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TD Bank Review: Savings, Checking, CD, Money Market, and IRA Accounts

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TD Bank got an early start in the 1850s. Today, it’s one of the largest banks in the nation. Even though it’s a nationwide bank, you can really go into a physical branch only if you live along the East Coast. If you are that lucky, you can take your pick from over 1,200 branches, many of which have convenient extended hours during the week and on weekends.

People living in the Midwest and on the West coast will have to suffice with online-only banking. But, rest assured, they still make it easy: they maintain a 24/7 customer service line if you do need to chat with a real person.

We’ll go over everything you need to know about TD Bank’s deposit accounts in this article. One important note: TD Bank’s rates vary depending on where you live. To compare apples to apples, we’ll look at the rates from Cherry Hill, N.J., which is where TD Bank is headquartered. However, we recommend checking your local rates when deciding whether these accounts are right for you. All rates are current as of Dec. 4, 2017.

TD Bank Savings Accounts

TD Simple Savings account

Simply low savings for a fee-heavy savings account.

APY

Minimum Balance Amount

0.05%

$0 ($300 to waive monthly maintenance fee)

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $5 ($4 if you’re signed up for online statements)
  • How to waive the account maintenance fee:
    1. Keep at least $300 in your account
    2. Have a linked TD student checking account
    3. Be under age 18 or over age 62
    4. Transfer at least $25 per month from a TD Bank account and have a linked TD Bank personal checking account (but this will only waive the fee for 12 months)
  • ATM fees: None if using a TD ATM; $3 for non-TD ATMs (plus whatever surcharge fees the ATM’s owner tacks on).
  • ATM fee refunds: None.
  • Overdraft fees: $35 for each item, up to five items per day.

You’ll need to keep an eye out for fees with this account. It’s not hard to waive the monthly account fee if you keep it stocked full of savings (which is how you should use a savings account, after all), but if you decide to empty the account, you’ll have to pay this steep monthly fee. Furthermore, the rates offered are very low, especially when compared with savings accounts at other banks.

Opening a Simple Savings account with TD Bank takes only a few minutes. You’ll need basic personal information about yourself, a photo ID, and a way to fund your new account. You can apply online, over the phone or by visiting a local branch.

TD Preferred Savings account

Moderate interest rates for high-balance savers.

 

$0.01 - $19,999.99

$20k - $49,999.99

$50k - $99,999.99

$100k - $249,999.99

$250k - $499,999.99

$500k - $999,999.99

$1M – $9,999,999.99

$10M+

APY with standard rate

0.05%

0.20%

0.35%

0.50%

0.50%

0.50%

0.50%

0.45%

APY with bump rate

0.10%

0.50%

0.75%

1.00%

1.00%

1.00%

1.00%

0.95%

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $15 ($14 if you’re signed up for online statements)
  • How to waive the account maintenance fee: Keep at least $20,000 in your account.
  • ATM fees: None. However, you may be charged a surcharge fee (i.e., the fee that the ATM’s owner tacks on) unless you keep at least $2,500 in your account.
  • Overdraft fees: $35 for each item, up to five items per day.

TD Bank does offer semi-OK returns for their Preferred Savings account, with a catch: You’ll need to keep a lot of money in it. Otherwise, you’ll face a hefty monthly account fee that will wipe away your earnings.

For example, let’s say that you have $15,000 in your account. That’s $5,000 under the $20,000 threshold needed to waive the $15 monthly fee. If you receive the rate bump for having another eligible TD Bank account, you’ll earn $1.25 in interest that month — meaning you’ll lose $13.75 after paying the monthly account maintenance fee.

You can qualify for the higher bump rates by also having one of the following types of accounts with TD Bank and making three transactions per month with it: a mortgage, a home equity loan, a credit card, or a personal or small business checking account.

Opening a Preferred Savings account with TD Bank is simple and takes only a few minutes. You’ll need basic personal information about yourself, a photo ID, and a way to fund your new account. You can apply online, over the phone, or by visiting a local branch.

How TD Bank’s savings accounts compare

TD Bank’s savings accounts are pretty lackluster. They carry the potential for a lot of fees and for very little return.

Their Preferred Savings account in particular does offer high earning potential with interest rates up to five times greater than the national average. But you’ll need to have heavy pockets to be able to reach those levels, in addition to meeting a list of other requirements to waive the monthly fee and be eligible for these high interest rates.

Most people probably won’t be able to reach these high interest rates. But there’s good news: There are many other high-interest savings accounts that offer better rates without so much fine print holding you back.

TD Bank Checking Accounts

TD Premier Checking account

Earn low interest rates for keeping a high balance in your checking account.

