northeast and Mid-Atlantic, which means higher operating costs than online-only banks. Those costs get passed along to customers through lower rates on deposits. You're paying for the convenience of walking into a physical location, even if you never use it.

Online banks have no branches, no tellers, and no physical infrastructure. They pass those savings to customers in the form of higher rates. If you rarely visit a branch, you're essentially paying for a service you don't use.

What TD's rates actually look like

TD's savings rates fluctuate with the Federal Reserve's rate decisions, but they typically sit between 0.01% and 0.50% APY depending on the account type and your location. The Money Market account may pay slightly more—sometimes reaching 0.75% to 1.00%—but this still lags significantly behind online alternatives.

To know the exact rate for your state and account type, you'll need to check TD's website or call your local branch, since rates are not uniform across the country. Some states and branches offer slightly better rates than others.

When a TD savings account might still make sense

If you already bank with TD and use your branch regularly, keeping a savings account there simplifies your finances. You can move money between checking and savings instantly at an ATM or online, and you have a teller to talk to if you need help.

TD also offers FDIC insurance on savings accounts up to $250,000, the same protection you'd get at any other bank. If you're saving a small amount and value convenience over rate, the difference between TD's rate and a higher rate elsewhere may not matter much in real dollars.

However, if you're saving a larger sum—$10,000 or more—the rate difference adds up quickly. A $10,000 balance earning 0.10% at TD versus 4.50% at an online bank means you're giving up roughly $440 per year in interest.

How to compare TD to other options

Start by checking what rate TD is currently offering in your state. Then compare it to online banks (Marcus, Ally, American Express, Discover), your local credit union, and any other banks where you might already have an account. Look at the APY, not just the interest rate, since APY accounts for how often interest compounds.

Check whether there are minimum balance requirements, monthly fees, or withdrawal limits. Some online banks have no minimums and no fees; others do. TD's Money Market account, for example, may charge a fee if your balance drops below the minimum.

If you're comparing rates, make sure you're looking at the same type of account. A regular savings account at one bank is not the same as a money market account at another. The rates will differ.

Moving money out of TD if you find a better rate

If you decide to move your savings to another bank, the process is straightforward. Open an account at the new bank, then either transfer the money electronically (using your TD account number and routing number) or withdraw cash and deposit it. There's no penalty for closing a TD savings account, and you can do it online, by phone, or in person.

Keep your TD account open for at least 30 days after the transfer clears, in case the new bank needs to verify the deposit. Once you're sure everything went through, you can close the TD account.

Frequently Asked Questions

Does TD have any high-yield savings accounts?

No. TD's savings accounts are not positioned as high-yield products. Their rates are typically lower than online banks and many credit unions. If high yield is your priority, you'll need to look elsewhere.

Can I get a better rate if I have a TD checking account?

Not usually. TD doesn't offer rate bonuses for linking accounts or maintaining a certain balance in checking. Your savings rate is based on the account type and your state, not on your relationship with the bank.

What's the difference between TD's Savings Account and Money Market Savings Account?

The Money Market account requires a higher minimum balance (often $2,500 or more) and pays a slightly higher rate. It may also limit the number of withdrawals you can make per month. The regular Savings Account has a lower minimum and no withdrawal limits, but pays less interest.

Is my money safe in a TD savings account?

Yes. TD is FDIC-insured, which means deposits up to $250,000 are protected if the bank fails. This protection applies to all TD savings accounts, regardless of the rate they pay.

How often does TD change its savings rates?

TD adjusts rates in response to Federal Reserve decisions and market conditions. This can happen monthly or several times per year. You won't know the exact timing in advance, so if rate changes matter to your decision, check TD's website regularly or set up rate alerts.