TD Bank's High-Yield Savings Options
TD Bank does not currently offer a dedicated high-yield savings account. The bank's standard savings products—including its basic savings account and money market accounts—earn interest rates that are substantially lower than what you can find at online banks or credit unions. As of now, TD Bank's savings rates typically fall between 0.01% and 0.35% annual percentage yield (APY), depending on the account type and your balance, which is well below the 4% to 5% APY that many online institutions offer on high-yield savings accounts.
If you bank with TD and want to earn more on your savings, you have two realistic paths: keep money in a TD account for convenience and accept the lower rate, or move savings to a separate high-yield account at another institution while maintaining your checking account at TD. Many people do both—using TD for everyday banking and bill pay, then moving money to a higher-rate account for money they plan to keep untouched.
Key Takeaways
- TD Bank's savings accounts earn between 0.01% and 0.35% APY, which is significantly lower than high-yield accounts offered by online banks.
- TD does not market or offer a product specifically branded as a high-yield savings account.
- You can open a high-yield savings account at another bank while keeping your TD checking account open for regular banking needs.
- Moving money between TD and an external high-yield account takes one to three business days via ACH transfer, so plan ahead if you need the funds quickly.
How TD's Savings Rates Compare to Other Banks
The gap between what TD pays and what online banks pay is substantial. An online bank offering 4.5% APY on a $10,000 balance will earn you roughly $450 per year, while the same $10,000 at TD earning 0.25% APY earns about $25 per year. Over five years, that difference compounds to hundreds of dollars in lost earnings.
This gap exists because TD operates physical branches nationwide, which costs money. Online banks have no branches, lower overhead, and pass those savings to customers through higher rates. If earning interest on your savings matters to you, the rate difference is real enough to justify opening an account elsewhere, even if it means managing two institutions.
TD's Money Market Accounts and Savings Alternatives
TD does offer money market accounts, which sometimes pay slightly higher rates than basic savings accounts, but the difference is usually minimal—often just 0.05% to 0.10% more. Money market accounts at TD may also come with check-writing privileges and a debit card, but these features do not offset the rate disadvantage compared to high-yield savings at online banks.
TD also offers certificates of deposit (CDs), which lock your money away for a set term—typically three months to five years—in exchange for a fixed rate. TD's CD rates are also low compared to other banks, so if you are considering a CD, shop around before committing. The tradeoff with any CD is that you cannot access your money without penalty, so only use this option for money you genuinely will not need during the term.
How to Move Money Between TD and a High-Yield Account
If you decide to open a high-yield savings account elsewhere, transferring money from TD is straightforward. Most online banks let you link your TD checking or savings account and initiate an ACH transfer directly from their website. You will need your TD account number and routing number, both visible on your checks or available through TD's online banking portal.
ACH transfers typically take one to three business days to complete. If you need the money faster, you can withdraw cash from a TD branch or ATM and deposit it at the new bank, though this is less convenient. Once the account is set up and linked, you can move money back and forth as needed—for example, moving a lump sum to the high-yield account monthly and keeping your regular spending money at TD.
Why TD Customers Stay Despite Lower Rates
Many TD customers keep their savings at TD even though rates are low, because convenience and trust matter. If you use TD for checking, bill pay, and have a local branch nearby, keeping savings in the same place means one login, one statement, and one place to manage your money. The psychological ease of that simplicity is real, even if it costs you money over time.
TD also offers overdraft protection, which can link a savings account to your checking account to cover overdrafts automatically. If you use this feature, keeping savings at TD makes it work smoothly. However, if you do not use overdraft protection or do not overdraft often, this benefit does not apply to you.
Online Banks and Credit Unions Offering High-Yield Savings
If you want to earn a competitive rate, online banks like Marcus, Ally, American Express Personal Savings, and Wealthfront all offer high-yield savings accounts with rates currently in the 4% to 5% range. Credit unions, if you are a member of one, sometimes offer rates competitive with online banks, though this varies widely by institution.
Opening an account at an online bank takes about 10 minutes and requires an initial deposit, which you can transfer from TD. You do not need to close your TD account or stop using it for everyday banking. Many people maintain both—a TD account for checking and local branch access, and a high-yield account elsewhere for savings they want to grow.
Frequently Asked Questions
Can I earn interest on my TD checking account?
TD checking accounts earn little to no interest. If you want to earn interest on money you keep at TD, you must open a savings account, money market account, or CD. For meaningful interest earnings, a high-yield savings account at another bank is a better choice.
Does TD charge a fee to transfer money to another bank?
No. TD does not charge outgoing ACH transfer fees. The receiving bank also typically does not charge to receive an ACH transfer. Some online banks reimburse wire transfer fees if you use a wire instead of ACH, but ACH is free and takes one to three business days.
What happens to my FDIC insurance if I split savings between TD and another bank?
Each bank's FDIC insurance is separate. You are insured up to $250,000 at TD and up to $250,000 at the other bank, as long as the accounts are in your name alone. If you have more than $250,000 in savings, splitting it across banks actually protects you better than keeping it all in one place.
Can I use TD's app to check my high-yield account at another bank?
No. TD's app only shows TD accounts. You will need to log into the other bank's app or website to check that account. Many people set up alerts at both institutions so they know when transfers complete or when interest posts.
Is it worth opening a separate account just for the higher interest rate?
It depends on how much you have saved. If you have $5,000 or less, the difference is small enough that convenience might win. If you have $20,000 or more, the extra earnings over a year or two will pay for the minor inconvenience of managing two accounts. Calculate your own number: multiply your balance by the rate difference, and decide if that annual amount is worth the extra step.