Minimum Balance Amount

$0.01 - $2,499.99

$2,500 - $49,999.99

$50k - $249,999.99

$250k+

APY

0.00%

0.05%

0.05%

0.05%

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $25
  • How to waive the account maintenance fee: Keep at least $2,500 in your account.
  • ATM fees: None. However, you may be charged a surcharge fee (i.e., the fee that the ATM’s owner tacks on) unless you keep at least $2,500 in your account.
  • Overdraft fees: $35 for each item, up to five items per day.

If you’re looking to earn interest on the money held within your checking account, you might consider this account. Just be careful: you’ll need to keep a pretty high balance to a) earn any interest at all, and b) avoid the high monthly account fee.

A few minor side benefits of having this account also include things like free bank checks and money orders, and no service charge for more obscure things like stop payments on checks, incoming wire transfers and paper statements. You’ll also get a 0.25% interest rate reduction if you decide to apply for a home equity line of credit.

If high interest rates on your checking account with less fees are what you’re after, there are actually many other better online checking accounts to choose from.

Opening a Premier Checking account with TD Bank is simple and takes only a few minutes. You’ll need basic personal information about yourself, a photo ID, and a way to fund your new account. You can apply online, over the phone or by visiting a local branch.

TD Convenience Checking account

A standard-level checking account — but stay vigilant for high fees.

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $15
  • How to waive the account maintenance fee: Keep at least $100 in your account.
  • ATM fees: None if using a TD ATM. $3 for non-TD ATMS (plus whatever surcharge fees the ATM’s owner tacks on).
  • ATM fee refunds: None.
  • Overdraft fees: $35 for each item, up to five items per day.

If you can’t keep the required $2,500 in your checking account to waive the monthly fee for the TD Premier Checking account, consider this one. You still need to keep some cash in this account to waive the $15 monthly fee, but at $100, it’s much more manageable.

Unfortunately, you’ll have to sacrifice earning any return on your funds with this account, since it pays no interest. But there still are some minor perks that come with this account. You’ll get a discount on your first order of checks, and discounts on TD Bank home loans and home equity lines of credit.

Opening a Convenience Checking account with TD Bank is simple and takes only a few minutes. You’ll need basic personal information about yourself, a photo ID, and a way to fund your new account. You can apply online, over the phone or by visiting a local branch.

TD Simple Checking account

Simply high fees for a basic-level checking account.

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $5.99
  • ATM fees: None if using a TD ATM. $3 for non-TD ATMS (plus whatever surcharge fees the ATM’s owner tacks on).
  • ATM fee refunds: None.
  • Overdraft fees: $35 for each item, up to five items per day.

As far as checking accounts go, this isn’t really a good one. It charges a high monthly account fee and there’s no way to waive the fee. That’s a bit ridiculous with so many free checking accounts.

The only reason you might choose this checking account is if you can’t afford to keep the minimum $100 deposit in the TD convenience checking account to waive that monthly account fee. But if you’re not able to do that, you’ll pay out $100 in fees in a little over a year with this account anyway, so what’s the point?

You do get minor perks as with the other accounts — a discount on your first order of checks, and a discount on a home loan or home equity line of credit — but let’s be honest: That’s probably not going to save you a whole lot of money.

Opening a Simple Checking account with TD Bank is simple and takes only a few minutes. You’ll need basic personal information about yourself, a photo ID, and a way to fund your new account. You can apply online, over the phone or by visiting a local branch.

TD Relationship Checking account

Small earnings for big account requirements.

  • Minimum opening deposit: $0
  • Interest rate: 0.03% APY
  • Monthly account maintenance fee: $25
  • How to waive the account maintenance fee: Keep at least $20,000 in all of your TD Bank accounts combined (including checking, savings, loans, etc — but not credit cards).
  • ATM fees: None.
  • ATM fee refunds: You can be refunded for any ATM surcharges (the money the ATM’s owner charges) if you keep at least $2,500 in your account.
  • Overdraft fees: $35 for each item, up to 5 items per day.

If you have existing deposit (savings, checking, or CDs) or loan accounts with TD Bank, you can actually leverage them to earn at least something on the money in your checking account. It’s not much — 0.03% APY — but it’s still better than nothing.

This account also comes with a discount on home loans and home equity lines of credit, You’ll also get a few more perks than with their other checking accounts, such as free checks (not just a discount), free services that normally come with high fees (such as a stop payment order, overdraft transfers or money orders), and a fee waiver for another checking account and a savings account.

In return, just keep a close eye on your accounts to make sure you are meeting the requirements to waive the monthly fee. $25 per month is not a fee you want to pay.

