TD Bank savings rates change monthly, and what you earn depends on the account type and balance tier you hold

TD Bank does not publish a single savings rate. Instead, the bank sets different rates for different account types—regular savings, money market accounts, and certificates of deposit each have their own rates—and those rates shift based on what the Federal Reserve does with its benchmark rate. The rate you actually earn also depends on how much money you keep in the account. A TD savings account with $500 in it will earn less than one with $25,000.

Because rates change frequently and vary by account type, the only way to know what TD Bank is currently offering is to check their website directly or call a branch. This guide explains how TD Bank structures its rates, what affects them, and how to compare what you might earn against other banks.

Key Takeaways

  • TD Bank sets different interest rates for savings accounts, money market accounts, and CDs, and each rate changes when the Federal Reserve adjusts its benchmark rate.
  • The amount you earn depends on your account balance tier—higher balances typically earn higher rates at TD Bank.
  • TD Bank's rates are generally lower than rates offered by online banks and credit unions, so comparing before you open an account matters.
  • You can find current TD Bank rates on their website or by calling a local branch; rates are not locked in advance and can change without notice.

How TD Bank structures savings account rates by balance

TD Bank uses a tiered rate system, meaning the interest rate you earn depends on how much money sits in your account. If you maintain a balance below a certain threshold, you earn one rate. Once you cross that threshold, your entire balance earns a higher rate. The exact thresholds and rates change, so you need to check TD Bank's current schedule.

For example, a regular savings account might have tiers at $500, $2,500, and $10,000—but those numbers and the rates attached to them are not fixed. The bank adjusts them based on market conditions and competition. This means two people with TD savings accounts opened on different dates may earn different rates even if they have the same balance today.

The difference between savings accounts, money market accounts, and CDs

TD Bank offers three main products for people who want to earn interest. A regular savings account has no withdrawal limits and no maturity date—you can take money out whenever you need it. A money market account usually pays a higher rate than savings but may require a larger opening balance and limits how many withdrawals you can make per month. A certificate of deposit (CD) locks your money for a set period—typically three months to five years—and pays a fixed rate that does not change, even if the Federal Reserve raises rates later.

If you need access to your money, a savings account is the right choice even if the rate is lower. If you have money you will not touch for at least a year, a CD often pays more and removes the temptation to spend it. Money market accounts sit in the middle: higher rates than savings, but less flexibility than a CD and more flexibility than a savings account.

Why TD Bank rates are usually lower than online banks

TD Bank operates physical branches in multiple states, which costs money. Online banks have no branches, no tellers, and no rent—so they can afford to pay higher interest rates on savings and charge lower fees on checking. If you are comparing TD Bank to an online bank like Ally, Marcus, or Discover, you will typically see the online bank offering a higher rate on the same type of account.

Whether that difference matters depends on your situation. If you use TD Bank for checking and want to keep everything in one place, the convenience might be worth a slightly lower rate. If you are moving money specifically to earn interest, an online bank or credit union will usually pay you more. The difference compounds over time—on a $10,000 balance, a 0.5% difference in rate means $50 per year in lost earnings.

How Federal Reserve rate changes affect what you earn

When the Federal Reserve raises or lowers its benchmark interest rate, banks adjust the rates they pay on savings accounts within weeks or months. TD Bank does not have to match the Fed's move exactly, and different banks move at different speeds. Some raise savings rates quickly when the Fed moves up; others lag. When the Fed cuts rates, banks often cut savings rates faster than they raised them.

This means if you lock money into a CD, you know exactly what you will earn for the entire term. But if you keep money in a savings account, your rate can drop without warning. Conversely, if rates rise, your savings rate may rise too—but not necessarily as much as the Fed's increase, and not necessarily as fast as online banks move.

Where to find TD Bank's current rates and compare them

TD Bank publishes current rates on its website under the savings and money market section. You can also call any TD branch or visit in person to ask about rates. When you call or visit, ask for the rate schedule that shows all the balance tiers and the rate for each one—do not rely on a single number, because your rate depends on your balance.

To compare TD Bank against other options, use a rate comparison tool like Bankrate, DepositAccounts, or NerdWallet. These sites track rates across banks and update them regularly. When you compare, make sure you are looking at the same account type—a TD money market account should be compared to other money market accounts, not savings accounts. Also note any minimum balance requirements or monthly fees, because a higher rate does not matter if a fee eats the earnings.

What happens to your rate if you move money or close the account

If you deposit more money into your TD savings account and cross into a higher balance tier, your rate increases on your entire balance. If you withdraw money and drop below a tier, your rate decreases. These changes happen automatically—you do not need to do anything. Some banks explore the new rate when ready; others explore it on the next statement cycle. Ask TD Bank which applies to you.

If you close your TD savings account and move the money elsewhere, you stop earning TD's rate and start earning whatever rate your new bank offers. There is no penalty for closing a savings account at TD Bank, but there may be a penalty for closing a CD early—that penalty is usually a loss of interest, not a fee. Check the CD terms before you open one.

Frequently Asked Questions

Is TD Bank's savings rate competitive with online banks?

No. Online banks typically offer higher rates on savings accounts and money market accounts because they have lower operating costs. If earning the highest possible interest is your goal, an online bank will usually pay more. TD Bank's rates are competitive with other brick-and-mortar banks but lag behind online options.

Can I lock in a rate at TD Bank?

Yes, through a CD. When you open a CD, TD Bank sets a fixed rate for the entire term—three months, six months, one year, three years, or five years. That rate does not change, even if the Federal Reserve raises rates later. Savings and money market accounts have variable rates that can change at any time.

What is the minimum balance to open a TD savings account?

TD Bank's minimum opening balance varies by account type and changes over time. Check their website or call a branch for the current requirement. Some accounts may have no minimum; others may require $25 or $100 to open. Balance requirements for earning higher rates are separate from the opening minimum.

Do I pay taxes on the interest I earn?

Yes. Interest earned in a savings account is taxable income. At the end of each year, TD Bank sends you a 1099-INT form showing how much interest you earned. You report that amount on your tax return. The interest is taxed at your ordinary income tax rate, not at a special rate.

What happens if I withdraw money from my savings account before a certain date?

Withdrawals from a regular savings account have no penalty or waiting period—you can take money out whenever you want. Money market accounts may limit the number of withdrawals per month, but there is no penalty for withdrawing. CDs have an early withdrawal penalty, usually a loss of interest. Check the CD terms to see how much interest you would lose if you need the money early.