CDs are considered a low-risk investment option, as they are insured by the FDIC (Federal Deposit Insurance Corporation) in the United States and by the CDIC (Canada Deposit Insurance Corporation) in Canada, up to certain limits.
TD Bank offers a variety of CD options with different terms and interest rates, allowing customers to choose the option that best fits their savings goals and needs. They also offer other savings and investment products, such as savings accounts, money market accounts, and individual retirement accounts (IRAs).
TD Bank CDs
APY Range
Minimum Deposit
Terms
Our Rating
TD Bank CDs
APY Range
Minimum Deposit
Terms
Our Rating
TD Bank CD Rates
Despite the original deposit or duration, certain TD Bank CDs yield a low rate. But, if you choose specific terms, such as 12 months, you can get a much higher rate. But, to get the highest rate, you'll need an eligible TD bank checking account. Also, remember you won't have access to long-term CDs with high rates. So, for example, if you're looking for the best CD rates for 5 years, you'll need to search other banks.
Compared to other traditional banks, TD offers higher rates. While the terms are limited, you can enjoy similar rates to what you can get with online banks, which is uncommon for traditional banks.
CD Term | APY |
|---|---|
3 Months | 1.00% – 3.00% |
6 Months | 1.00% – 5.00% |
9 Months | 1.00% – 4.00% |
12 Months | 1.00% – 4.50% |
18 Months | 1.00% – 3.51% |
24 Months | 1.00% – 3.51% |
36 Months | 1.00% – 3.51% |
48 Months | 0.05% |
60 Months (Step Rate CD) | 1.00% – 2.50% |
Overall, the rates are low. For example, if you're looking for a 6-month CD, TD offers 1.00% – 5.00% APY while you can get over 4% APY with other banks, according to our 6-month CD rates list.
How Much Can You Earn If You Deposit $100,000 Today?
If you put $100,000 into a TD Bank CD, the anticipated earnings (before taxes), assuming interest compounds everyday and there is no early withdrawal fee, are as follows:
CD Term | Interest Earned |
|---|---|
3 Months | $12
|
6 Months | $1,746
|
12 Months | $4,024
|
18 Months | $74
|
24 Months | $8,744
|
36 Months | $296
|
48 Months | $197
|
60 Months (Step Rate CD) | $742
|
Top Offers From Our Partners
How TD Bank CDs Work
The minimum deposit for all TD CDs is $250, but you must schedule a consultation with a TD banker if you wish to open a CD with a deposit of more than $1 million. Although the bank appears to pay the same yield wherever you are, rates may differ by ZIP code.
The terms of TD Bank CDs range between 3 months – 5 years. This contains terms of 3, 6, 9, 12, 18,24, 36, 48 and 60 months.
It is crucial to keep in mind that there will be fees associated with early withdrawal of funds. The fine varies depending on how long your CD is.
- Less than a 3-month term: If the term of your CD is less than six months, you will be charged all interest as a penalty on the amount withdrawn.
- 3-month to one-year period: The early withdrawal penalty you'll pay under these CD terms is 3 months of interest, subject to a maximum based on the total interest you've accrued so far.
- One-year to two-year period: The early withdrawal penalty you'll pay under these CD terms is 6 months of interest
- Two-year to 5-year period: The early withdrawal penalty you'll pay under these CD terms is 9-18 months of interes
- 2 years < 3 years: 9 months of interest
- 3 years < 4 years: 12 months of interest
- 4 years < 5 years: 18 months of interest
- +5-year period: 24 months of interest will be charged if you prematurely withdraw from a CD for five years or more.
CD Term | Early Withdrawal Penalty |
|---|---|
3 Months | 3 months of interest
|
6 Months | 3 months of interest
|
12 Months | 6 months of interest
|
18 Months | 6 months of interest
|
24 Months | 9 months of interest |
36 Months | 12 months of interest |
48 Months | 18 months of interest
|
60 Months (Step Rate CD) | 24 months of interest |
TD Bank CD Rates vs Savings Rates
While the rates on TD Bank's basic CDs are generally high, as long as you choose the higher APY terms. They are substantially higher than the rates on a typical TD savings account.
The typical savings accounts do, however, charge a monthly maintenance cost. However, this fee may be avoided if you have auto savings or a minimum daily balance of $300.
The monthly fee may start to deplete your savings account if you are unable to readily meet these waiver requirements.
CDs | Savings | |
|---|---|---|
APY | 1.00% – 5.00% | 0.01% – 4.00% |
Minimum Deposit | $250 |
$0 |
Fees | $0 | $5
Can be waived if you carry $300 minimum account balance or $25+ recurring transfer
|
About TD Bank
TD Bank is a Canadian multinational banking and financial services corporation headquartered in Toronto, Ontario. It is one of the largest banks in Canada and the United States, with operations in several other countries as well.
TD Bank offers a wide range of financial products and services, including personal and business banking, wealth management, insurance, and investment services. The bank has a strong presence on the East Coast of North America, with over 1,200 branches and over 2,600 ATMs in the United States and Canada.
If you want to know more about TD bank, you can take a look at our TD Bank review for 2024.
FAQs
Does TD Bank Offer No Penalty CD Rates?
TD Bank does not currently have a no-penalty CD, as of September 2024.
Do TD CDs come with a grace period?
During a grace period of ten (10) days that starts on each anniversary of the account opening date, withdrawals in full and in part are permitted without incurring fees.
How does the TD early withdrawal penalty work?
TD early withdrawal penalty depends on your CD term, the higher the term -the higher the penalty. The lowest penalty is 3 months of interest for CD up to 1 year, and 6-24 months of interest penalty for longer terms.
How We Rate Certificates of Deposits: Our Methodology
The Smart Investor team has thoroughly examined certificate of deposit (CD) offerings from various banks, considering multiple factors to provide a comprehensive evaluation. Here's how we rated them across four key categories:
-
CD Rates (50%): We meticulously analyzed the interest rates offered by each bank on their certificate of deposit (CD) products. Higher ratings were awarded to banks offering competitive rates that provide maximum returns for customers' investments. Factors such as the yield curve, current market conditions, and consistency of rates were considered to assess the attractiveness of each bank's CD rates.
-
CD Features (30%): This category evaluated the features associated with each bank's certificate of deposit offerings. Factors considered include the variety of terms available, early withdrawal penalties, minimum deposit requirements, and any additional features or benefits. Higher ratings were given to banks offering a diverse range of CD terms, reasonable early withdrawal fees, and flexible options to meet customers' investment needs.
-
Customer Experience (10%): A positive customer experience is paramount, even when investing in CDs. We assessed each bank's performance in this area, considering factors such as the ease of opening a CD account, the responsiveness of customer service, and overall user satisfaction. Higher ratings were assigned to banks with efficient account opening processes, helpful customer support, and a track record of satisfying customers.
-
Bank Reputation (10%): The reputation of a bank is a critical consideration when investing in CDs. We evaluated each bank's reputation based on factors such as financial stability, regulatory compliance, and public perception. Higher ratings were given to banks with a solid reputation for reliability and trustworthiness, ensuring customers' investments are safe and secure.
By considering these categories and assigning appropriate weights to each, our review aims to provide valuable insights to help individuals make informed decisions when investing in certificate of deposits.