Opening a Relationship Checking account with TD Bank is simple and takes only a few minutes. You’ll need basic personal information about yourself, a photo ID, and a way to fund your new account. You can apply online, over the phone or by visiting a local branch.

TD 60 Plus Checking account

A great checking account for seniors, but keep an eye on the account balance.

  • Minimum opening deposit: $0
  • Interest rate: 0.05% APY
  • Monthly account maintenance fee: $10
  • How to waive the account maintenance fee: Keep at least $250 in your account.
  • ATM fees: None if using a TD ATM. $3 for non-TD ATMS (plus whatever surcharge fees the ATM’s owner tacks on).
  • ATM fee refunds: None.
  • Overdraft fees: $35 for each item, up to five items per day.

If you’re over age 60, you are eligible for this account. TD Bank has generously waived many of its high fees for some account services. You’ll get free money orders, free checks and free paper statements. This account also comes with the standard rate discounts on home loans and home equity lines of credit.

Plus you’ll earn interest on your balance. Not a lot of interest, but 0.05% APY is better than 0.00% APY.

We recommend this account only if you can keep at least $250 in your account to waive the monthly fee. Otherwise, the $10 monthly fee will wipe out any interest you’ll earn.

Opening a 60 Plus Checking account with TD Bank is simple and takes only a few minutes. You’ll need basic personal information about yourself, a photo ID, and a way to fund your new account. You can apply online, over the phone or by visiting a local branch.

TD Student Checking account

A no-frills student checking account with no monthly fee.

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $0
  • ATM fees: None if using a TD ATM. $3 for non-TD ATMS (plus whatever surcharge fees the ATM’s owner tacks on).
  • ATM fee refunds: None.
  • Overdraft fees: $35 for each item, up to five items per day.

This is perhaps one of TD Bank’s best checking accounts, but only because it’s the only one not to come with a monthly account maintenance fee. Full-time students under age 24 are eligible to open this account. (You’ll need a joint checking account with a parent if you’re under age 18). This account will automatically transfer over to a Convenience Checking account after your 24th birthday or five years from the account opening, whichever occurs first.

You won’t earn any interest on this account, but you will get some other benefits. If you link a TD Simple Savings account alongside this checking account, you won’t have to pay the $5 monthly fee for the savings account. You’ll also get a discount on your first box of checks. You can even get a discount on a home loan or a home equity line of credit, but as a student, are you really likely to use that?

Opening a Student Checking account with TD Bank is simple and takes only a few minutes. You’ll need basic personal information about yourself, a photo ID and a way to fund your new account. You can apply online, over the phone or by visiting a local branch. You’ll also need to provide either your student ID or a student loan bill or receipt to prove you’re actually a student.

How TD Bank’s checking accounts compare

TD Bank does offer a lot of different types of checking accounts. This is nice because it offers you a wider range of ways to avoid their notorious account fees — and there are many to watch out for.

Plus, many of these accounts don’t even earn any interest, and when they do, the minimum balance requirements are often far above what you’d likely be keeping in a checking account anyway. If you’re looking for the best checking account possible, you’d be better off looking elsewhere unless you really are attached the TD Bank.

TD Bank CD Rates

TD Choice CDs

Moderate returns if you have a TD Bank Checking account.

Standard rate

 

$250 - $9,999.99

$10k - $49,999.99

$50k - $99,999.99

$100k+

3 months

0.10%

0.15%

0.15%

0.20%

6 months

0.15%

0.20%

0.20%

0.25%

9 months

0.20%

0.25%

0.25%

0.30%

12 months

0.30%

0.35%

0.40%

0.50%

18 months

0.30%

0.35%

0.40%

0.50%

24 months

0.35%

0.40%

0.45%

0.55%

3 years

0.40%

0.45%

0.50%

0.65%

5 years

0.45%

0.50%

0.60%

0.70%

Bump Rate

 

$250 - $9,999.99

$10k - $49,999.99

$50k - $99,999.99

$100k+

3 months

0.15%

0.20%

0.20%

0.25%

6 months

0.20%

0.25%

0.30%

0.35%

9 months

0.25%

0.30%

0.35%

0.40%

12 months

0.65%

0.80%

0.90%

1.10%

18 months

0.40%

0.45%

0.50%

0.60%

24 months

0.45%

0.50%

0.55%

0.65%

3 years

0.80%

1.00%

1.10%

1.30%

5 years

0.75%

0.90%

1.00%

1.10%

TD Bank’s Choice CDs are their standard line of CDs. You’ll need at least $250 to invest in them, which is a pretty low requirement and makes saving accessible for most people. Of course, you’ll earn higher rates if you put in much larger amounts of cash. You can also earn higher “bump rates” if you hold a checking account with TD Bank. You’ll also earn higher rates for larger deposits and longer terms.

