By 2022, the U.S. Federal Reserve predicts that inflation will be at 2%. That means you can expect a return on your investment of 1% in this time period based on current interest rates and account balances. This article compares expected changes to TD Bank’s CD rates over the next few years and how those compare with other banks’, as well as gives an estimate for what rate could be possible after inflation is accounted for by 2023-2025
TD Bank CD Rates is a comparison of the interest rates for savings accounts from TD Bank and other banks. The goal of this website is to help consumers make an educated decision on which bank offers the best interest rates. Read more in detail here: td bank savings interest rate.
td.com is the source of this photograph.[Update June 2022: TD Bank has yet to boost the returns on its CDs, despite the FED’s rate rise on May 4th and their vow to continue raising rates for the remainder of the year. For more over two years, their CD rates have remained unchanged. This might change shortly, when the Federal Reserve announces its quantitative tightening strategy, which includes a series of hefty rate rises this month and next.]
TD Bank, while operating mostly on the east coast, is the country’s eighth biggest bank by assets. They are based in Cherry Hill, New Jersey, and operate over 1,200 stores in 15 US states and Washington, D.C.
TD Bank provides three distinct kinds of certificates of deposit to customers searching for fixed-rate deposit products. They are as follows:
- Promotional CDs from TD
- CDs with no catch from TD
- CDs with a TD Step Rate
The Federal Deposit Insurance Corporation (FDIC) insures all TD Bank deposits up to $250,000 per depositor. In this assessment, we will break down the APYs, terms, conditions, and information of all of TD Bank’s CDs.
You will be asked to identify your location while seeing TD Bank’s CD rates on their website.
After you’ve input your location, you’ll be able to examine their current rates and navigate through their CD account choices. However, we tested this situation in three different sites and found that the yearly percentage yields were same in each. The following are some of the places we visited:
- Boca Raton is a city in the state of Florida.
- Washington, D.C. is the capital of the United States.
- Boston is a city in Massachusetts.
This article will teach you how to:
Currently, the top APY on these accounts is about 0.10 percent.
Like all of TD Bank CDs, the Promotional CDs from TD feature a tiered interest rate and APY based on your Amount of the Deposit. 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.
The terms vary from three months to five years, with a $250 minimum deposit.
CD Rates on Promotion
|CD Term||Amount of the Deposit||Standard Annual Percentage Yield||APY of a relationship|
|3 month||From $250 to $9,999.99||0.05%||0.05%|
|3 month||$10,000 +||0.05%||0.05%|
|6 month||From $250 to $9,999.99||0.05%||0.05%|
|6 month||$10,000 +||0.05%||0.05%|
|9 month||From $250 to $9,999.99||0.05%||0.05%|
|9 month||$10,000 +||0.05%||0.05%|
|12 month||From $250 to $9,999.99||0.05%||0.05%|
|12 month||$10,000 +||0.05%||0.05%|
|18 month||From $250 to $9,999.99||0.05%||0.05%|
|18 month||$10,000 +||0.05%||0.05%|
|2 years||From $250 to $9,999.99||0.05%||0.05%|
|2 years||$10,000 +||0.05%||0.05%|
|3 years||From $250 to $9,999.99||0.05%||0.05%|
|3 years||$10,000 +||0.05%||0.05%|
|5 years||From $250 to $9,999.99||0.05%||0.05%|
|5 years||$10,000 +||0.05%||0.05%|
According to recent FDIC statistics, the national average yield on a 12-month CD is 0.21 percent, while the average return on a 5-year CD is 0.39 percent.
While TD Bank refers to these deposit products as “promotional,” the actual rates are far from it. If you do decide to establish one, keep in mind that your funds will be locked up for the period of the deposit. If you require access to your money before it matures, you’ll have to pay an early withdrawal penalty. If you think you’ll need the money before it matures, consider opening a “TD No-Catch CD,” which allows you one penalty-free withdrawal each term.
Penalties for Early Withdrawal
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 Penalties for Early Withdrawal.
- TD Bank will remove all accumulated interest on CDs with periods of 7 to 89 days.
- TD will remove three months’ interest on CDs with periods of 90 days to one year.
- TD will withhold six months’ interest on CDs with periods of one to two years.
- TD will withhold nine months’ interest on CDs with periods of two to three years.
- TD will remove twelve months’ interest on CDs with periods of three to four years.
- TD will remove eighteen months’ interest on CDs with periods of four to five years.
The compounding schedule for TD Bank is not stated on their website, but according to their CD rate calculator, interest seems to be compounded weekly. Many banks, both online and offline, compound interest on a daily basis, giving you a greater yearly percentage rate.
There is a grace period.
As with most banks and credit unions, TD Bank has a 10 day There is a 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 There is a grace period., your funds will roll into another CD of the same term and current APY.
The highest APYs on these accounts are about 0.05 percent.
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 Amount of the Deposit, they all feature the same lackluster yield currently.
The main distinction is that these accounts allow for just one penalty-free withdrawal each term.
CD Rates with No Catch
The required minimum deposit is $250.
Interest is compounded presumably monthly on these CDs as well and the same There is a grace period. applies. All of these CDs will automatically renew if nothing is done during the There is a grace period..
The highest APY available on these accounts is 0.25 percent.
Step Rate CDs from TD Bank work just as their name suggests, with your interest rate increasing each year on your anniversary. With these items, you only have two options: a three-year term or a five-year term.
The Step Rate CD has a similar function to the “No-Catch CD” as an extra benefit. Each year on the anniversary of your CD, you will be offered a 10-day opportunity to add or withdraw money without penalty. You may withdraw any amount, whether it’s all of your money or only a portion of it, at this moment.
Rates in 3 Year Steps
The APY Composite is simply the blended APY you will have received at the maturity of your deposit term.
Rates in 5 Year Steps
While the 5 year TD Step Rate CD has the greatest yield of any TD Bank CD, it still falls short of the national average, and other banks and credit unions offer far better 5 year CD rates.
TD Bank CD Rates – See how they compare in 2022 is a blog post that compares the interest rates of savings accounts from TD Bank to other banks. Reference: td bank savings account.
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