TD Bank's savings account lineup does not include a dedicated high yield savings account
TD Bank (also called TD Bank, N.A.) offers several savings products, but none carry the rates you would find in a high yield savings account. Their standard savings accounts—including the TD Savings Account and TD Money Market Savings Account—pay rates that are typically lower than what online banks and credit unions offer for high yield products. As of now, TD does not market or maintain a separate high yield savings product.
If you bank with TD and want higher interest on savings, you have two practical paths: move money to a different bank that offers high yield rates, or keep your TD account for checking and bill pay while opening a high yield account elsewhere. Many people do both—they maintain a TD checking account for convenience and deposit a portion of savings into a high yield account at another institution.
Key Takeaways
- TD Bank does not offer a high yield savings account; their savings products pay rates well below what high yield accounts typically offer.
- TD's Money Market Savings Account is their highest-rate savings product, but it still does not compete with rates from online banks or credit unions.
- You can open a high yield savings account at a different bank while keeping your TD checking account active for everyday use.
- High yield accounts at online banks and credit unions often pay rates that are 10 to 20 times higher than TD's standard savings rates.
How TD's savings rates compare to high yield accounts
TD's savings accounts typically pay between 0.01% and 0.05% annual percentage yield (APY), depending on the account type and your balance. A high yield savings account at an online bank or credit union usually pays between 4% and 5% APY, though rates change based on Federal Reserve decisions. The difference is substantial: on a $10,000 deposit, TD might pay you $1 to $5 per year, while a high yield account would pay $400 to $500 per year.
TD's Money Market Savings Account is their premium savings product and requires a higher opening deposit (often $2,500 or more), but it does not pay significantly more than their standard savings account. The rate structure is tiered—meaning you earn a slightly higher rate on larger balances—but even the top tier does not approach high yield rates. If rate is your priority, this account does not close the gap.
Why TD does not offer high yield savings
Large traditional banks like TD operate differently from online banks. TD maintains thousands of physical branches, employs thousands of staff, and pays for real estate, technology, and operations across a wide footprint. Those costs are passed along to customers through lower interest rates on savings. Online banks have lower overhead because they have no branches and minimal staff, so they can offer higher rates on deposits.
TD's business model prioritizes lending (mortgages, auto loans, credit cards) over attracting deposits through high rates. They generate revenue primarily from the interest they charge borrowers, not from paying depositors. This is typical for large regional and national banks—they compete on convenience and service, not on savings rates.
Where to open a high yield savings account if you want one
Online banks like Marcus by Goldman Sachs, Ally Bank, and American Express Personal Savings offer high yield accounts with no monthly fees and no minimum balance requirements. Credit unions often offer high yield savings accounts as well, though you must be a member (membership requirements vary by credit union). You can compare current rates across these institutions on financial comparison websites, though rates change frequently.
Opening an account at another bank does not require you to close your TD account. Many people maintain both: a TD checking account for bill pay and debit card use, and a high yield savings account elsewhere for money they are not spending in the near term. Transfers between banks typically take one to two business days, so you can move money when you need it.
What to consider before switching banks for savings
If you currently use TD for checking and savings together, moving only your savings to another bank means managing two institutions. You will need to set up a separate login, monitor a separate account, and transfer money between them. For some people, the extra interest income justifies this small inconvenience. For others, the simplicity of one bank matters more than the rate difference.
Consider also whether you use TD's other services—such as their credit card, auto loan, or mortgage. If you do, closing your savings account will not affect those products, and you may still benefit from any relationship discounts or perks. If you use only TD for savings, switching is straightforward and costs nothing.
How high yield rates work and what affects them
High yield savings rates are not fixed. They move up and down based on the Federal Reserve's benchmark interest rate, which changes several times per year. When the Fed raises rates, high yield accounts typically raise their rates within days or weeks. When the Fed cuts rates, high yield accounts cut theirs as well. TD's rates move the same way, but they start from a much lower baseline and do not rise as quickly.
The rate you see advertised is the APY, which accounts for compounding (interest earned on interest). Most high yield accounts compound interest daily, meaning you earn a tiny bit of interest on yesterday's interest. Over a year, this compounds into a meaningful difference from simple interest. TD's accounts also compound daily, but the starting rate is so low that compounding makes little difference.
Frequently Asked Questions
Can I keep my TD checking account and move only my savings to another bank?
Yes. Your checking and savings accounts are separate products, and closing one does not affect the other. You can keep your TD checking account for bill pay and debit card use while opening a high yield savings account at a different bank. Transfers between the two banks take one to two business days.
Will switching to a high yield account at another bank affect my credit score?
No. Opening a savings account does not trigger a hard credit inquiry and does not affect your credit score. Savings accounts are not credit products. Your credit score is based on borrowing and repayment history, not on where you keep your money.
What happens to my money if the bank offering the high yield account fails?
Deposits at banks and credit unions are insured by the FDIC (Federal Deposit Insurance Corporation) or NCUA (National Credit Union Administration) up to $250,000 per account holder per institution. This means your money is protected even if the bank fails. Check that any bank you choose carries this insurance before you open an account.
Do high yield savings accounts have withdrawal limits?
No federal limit exists on how often you can withdraw from a savings account. However, some banks impose their own limits or charge a fee for withdrawals beyond a certain number per month. Read the account terms before opening to understand any restrictions. Most high yield accounts allow unlimited withdrawals with no penalty.
Is the interest from a high yield savings account taxable?
Yes. Interest earned on any savings account, whether at TD or a high yield bank, is taxable income. The bank will send you a 1099-INT form at the end of the year if you earned $10 or more in interest. You report this on your tax return. High yield accounts generate more interest, so your tax liability will be higher, but the after-tax gain is still larger than TD's rates.