Just be aware when you’re choosing longer terms, however, that you’ll pay an early withdrawal penalty if you do need to take that cash out early. You also can’t take out your cash at all for the first seven days after you initially open your CD. Early withdrawal penalties depend on the original term of the CD and are as follows:

  • < 3 months: All interest
  • 3 months < 1 year: 3 months’ worth of interest
  • 1 year < 2 years: 6 months’ worth of interest
  • 2 years < 3 years: 9 months’ worth of interest
  • 3 years < 4 years: 12 months’ worth of interest
  • 4 years < 5 years: 18 months’ worth of interest
  • 5 years: 24 months’ worth of interest

Once you open your account, you can’t add any more funds until the CD’s term is over. When that happens, your CD will automatically renew to another one of the same length with whatever the current interest rate is. But you have 10 days after this happens to decide what to do with it — withdraw the cash penalty-free, add in more funds or just let the CD continue.

Opening a Choice CD with TD Bank is simple and takes only a few minutes. You’ll need basic personal information about yourself, a photo ID and a way to fund your new account. You can apply online, over the phone or by visiting a local branch.

TD No-Catch CDs

Moderate returns that give you the flexibility of making a free withdrawal once per term.

CD Term

APY

6 months

0.15%

12 months

0.20%

If the idea of having your money locked away makes you a little queasy, the No-Catch CD might be a good choice for you. It’s currently only offered in two term lengths — six and 12 months. Once per term, you’re allowed to make one withdrawal without paying an early withdrawal penalty if you need the cash. But remember, you can only make a withdrawal after the account has been open for at least seven days. If you need to make more than one withdrawal, you’ll pay a penalty for each additional transaction.

This will save you from paying a penalty of three months’ worth of interest (for the six-month CD) or six months’ worth of interest (for the 12-month CD). In return for this advantage, you’ll get a slightly lower return on the 12-month CD than the normal TD Choice CD (without the higher bump rates, that is). The interest rate is currently the same for the six-month Choice CD.

Just as with the TD Choice CD, you can open a TD No-Catch CD with at least $250. After the CD matures, it’ll roll over into another CD of the same term length (but with the current interest rate), and you’ll get 10 days to withdraw the money, add funds or let it continue in the current CD.

Opening a No-Catch CD with TD Bank is simple and takes only a few minutes. You’ll need basic personal information about yourself, a photo ID, and a way to fund your new account. You can apply online, over the phone or by visiting a local branch.

TD Step Rate CDs

Higher rates over time with more frequent penalty-free access to your cash.

CD Term

APY

3 years

Year 1: 0.25%
Year 2: 0.30%
Year 3: 0.45%
Composite: 0.33%

5 years

Year 1: 0.35%
Year 2: 0.40%
Year 3: 0.55%
Year 4: 0.70%
Year 5: 1.19%
Composite: 0.64%

If you really want frequent penalty-free access to your cash but want higher rates than the No-Catch CDs offer, consider the Step Rate CDs. You can open them with as little as $250.

These CDs will allow you to make one penalty-free withdrawal per year during a 10-day window around your account’s anniversary. If you make a withdrawal outside of these windows, you’ll face an early-withdrawal penalty of 12 months’ worth of interest (for a three-year CD), or 24 months’ worth of interest (for a five-year CD).

If you leave some or all of your money in the account on each anniversary, you’ll be rewarded with sequentially higher interest rates until the term of the CD ends. When that happens, it’ll automatically roll over into a 12-month Step Rate CD with the current interest rate of the day. But you’ll still have another 10-day window where you can add or withdraw funds or let the CD investment continue.

How TD Bank’s CDs compare

TD Bank does offer a nice suite of CDs that allow you more frequent access to your money. This is especially helpful for folks who want to earn higher rates than their paltry savings and checking accounts (when interest is even earned at all), but still want to be able to get their money on a more frequent basis if needed.

Compared with other banks, however, the interest rates offered on these CDs are fairly low. If higher interest rates are what you’re after, consider these CD accounts with higher rates.

TD Bank IRA Accounts

TD Simple Savings IRA

Guaranteed low rates on your retirement savings.

APY

Minimum Balance Amount

0.05%

$0.01

The TD Simple Savings IRA account is the mirror image of its regular TD Simple Savings account, but in an IRA form. And, just like the regular TD Simple Savings account, it earns peanuts for interest.

Its saving grace is that the monthly maintenance fee is waived for the IRA version of this account (which would normally cost you up to $5 per month). You’ll also need at least $300 to open this account, making it more accessible if you’re just starting to save for retirement and don’t have a lot of cash yet.

