TD Bank is the 8th largest bank in the country by assets despite mostly operating on the east coast. They have over 1,200 locations in 15 US states plus Washington D.C. and are headquartered in Cherry Hill, New Jersey.
For savers looking for fixed-rate deposit products, TD Bank offers three different types of certificates of deposit to choose from. They are:
- TD Choice Promotional CDs
- TD No-Catch CDs
- TD Step Rate CDs
All of TD Bank deposits are federally insured by the FDIC up to $250,000 per depositor. We will breakdown the APYs, terms, conditions and details of all of TD Bank’s CDs in our review below.
When viewing TD Bank’s CD rates on their website, you will first be prompted to enter your location.
After you’ve entered your location you will be able to click through their CD accounts options and view their current rates. That said, we ran this scenario in three separate locations and found the exact same annual percentage yields for each. The locations we sampled are:
- Boca Raton, Florida
- Washington D.C.
- Boston, Massachusetts
TD Choice Promotional CDs
Like all of TD Bank CDs, the TD Choice Promotional CDs feature a tiered interest rate and APY based on your deposit amount. They also feature a “relationship bump rate” which allows you to earn a slightly higher APY if you also have a TD bank checking account.
Terms range from 3 months to 5 years and come with a minimum deposit requirement of $250.
TD Choice Promotional CD Rates
| CD Term | Deposit Amount | Standard APY | Relationship APY |
| 3 month | $250 – $9,999.99 | 0.05% | 0.05% |
| 3 month | $10,000 + | 0.05% | 0.10% |
| 6 month | $250 – $9,999.99 | 0.05% | 0.05% |
| 6 month | $10,000 + | 0.05% | 0.10% |
| 9 month | $250 – $9,999.99 | 0.05% | 0.05% |
| 9 month | $10,000 + | 0.05% | 0.05% |
| 12 month | $250 – $9,999.99 | 0.05% | 0.05% |
| 12 month | $10,000 + | 0.05% | 0.10% |
| 18 month | $250 – $9,999.99 | 0.05% | 0.05% |
| 18 month | $10,000 + | 0.05% | 0.05% |
| 2 years | $250 – $9,999.99 | 0.05% | 0.05% |
| 2 years | $10,000 + | 0.05% | 0.05% |
| 3 years | $250 – $9,999.99 | 0.05% | 0.05% |
| 3 years | $10,000 + | 0.05% | 0.05% |
| 5 years | $250 – $9,999.99 | 0.05% | 0.05% |
| 5 years | $10,000 + | 0.05% | 0.05% |
To give these offers above some context, the current national average for a 12 month CD sits at 0.22% APY and the national average for a 5 year CD sits at roughly 0.47% APY.
While TD Bank calls these deposit products “promotional” their current yields are anything but. If you do decide to open one of these, please remember your money will be locked up for the duration of the deposit’s term. If you need access to your funds prior to maturity, an early withdrawal penalty will apply. If you foresee a chance that you will need these funds prior to maturity, you may want to open a “TD No-Catch CD” which allows for one penalty-free withdrawal per term.
Early Withdrawal Penalties:
Withdrawing funds from your TD Choice Promotional CD prior to maturity will cost you some or all of your interest earned. Below is a breakdown of TD Bank’s early withdrawal penalties.
- For CDs with terms of 7 to 89 days, TD Bank will deduct all accrued interest.
- For CDs with terms of 90 days to one year, TD will deduct three months’ interest.
- For CDs with terms between 1 and 2 years, TD will deduct six months’ interest.
- For CDs with terms between 2 and 3 years, TD will deduct nine months’ interest.
- For CDs with terms between 3 and 4 years, TD will deduct twelve months’ interest.
- For CDs with terms between 4 and 5 years, TD will deduct eighteen months’ interest.
Compounding Interest:
TD Bank does not state the compounding schedule on their website, however according to their CD rate calculator interest appears to be compounded monthly. Many banks, both online and brick and mortar, compound interest daily resulting in a higher annual percentage yield.
Grace Period:
As with most banks and credit unions, TD Bank has a 10 day grace period in which you can withdraw or add money to your CD penalty free. TD Bank will send you a notification prior to your deposit’s maturity, but you may want to have your own reminders set as well. If nothing is done during this grace period, your funds will roll into another CD of the same term and current APY.
TD Bank No-Catch CDs
The “No-Catch” CDs offered by TD Bank currently come with only two deposit terms to choose from: 6 months and 12 months. Although these products have featured tiered APYs in the past based on deposit amount, they all feature the same lackluster yield currently.
The major difference with these accounts is that they allow for one penalty-free withdrawal per term.
TD Bank No-Catch CD Rates
| CD Term | APY |
| 6 month | 0.05% |
| 12 month | 0.05% |
The minimum deposit requirement is $250.
Interest is compounded presumably monthly on these CDs as well and the same grace period applies. All of these CDs will automatically renew if nothing is done during the grace period.
TD Step Rate CDs
TD Bank’s Step Rate CDs function exactly as their name implies in that your interest rate takes a ‘step up’ on your anniversary each year. You have just two terms to choose from with these products: a 3 year term or a 5 year term.
As an added bonus, the Step Rate CD also come with a similar feature as the “No-Catch CD.” Upon each yearly anniversary of your CD, you will be given a 10 calendar day window in which you can add or withdraw funds penalty-free. You may withdraw any amount at this time whether it be all of your funds or just a partial amount.
3 Year TD Step Rate CD
| Year | APY |
| Composite APY | 0.10% |
| Year 1 | 0.05% |
| Year 2 | 0.10% |
| Year 3 | 0.15% |
The composite APY is simply the blended APY you will have received at the maturity of your deposit term.
5 year TD Step Rate CD
| CD Term | APY |
| Composite APY | 0.15% |
| Year 1 | 0.05% |
| Year 2 | 0.10% |
| Year 3 | 0.15% |
| Year 4 | 0.20% |
| Year 5 | 0.25% |
While the 5 year TD Step Rate CD features the highest yield of any TD Bank CD, better APYs can still be found with online banks and nationally available credit unions.
Final Thoughts
TD Bank has certainly offered decent yields and promotional CDs in the past, but their current offers are far less competitive than even the national average.
In normal interest rate environments, their tiered balances and relationship bonus allow for consumers to lock in even higher yields on their savings, but today these offers add very little incentive.
If you decide to go with a TD bank CD, the quickest way to open one of these products is online. If you’d prefer to speak to a representative you will have to go into one of their 1,200 branch locations across 15 states plus Washington D.C.