TD Bank has 2,398 retail locations along the east coast and in Canada. The bank bills itself as “America’s Most Convenient Bank” as it offers online, mobile and phone banking; plenty of branches; and longer hours than many banks. Some branches are open on weekends and certain holidays.
CDs are a safe investment and provide a guaranteed rate of return, making them a popular choice for people who don’t want a lot of risk. If you’re shopping for a CD, this review of TD Bank CDs might help you decide which CD is best for you.
TD Bank offers four types of CDs with different terms. The CD rates are guaranteed for the life of the term. None of the CDs charges maintenance fees, and you only need $250 to get open your account. Here are the four CDs you can get at TD Bank:
TD Choice CD
TD Bank’s TD Choice CDs offer CD interest rates that increase as your balance grows. Your rate depends on the term of your CD and the amount you invest. As of April 23, 2018, if you invest $5,000 in a 12-month TD Choice CD, you will earn 0.30% APY. If you invest over $100,000, however, your interest rate will be 0.50% APY. The TD Choice CD is offered in other terms, although the longer terms do not necessarily mean higher interest rates. For example, the CD rates for the 12-month CD were higher than those of the 18-month, three-year and five-year terms.
You can get a higher rate, referred to by TD Bank as a “rate bump,” if you have an eligible TD Bank checking account. Your $5,000 investment in a 12-month CD will earn 1.25% APY, and any investment over $10,000 earns 1.75% APY with the rate bump.
TD No-Catch CD
TD Bank also offers the TD No-Catch CD, which allows for one withdrawal during the term of the certificate. The ability to make a withdrawal is an advantage over most CDs that impose a penalty for withdrawing any money before the CD matures. The No-Catch CD is only available in six-month or 12-month terms. Any size investment earns 0.15% APY for six months or 0.20% APY for 12 months.
TD Step Rate CD
The TD Step Rate CD increases your rate each year on a three-year or five-year CD. You also have the option to make a full or partial withdrawal within 10 calendar days of the anniversary, with no penalty. For a three-year Step Rate CD the composite interest rate is 0.33% APY, and for a five-year CD the rate is 0.64% APY.
TD IRA Add-Vantage CD
The TD IRA Add-Vantage CD addresses one of the biggest problems with using a CD for your IRA — the inability to add to it. Instead, this CD allows you to deposit funds during the term. You can make incremental deposits of at least $500 at any time. IRA CD rates are relatively low, however, at 0.25% APY for 12 months.
Advantages of TD Bank CDs
TD Bank offers a lot of different bank CDs, so you can select a better interest rate based on your balance and the term you prefer. Other benefits of TD Bank CDs include:
- The rate bump offered for having a TD Bank account is a nice perk.
- The ability to add or withdraw money on some of the CDs is a convenient offering.
- TD Bank and the CDs are FDIC-insured.
- Longer branch hours are convenient.
Disadvantages of TD Bank CDs
Although certain rates are quite competitive, others are not. For example, a three-year TD Choice CD pays just 0.50% APY if you have less than $10,000 to invest, with or without the rate bump. Other possible drawbacks to TD Bank CDs include:
- The rate structure might be a little confusing to some people.
- Many internet banks pay much more interest.
- CD rates can vary by region. You’ll need to review the CD interest rates carefully to ensure you get the best rate for the amount you’re investing and the term you want.
TD Bank offers a variety of CD rates and terms, and some are more competitive than others. You can get a better CD rate if you have an eligible TD Bank checking account. The extended branch hours are make it easier and convenient for a customer to make it in outside of regular working hours. You can contact your local branch to review the TD Bank CD rates for your area.