Another disadvantage of this account is that you can only open them in a local branch — so, if you’re not near any branches, this account will be unavailable to you.

TD Preferred Savings IRA

Higher (but still low) rates for having larger balances and linked TD accounts.

 

$0.01 - $19,999.99

$20k - $49,999.99

$50k - $99,999.99

$100k - $249,999.99

$250k - $499,999.99

$500k - $999,999.99

$1M - $9,999,999.99

$10M +

APY with Standard Rate

0.05%

0.20%

0.35%

0.50%

0.50%

0.50%

0.50%

0.45%

APY with Bump Rates

0.10%

0.50%

0.75%

1.00%

1.00%

1.00%

1.00%

0.95%

If you’d still like to save for your retirement using a plain-vanilla savings account but want to earn slightly higher rates, the TD Preferred Savings IRA might be for you. You’ll need at least $20,000 to open an account, but there are no monthly maintenance fees.

You can also earn higher interest rates in two ways. First, you’ll earn more by keeping larger balances in your account (the highest rates are offered on balances between $100,000 and $9,999,999). Second, you can earn higher “bump rates” if you have a another linked TD Bank account, such as a checking account, or even a mortgage or a credit card.

As with the rest of their retirement savings account, you can only open this account by going to a local branch in-person. You cannot open this account online or over the phone, so you’re out of luck if you don’t have a local branch near you.

TD Choice IRA CDs

Getting warmer… but still pretty low rates on an IRA CD.

Standard rate

 

$250 - $9,999.99

$10k - $49,999.99

$50k - $99,999.99

$100k+

3 months

0.10%

0.15%

0.15%

0.20%

6 months

0.15%

0.20%

0.20%

0.25%

9 months

0.20%

0.25%

0.25%

0.30%

12 months

0.30%

0.35%

0.40%

0.50%

18 months

0.30%

0.35%

0.40%

0.50%

24 months

0.35%

0.40%

0.45%

0.55%

3 years

0.40%

0.45%

0.50%

0.65%

5 years

0.45%

0.50%

0.60%

0.70%

Bump Rate

 

$250 - $9,999.99

$10k - $49,999.99

$50k - $99,999.99

$100k+

3 months

0.15%

0.20%

0.20%

0.25%

6 months

0.20%

0.25%

0.30%

0.35%

9 months

0.25%

0.30%

0.35%

0.40%

12 months

0.65%

0.80%

0.90%

1.10%

18 months

0.40%

0.45%

0.50%

0.60%

24 months

0.45%

0.50%

0.55%

0.65%

3 years

0.80%

1.00%

1.10%

1.30%

5 years

0.75%

0.90%

1.00%

1.10%

These CDs are also the mirror image of their regular TD Choice CD accounts, but in an IRA form. You can also open these CDs with a minimum $250 deposit, but of course you’ll earn higher rates if you put more money in. Still, if you’re just starting out and you really want a TD Bank IRA, this is one of your lowest-barrier options. You can also earn higher rates if you own another TD Bank checking account.

If you need to withdraw the money before the term is up, you’ll face the following early withdrawal penalties depending on the original term length of the IRA CD:

  • < 3 months: All interest
  • 3 months < 1 year: 3 months’ worth of interest
  • 1 year < 2 years: 6 months’ worth of interest
  • 2 years < 3 years: 9 months’ worth of interest
  • 3 years < 4 years: 12 months’ worth of interest
  • 4 years < 5 years: 18 months’ worth of interest
  • 5 years: 24 months’ worth of interest

To open this IRA CD you’ll need to go into a local TD Bank branch in person. No phone or online options exist for those away from a local branch, unfortunately.

TD IRA Add-Vantage CD

Term

APY

12 months

0.25%

One of the disadvantages of CDs is that you generally can’t add more money to them once they get started. That’s a real pain if you do come into some more money and want to take advantage of the higher rates that CDs offer. This is especially true if you’re relying on CDs as a part of your retirement savings strategy.

The TD IRA Add-Vantage CD adds a neat little feature to get around this. You can deposit more money into the account at any time, as long as you follow these two rules:

  1. You can only add money in $500 increments
  2. You can’t make more than $250,000 in deposits during the CD’s term

Thus, this IRA CD functions generally like a savings account, except you can’t withdraw your money but once per year due to the sole 12-month CD term offered. If you do withdraw the money, you’ll face an early withdrawal penalty of six months’ worth of interest.

This CD is also only available to people who can visit a local branch to open an account. You’re out of luck if you don’t live near a TD Bank branch, unfortunately.

How TD Bank’s IRA CDs Compare

The trend in low rates for TD Bank’s accounts continues. These rates are all-around low compared with the best IRA CD rates out there.

