TD Bank pays higher savings rates than most of its competitors, with no minimum opening deposits

Summary List Placement

TD Bank (Member FDIC) has two savings accounts: Beyond Savings and Simple Savings. The better account for you depends on how much money you plan to keep there.

Note that while TD Bank pays slightly higher rates than most brick-and-mortar banks, you can find much better rates with online banks.

TD Beyond Savings rates
Standard savings rates

At the very minimum, you’ll earn the following standard savings rates with a TD Beyond Savings Account:

Balance
Standard APY

$0.01 – $19,999.99
0.01%

$20,000 – $249,999.99
0.03%

$250,000 +
0.05%

Relationship savings rates

TD Bank makes it pretty easy to qualify for a “relationship rate,” or a higher rate as a reward for having another TD Bank product.

You’ll earn the following relationship rates when you link your TD Beyond Savings Account to a TD Bank personal checking account, small business checking account, credit card, mortgage, or home equity loan:

Balance
Relationship APY

$0.01 – $19,999.99
0.01%

$20,000 – $99,999.99
0.05%

$100,000 – $249,999.99
0.10%

$250,000 +
0.15%

TD Beyond Savings Account

You need a relatively high balance to earn a high interest rate with TD Bank, but its rates are better than what most brick-and-mortar banks pay. If you’re open to banking online, though, then you can find online banks that pay higher rates with no minimum balance requirements.

TD Simple Savings rates

The TD Simple Savings Account pays 0.05% APY on all balances.

TD Simple Savings Account

Your decision between the two savings accounts could come down to how much money you plan to keep in the account. You’ll earn a higher rate with TD Simple Savings if you a) keep under $20,000 in savings, and b) don’t qualify for relationship rates. However, the difference is minimal.

How TD Bank savings rates compare

We compared TD Bank savings rates with what you’ll earn with two other brick-and-mortar banks along the East Coast: Bank of America and Wells Fargo.

Savings APY

0.01% to 0.35% APY

Savings APY

0.01% to 0.05% APY

Savings APY

0.01% to 0.02% APY

Savings sign-up bonus

$200

Savings sign-up bonus

None

Savings sign-up bonus

None

Minimum deposit

$0

Minimum deposit

$100

Minimum deposit

$25

TD Bank TD Beyond Savings Account
Bank of America Bank of America Advantage Savings Account
Wells Fargo Wells Fargo Way2Save® Savings Account

TD Bank savings rates vs. Bank of America savings rates

Bank of America Advantage Savings pays 0.01% APY on most balances, but you can earn a little more if you qualify for Preferred Rewards. The Preferred Rewards tiers are as follows:

Gold: Earn 0.02% APY with a three-month average combined balance of $20,000 to $49,999.99 in all Bank of America bank accounts or Merrill investments

Platinum: Earn 0.03% with a three-month average combined balance of $50,000 to $99,999

Platinum Honors: Earn 0.05% with a three-month average combined balance of $100,000 or more

 

Even Bank of America’s Preferred Rewards rates are pretty low. If you plan to maintain a high balance, you may want to open a TD Beyond Savings Account to earn more than Bank of America’s maximum rate.

TD Bank savings rates vs. Wells Fargo savings rates

Wells Fargo pays low rates on savings. You’ll earn just 0.01% APY with the Wells Fargo Way2Save® Savings Account, and 0.01% to 0.02% APY with the Platinum Savings Account.

 

You’re better off opening a TD Simple …read more

Source:: Business Insider