TD Savings Accounts Earn Interest on Money You Keep There

A TD savings account is a deposit account where you store money and earn interest on your balance. TD Bank (officially TD Bank, N.A.) pays you a percentage of what you hold, calculated daily but usually credited monthly. The rate changes based on market conditions and the account type you choose — TD offers several versions, each with different interest rates and minimum balance requirements.

You can deposit money by transferring it from another bank account, depositing a check at a TD branch or ATM, or making a direct deposit from your employer. Withdrawals work the same way: you can visit a branch, use an ATM, transfer money online to another account, or request a check. TD has no monthly fee on most savings accounts if you meet the minimum balance, which varies by account type.

Key Takeaways

  • TD savings accounts earn interest that is calculated daily and usually added to your account once a month.
  • You can deposit and withdraw money through TD branches, ATMs, online transfers, or direct deposit from your paycheck.
  • Most TD savings accounts have no monthly fee if you keep a minimum balance, typically $100 to $2,500 depending on the account.
  • Interest rates on TD savings accounts change regularly and are lower than rates on money market accounts or certificates of deposit.
  • You can open a TD savings account online, by phone, or at a branch, and you will need a government ID and Social Security number.

TD Savings Account Types and Their Interest Rates

TD offers three main savings account versions: the regular Savings Account, the Money Market Savings Account, and the TD Youth Savings Account. The regular account has the lowest interest rate but the lowest minimum balance requirement. The Money Market account pays higher interest but requires a larger opening deposit and minimum balance — typically $2,500 or more. The Youth account is for people under 18 and has different terms.

Interest rates on all three change based on the Federal Reserve's decisions and market conditions. TD publishes current rates on its website, but they are not locked in — the rate on your account can go down (or up) at any time. You will see the rate you are earning listed in your account statements and online banking dashboard.

How Interest Is Calculated and When You Receive It

TD calculates interest on your account balance every day using what is called the daily balance method. This means the bank looks at how much money you have at the end of each day, adds up all those daily balances for the month, and then applies the interest rate to that total. The interest earned is usually deposited into your account on the first business day of the next month.

The more money you keep in the account and the longer you keep it there, the more interest you earn. If you withdraw money mid-month, that withdrawal reduces your daily balance for the rest of the month, which lowers the interest you earn that month. Interest compounds monthly, meaning you earn interest on the interest you received the previous month.

Deposits: How to Get Money Into Your TD Savings Account

You can deposit money into a TD savings account in several ways. The most common are direct deposit from your employer (which you set up by giving your employer your TD account and routing number), transfers from another bank account using online banking, and in-person deposits at a TD branch or ATM. You can also deposit checks by photographing them through the TD mobile app or by mailing them to TD.

There is no limit on how much you can deposit or how often you can deposit. However, federal rules once limited savings account withdrawals to six per month — TD removed this limit in 2020, but some restrictions may still apply depending on the type of withdrawal. Check your account agreement or call TD customer service at 1-800-788-7000 to confirm current withdrawal limits.

Withdrawals: Getting Money Out of Your TD Savings Account

You can withdraw money from a TD savings account by visiting a branch in person, using a TD ATM, transferring money online to another account (at TD or another bank), or requesting a check. Withdrawals made at a TD branch or ATM are usually available immediately. Online transfers to another bank typically take one to three business days, depending on the receiving bank.

If you withdraw money and your balance falls below the minimum required for your account type, TD may charge a monthly fee (usually $5 to $15) until your balance goes back up. Some account types waive the fee if you maintain a certain average balance instead of a minimum balance at the end of each month, so read your account terms carefully.

Minimum Balance Requirements and Monthly Fees

TD's minimum balance requirements vary by account type. The regular Savings Account typically requires a $100 minimum balance to avoid a monthly fee. The Money Market Savings Account usually requires $2,500 or more. If your balance drops below the minimum at any point during the month, TD charges a fee — commonly $5 to $15 — which is deducted from your account.

Some TD accounts waive the fee if you maintain an average daily balance above a certain threshold instead of keeping the minimum at the end of the month. You can see your current balance and whether you are meeting the minimum requirement in your online banking account or by calling 1-800-788-7000. If you are close to falling below the minimum, you can deposit money before the fee is charged.

Opening and Managing a TD Savings Account

You can open a TD savings account online at tdbank.com, by phone at 1-800-788-7000, or in person at any TD branch. You will need a government-issued photo ID (driver's license, passport, or state ID), your Social Security number, and an initial deposit. The initial deposit amount depends on the account type but is often $25 to $100 for regular savings accounts.

Once your account is open, you can manage it through TD's website or mobile app. You can check your balance, view interest earned, set up automatic transfers, and change your contact information. If you have questions about your account or need to make changes, you can contact TD customer service at 1-800-788-7000 or visit a branch during business hours.

Frequently Asked Questions

Can I have multiple TD savings accounts?

Yes, you can open more than one TD savings account. Some people open separate accounts to save for different goals. Each account earns interest independently, and each must meet its own minimum balance requirement to avoid fees.

What happens if my balance goes below the minimum?

TD charges a monthly maintenance fee (usually $5 to $15) if your balance falls below the minimum. The fee is deducted from your account. You can avoid future fees by depositing enough money to bring your balance back above the minimum before the next fee is charged.

How often does TD change its savings account interest rate?

TD can change rates at any time without notice. Rates typically move when the Federal Reserve changes its benchmark rate, but TD may adjust independently. You can check your current rate on your monthly statement or in your online banking account.

Can I transfer money from my TD savings account to pay bills?

Yes, you can transfer money from your savings account to another account (at TD or elsewhere) to pay bills. You can set up bill pay through TD's online banking, or you can transfer money to your checking account and pay from there. Transfers to other banks usually take one to three business days.

What is the difference between a TD savings account and a money market account?

A TD Money Market account pays higher interest than a regular savings account but requires a larger minimum balance (usually $2,500 or more). Money market accounts may also come with a debit card or checkbook, though this varies. If you have a smaller balance, a regular savings account is usually the better choice.