CDs already offer notoriously low returns compared with more mainstream IRA investments like mutual funds and stocks (which in general offer nonguaranteed average returns of 7.0% per year), and that’s especially the case here. If you’re relying on TD Bank’s IRAs as your primary retirement strategy, you won’t get very far.

TD Bank Money Market Accounts

TD Growth Money Market account

Earn similar rates to TD’s Preferred Savings account, but with a lower minimum balance.

 

$0.01 - $999.99

$1k - $1,999.99

$2k - $4,999.99

$5k - $9,999.99

$10k - $24,999.99

$25k - $49,999.99

$50k - $99,999.99

$100k - $249,999.99

$250k+

APY with Qualified Amount

0.05%

0.05%

0.10%

0.15%

0.20%

0.25%

0.30%

0.35%

0.35%

APY without Qualified Amount

0.03%

0.03%

0.05%

0.10%

0.15%

0.20%

0.25%

0.30%

0.30%

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $12 (or $11 if you sign up for online statements only).
  • How to waive the account maintenance fee: Keep at least $2,000 in your account, or be age 62 or older.
  • ATM fees: None if using a TD ATM. $3 for non-TD ATMS (plus whatever surcharge fees the ATM’s owner tacks on).
  • ATM fee refunds: None.
  • Overdraft fees: $35 for each item, up to five items per day.

This account offers a nice balance between the lower balance requirements of the TD Simple Savings account and the higher rates of the TD Preferred Savings account. You only need a $2,000 minimum balance to waive the monthly fee (compared to the Preferred Savings’ $20,000 minimum balance to waive that account’s fee).

You’re also eligible to receive a higher rate if

  1. You have a linked TD Bank account
  2. You use it to make at least a $50 recurring monthly deposit into this account

How TD Bank’s Money Market account compares

Again, TD Bank comes up well short when compared with the best money market account rates available today. Plus, you need a fairly high opening deposit to even get access to this account.

This leaves savers who are just getting started high and dry, since all TD Bank offers for these folks is their Simple Savings account that offers a miniscule interest rate (and a minimum $300 deposit to avoid the monthly fee, to boot).

Overall review

We do like TD Bank’s ease of access if you’re looking to visit an in-person branch. Their local branches generally offer good hours and are open seven days per week. But for folks who don’t live near a local branch — and that’s most of the country — you’re kind of out of luck aside from the 24-hour customer service line. And if you want to open an IRA, you’re again out of luck since this must be done in person.

Furthermore, you’ll need to keep large balances in most of TD Bank’s accounts to waive high monthly fees. In return for this, you get rock-bottom interest rates. If you want to use TD Bank, we recommend you come with a hefty amount of cash.

In general, we’re left feeling rather unimpressed with these products. You can get much better rates and terms on every single one of these accounts elsewhere, without being tricked into paying out a boatload of banking fees.

Advertiser Disclosure: The card offers that appear on this site are from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all card companies or all card offers available in the marketplace.

Lindsay VanSomeren
Lindsay VanSomeren |

Lindsay VanSomeren is a writer at MagnifyMoney. You can email Lindsay here

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Fine Print Alert

Fine Print Alert: $500 Bonus Offer from Ally, Free FICO Scores and Overdraft Caution

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

Advertiser Disclosure

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In our weekly Fine Print Alert we call out any good news from the financial community and shine a spotlight on any sneaky changes in the fine print. We also share our favorite reads from the week.

FINE PRINT ALERT

Thinking about rolling over an IRA…?

Ally is offering up to a $500 bonus for making a qualifying rollover or transfer from outside Ally Bank to a new or existing Ally IRA CD or IRA Online Savings Account. The bonus is a tiered structure ranging from $100 – $500 depending on the amount of qualifying deposits, which range from $25,000 to $200,000+.”

Deposits must be made before May 31, 2015 in order to be eligible for this offer.

For more details about how to take advantage of this bonus offer, read our full blog post here.

Get your free FICO (not FAKO) score…

Five more banks and a credit union will be offering customers access to a free FICO score this year. This is indeed different than the ‘FAKO’ score you get on free credit sites. These are the actual scores each bank uses when making credit decisions.

  • Citibank: You’ll get your Equifax version of your FICO score if you hold any Citibank branded card starting later this month. Non branded cards issued by Citibank like Sears and Best Buy cards won’t get the free score.
  • Bank of America: Sometime later this year. Bank of America pulls from all 3 bureaus so it’s not clear which version of the FICO score they will offer.
  • USAA: Starting in March all credit card holders will get the Experian Vantage version of their FICO score.
  • State Employees Credit Union of North Carolina: Sometime later this year all members with credit cards will get their FICO scores. They generally use the Equifax version of the score.
  • Ally: If you have an auto loan with Ally you’ll get your score by this summer. They generally use the Transunion version of the FICO score for decisions.

