What you get with a TD Bank savings account
TD Bank savings accounts come in a few versions, and the one that makes sense depends on how much you keep in savings and how often you move money around. The most common option is the TD Savings Account, which earns interest on your balance — meaning the bank pays you a small percentage of what you hold there each month. There is no monthly fee if you keep a minimum balance (currently $100), and you can withdraw money whenever you need it.
TD also offers a Money Market Savings Account, which typically pays a higher interest rate but requires a larger minimum balance to avoid fees. The trade-off is that you commit to keeping more money in the account, and the bank rewards that by paying you more interest. Both accounts let you access your money online, by phone, or at a TD branch.
Interest rates change regularly based on what the Federal Reserve does with its benchmark rate, so what TD pays today may be different in three months. When you open an account, ask what the current rate is and whether it is competitive with other banks — you can compare rates on websites that track savings accounts across multiple banks.
Key Takeaways
- TD's basic savings account has no monthly fee if you keep $100 or more, making it accessible even if you are starting small.
- Interest rates at TD are often lower than online-only banks, so compare before opening if earning the most interest matters to you.
- You can access your money anytime without penalty, which is useful if you need savings for emergencies rather than long-term growth.
- TD's branch network and customer service may be worth the lower rate if you prefer talking to someone in person or need help managing your account.
How TD's interest rates compare to other banks
TD Bank's savings account rates are typically lower than what online-only banks like Ally, Marcus, or Discover offer. This is common — banks with physical branches and staff have higher costs, so they pay less interest to customers. If your main goal is to earn as much interest as possible on your savings, you will likely earn more elsewhere.
However, the difference matters most if you have a large balance. If you are saving $500 to $2,000, the gap between TD's rate and a higher-paying bank might be a few dollars per year. If you are saving $50,000, the difference becomes meaningful. Before you open an account, check what TD is currently paying and compare it to at least one online bank to see whether the gap matters for your situation.
Interest rates change frequently, so a rate that is low today might be competitive in a few months if the Federal Reserve cuts rates. Conversely, a rate that looks good now might fall behind if other banks raise theirs. The best approach is to check rates at the moment you are ready to open an account, not based on what you read weeks earlier.
When a TD savings account makes sense
A TD account works well if you value being able to walk into a branch and talk to someone about your money. Many people new to banking or returning after a gap prefer this — you can ask questions, get help setting up automatic transfers, or deposit cash without a fee. TD has thousands of branches across the United States, so if you live near one, that convenience has real value.
TD is also a solid choice if you want a savings account linked to a checking account at the same bank. Moving money between your own accounts is when ready and free, which makes it straightforward to set aside money for a specific goal without opening accounts at multiple banks. If you already have a TD checking account and are happy with their service, opening a savings account there requires no new paperwork or login.
A TD savings account also works if you do not have much money to start with. The $100 minimum balance is low enough that you can open an account while you are building your emergency fund, and you will not pay a fee while you do. Many online banks require $500 or $1,000 to avoid fees, which can be a barrier if you are just starting out.
When you might want to look elsewhere
If earning the highest possible interest is your priority, an online bank will almost always pay more. You do not need a branch to save money — you can deposit checks by phone camera, transfer money electronically, and withdraw cash at ATMs that are not owned by your bank (though some charge a fee). If you have $10,000 or more to save and plan to leave it untouched for months, the extra interest from a higher-paying bank adds up.
You might also want to look elsewhere if you prefer not to visit a physical location. Some people find branches convenient; others find them unnecessary and prefer handling everything online or by phone. TD does offer online and phone banking, but if you never want to step into a bank, an online-only bank removes that option entirely.
If you are saving for a specific goal with a important date — like a down payment you plan to make in two years — a high-yield savings account at an online bank will grow your money faster. The difference between 0.01% interest and 4.5% interest is substantial over time, and that gap is where online banks typically win.
How to open a TD savings account
You can open an account online, by phone, or in person at a TD branch. Online is usually fastest — you will need a government-issued ID, your Social Security number, and a way to fund the account (a debit card, another bank account, or cash if you go to a branch). The process typically takes 10 to 15 minutes, and your account opens the same day.
If you open in person, bring your ID and Social Security number, and ask the banker which savings account option fits your situation. They can explain the differences between the basic savings account and the Money Market account, show you the current interest rate, and help you set up online access so you can check your balance anytime.
Once your account is open, you can set up automatic transfers from your checking account to your savings account — for example, $50 every payday. This removes the temptation to spend money you meant to save, and it builds your emergency fund without requiring you to think about it each month.
Fees and rules to know
TD's basic savings account has no monthly maintenance fee as long as you keep at least $100 in the account. If your balance drops below $100, you will be charged a monthly fee (currently around $5, though this can change). There is no limit to how many times you can withdraw money, and no penalty for closing the account.
The Money Market Savings Account has a higher minimum balance requirement — typically $2,500 — and charges a monthly fee if you fall below it. It also may limit how many withdrawals you can make per month without a fee, though this varies. Ask about withdrawal limits when you open the account, because they affect how you can use the money.
Interest is added to your account monthly, usually on the last day of the month. The amount depends on your average balance that month and the current interest rate. You do not have to do anything to earn it — it happens automatically.
Frequently Asked Questions
Is my money safe in a TD savings account?
Yes. TD Bank is a member of the Federal Deposit Insurance Corporation (FDIC), which means your savings are insured up to $250,000. If the bank fails, the government guarantees your money. This protection applies to each account type separately, so a savings account and a checking account are each covered up to $250,000.
Can I use a TD savings account as an emergency fund?
Yes. You can withdraw money anytime without penalty, and you can access it online, by phone, or at a branch. The main drawback is that the interest rate is low, so your money grows slowly. But for an emergency fund, safety and access matter more than growth — you want the money there when you need it.
What happens if I do not meet the minimum balance?
You will be charged a monthly fee, usually around $5. If you are building your savings and expect to dip below $100 sometimes, ask whether TD offers a way to waive the fee or switch to a different account type temporarily. Some banks will work with you if you explain your situation.
Can I have multiple savings accounts at TD?
Yes. Some people open separate accounts for different goals — one for emergencies, one for a vacation, one for a car down payment. Each account earns interest separately, and you can name them to keep track of what each one is for. There is no limit to how many you can open.
How do I move money from TD to another bank?
You can transfer money electronically using the other bank's routing number and your TD account number. This usually takes one to three business days. You can also withdraw cash and deposit it at another bank, though that takes more time and you lose the interest you would have earned while the money was in TD.