Read more on our blog post.

A word of caution to TD Bank customers…

Don’t go overdraft! Don’t get even close.

TD Bank loves overdraft fees so much it’s willing to pay fines.

Courthouse News Service reports New York resident John Kashgarian has filed a class action lawsuit against TD Bank claiming egregious overdraft fees.

Specifically, he’s claiming the fees TD and other banks charged since 2010 are unreasonable and manipulative, and reordering of those fees to make accounts that are in otherwise good standing go overdraft is the biggest problem.

TD’s ‘Simple Checking’ account fee schedule says you will be hit with a $35 fee for each item overdrawn, and will let up to 5 items be overdrawn each business day. That’s $175 in fees a day. The bank is also known to participate in transaction re-ordering.

Read more about TD Bank’s history with overdraft fees on our blog.

MAGNIFYMONEY IN THE NEWS

FAVORITE READS FROM AROUND THE WEB

What Your Bank Owes You: Clarity – For example, banks ought to be required to show through third-party random sample testing that when customers trigger overdraft protection, they know what it is and what fee they will be charged. Investment brokerages ought to produce data on what proportion of their retail clients know the fees they will incur on each investment, and brokerages with low numbers penalized. A great look into whether financial literacy is worth our efforts and focus in this LA Times op-ed by Lauren E. Willis and Theresa Amato.

Where are they now? The most inspiring personal finance stories of 2014Five years since the recession officially ended, more and more stories of families overcoming insurmountable financial obstacles have begun to emerge. We’ve taken a look back at 2014 and picked our top five most inspiring personal finance stories of the year. These personal finance heroes have tackled six-figure debt, redefined the idea of retirement and turned their lifestyles upside down. Mandi Woodruff shares these five stories of financial triumph on Yahoo! Finance.

Most Americans feel they are falling behind – Forget getting ahead. Most Americans say their income isn’t even keeping up with the cost of living. Some 55% say they are falling behind, according to a new Pew Research Center study. That’s the case even though most of those polled feel the economy is recovering. Tami Luhby shares the recent data on CNN Money.

My Darkest Financial Secret – I bought my first home in July 2013. I funded the renovation with a 203k loan, but went over and had to raid my savings account to finish the project. Having no savings cushion then led me to lean on my credit cards for “emergencies” in the Fall of 2013 and by NYE 2014, I was 8,432.16 in debt. L Bee shares her story of amassing debt while she was focusing on paying it down on her site, L Bee and The Money Tree.

Advertiser Disclosure: The card offers that appear on this site are from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all card companies or all card offers available in the marketplace.

Erin Lowry
Erin Lowry |

Erin Lowry is a writer at MagnifyMoney. You can email Erin at erin@magnifymoney.com

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News

TD Bank Hit By a Class Action Lawsuit For Overdraft Fees

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

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Woman trying to protect her saving

TD Bank loves overdraft fees so much it’s willing to pay fines.

Courthouse News Service reports New York resident John Kashgarian has filed a class action lawsuit against TD Bank claiming egregious overdraft fees.

Specifically, he’s claiming the fees TD and other banks charged since 2010 are unreasonable and manipulative, and reordering of those fees to make accounts that are in otherwise good standing go overdraft is the biggest problem.

How bad are the fees?

TD’s ‘Simple Checking’ account fee schedule says you will be hit with a $35 fee for each item overdrawn, and will let up to 5 items be overdrawn each business day. That’s $175 in fees a day.

And TD will charge another $20 if your account is overdrawn for 10 business days or more.

It also encourages users to sign up for ‘TD Debit Card Advance,’ which is billed as a service that ‘may help you avoid debit card declines.’

But each time the service kicks in on a debit card transaction, you’re hit with a $35 overdraft fee.

Transaction Re-ordering

And worse, in a study last year by Moebs, TD Bank was the only of the top 10 banks to process transactions from high to low, rather than the order in which they are received.

For example, let’s say you have $1,400 in your account. A $1,500 rent check hits your account at the end of the day on Monday, while you charged a $5 cup of coffee in the morning and $10 for a sandwich on your debit card in the afternoon.

With TD, you would be hit for an overdraft fee not just for the rent check, but for the cup of coffee and lunch charge. That’e even though your account had sufficient funds when the coffee and lunch charges went through.

So instead of paying one $35 fee for the overdrawn rent check, you pay it three times, for $105 in fees.

Koshgarian says about this practice “In these instances, defendants manipulate and alters the timing of the customer’s transactions, in a manner inconsistent with Defendants’ contractual obligations, in order to maximize overdraft fees imposed on the customer. Thus, it is through manipulation and alteration of customers’ transaction records in a manner inconsistent with defendants’ contractual obligations that defendants maximizes overdraft fees imposed on customers.”

He’s going after fees charged since 2010.

That’s because TD Bank has already paid $62 million to settle another overdraft case for charges dated December 1, 2003 – August 15, 2010. TD customers who paid more than one fee in a day on an account where high to low ordering put transactions over the edge were automatically reimbursed as part of the settlement.

Yet despite that settlement and payout, TD continued to charge overdraft fees on a high low basis.

Bank of America, Chase, and others paid larger settlements of over $100 million, and no longer reorder transactions for the purposes of calculating overdraft fees.

 

Advertiser Disclosure: The card offers that appear on this site are from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all card companies or all card offers available in the marketplace.

Brian Karimzad
Brian Karimzad |

Brian Karimzad is a writer at MagnifyMoney. You can email Brian at brian@magnifymoney.com

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Fine Print Alert

Fine Print Alert: TD & Moven Alliance and an Apple Rewards Program to Avoid

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

Advertiser Disclosure

fineprintalert-full

In our weekly Fine Print Alert we call out any good news from the financial community and shine a spotlight on any sneaky changes in the fine print. We also share our favorite reads from the week. 

FINE PRINT ALERT 

TD-Moven Alliance…

Toronto-Dominion Bank is partnering with Moven, an online-only checking account. Moven’s biggest appeal to consumers is instant budgeting. Moven offers instant notification with every transaction to help users stay on top of their spending in real time. TD Bank does not offer money management tools and will use Moven to integrate into the bank’s current mobile app, but only in its Canadian markets. This partnership bodes well for the future of banks offering better tools to help their customers manage their money.

Shameful Apple Rewards Program… 

Apple enthusiasts beware; the new Apple Rewards Program with Barclaycard does not have your best interests in mind. When you spend on the card you can earn points to redeem a $25 Apple Store gift card. The card is trying to lure you in by offering 0% financing (no interest for up to 18 months) when you open a new account and buy an Apple product, while simultaneously encouraging you to make charges on the card to get the $25 gift card. Plus, if you can’t pay off your Apple purchase by the end of 18 months, Barclaycard will bill you for interest from the day you made the purchase – a full 18 months worth. Find more details in this blog post.

MAGNIFYMONEY IN THE NEWS

FAVORITE READS

My Bank’s Really Good at Taking Advantage of Me “When they say it’s expensive to be poor, this is what they’re talking about,” she said. “The system penalizes lack of funds by reducing those funds even further. When you’re poor, having a bank account can actually cost more than the convenience is worth.” Darlena Cunha discusses overdraft fees and practices for The Washington Post.

5 Tax Breaks If Your ‘Personal Economy’ Is Weak “You’ve probably seen those commercials about planning for your personal economy, as opposed to the general economy. The concept makes sense. For example, many folks have not yet received any noticeable uptick from the slowly (very slowly in some places) improving general economy. I know that in my own area, the overall jobs situation is still pitiful compared to 10 years ago. So let’s revisit some tax-saving opportunities that are especially relevant if your personal economy is still pretty bleak.” Bill Bischoff complies tax breaks in one convenient location for Market Watch.

‘Maybe You Have a Rich Husband?’ “We think you’re great and we’d love to offer you the job,” the woman on the phone told me. She trailed off momentarily before resuming again, “but we’re not sure there’s any way you can take it. But, we thought, ‘maybe she has a rich husband.’” I was 26 and considering a major career change that had come to represent an enormous (and scary) transition point for me: I was trying to figure out whether I wanted to stay with my mostly satisfying, comfortable job in an industry that wasn’t a core interest of mine, or move to a non-profit where I’d be contributing to a cause I really believed in, but with emotional demands that I wasn’t sure I could sustain. Leda Marritz shares her story on The Billfold.

What it takes to pay off $80,000 in debt (in three years) “When Austin Netzley graduated from college in 2008, finding out how much he had in debt — more than $80,000 between his student loans and car loans — made him sick to his stomach.” Jonnelle Marte shares Austin Netzley’s journey to being debt free in The Washington Post.

Have questions or just want to get in touch? Tweet at us @Magnify_Money or email us at info@magnifymoney.com. 

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Advertiser Disclosure: The card offers that appear on this site are from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all card companies or all card offers available in the marketplace.

Erin Lowry
Erin Lowry |

Erin Lowry is a writer at MagnifyMoney. You can email Erin at erin@magnifymoney.com

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