TD Bank CD rates review
Open a CD for as little as $250 — but watch out for middling APYs.
finder.com’s rating: 1.8 / 5.0
TD Bank offers multiple CDs with low minimum deposits of $250. But watch out for low APYs that sink further unless you have a TD checking account.
|Early withdrawal penalty||90 days interest for terms of 3 to 12 months |
180 days interest for terms of 13 to 24 months
270 days interest for terms of 25 to 36 months
360 days interest for terms of 37 to 48 months
|Minimum deposit to open||$250|
Kevin Joey Chen was a credit cards, banking and investments writer for Finder. His work and analysis have appeared on CNN, U.S. News & World Report, Business.com, Lifehacker and CreditCards.com.
TD Bank offers low minimum deposits and a variety of CDs. However, TD’s APYs are considerably low compared to the competition, currently resting at 0.05% no matter the length and how much money you invest into the CD. In comparison, 1-year CDs for a variety of competitors range in the 1% to 2% range – a marked difference.
The minimum deposit to open a CD is somewhat low, but not among the lowest on the market. And while you can receive a bump rate CD if you also have or open a TD checking account, even a modest increase in APY means TD Bank CDs are simply playing catch up to the competition.
If you’re looking for a solid CD to grow your investments, there are stronger options available on the market.
How do I open a TD Bank CD?
- Go to the provider’s site and follow the steps to apply.
- From the TD Bank website, choose the CD term you want and click Open account.
- Select your country of residence. TD Bank will redirect you to the application form for your country.
- Complete the application with your personal details.
- Fund your CD.
To open a CD with TD Bank, check that you meet the following requirements:
- At least 18 years old
- US citizen or permanent resident
- Social Security number
- US mailing address
Have the following information ready when completing your application:
- Government-issued ID
- Social Security number and date of birth
- Contact information such as your street address, email and phone number
- Account numbers for your funding source
You can fund your CD in three ways:
- Cash, which you can deposit at a branch
- Electronic transfer
4 benefits of a TD Bank CD
You have the option of opening up a TD Bank CD at a branch or online. Other advantages include:
- Bump rates for TD checking account holders. Receive a bump rate APY if you also have a TD checking account. This bump rate APY is the same as a standard APY, though you can request a one time rate bump should the APY increase.
- Low minimum deposit. Open a CD for as low as $250.
- Withdraw interest. You can withdraw interest you’ve earned before your CD’s maturity. But you’ll incur a penalty fee and may reduce your overall earnings.
- Variety of CDs. Besides TD Choice CDs, you’ll find TD Step Rate, No-Catch and IRA Add-Vantage CDs.
Other types of CDs from TD Bank
- TD Step Rate CDs. Get guaranteed rate increases every year. You’ll also get a 10-day grace period every year on your account-opening anniversary date, during which you can withdraw funds from your principal without penalty.
- TD No-Catch CDs. You can withdraw funds from your principal once every term without penalty after seven days of account opening.
- TD IRA Add-Vantage CDs. Open a 12-month CD with a 0.05% APY. Make deposits of $500 or more during the CD term.
4 potential drawbacks
Like other banks, TD Bank will renew your CD 10 days after the maturity date unless you withdraw your funds. Here are a few other things to watch out for:
- Promotional rates expire. After your CD matures, you won’t receive the promotional rates from having a TD Bank checking account.
- You’ll find better rates elsewhere. The bank offers middling rates on all three of its CD terms. It’s especially outclassed in 1-year CDs, where you can often find APYs above 2% elsewhere.
- No withdrawals prior to maturity. The exception is if you obtain TD Bank’s consent. Even then, you’ll pay a penalty for your withdrawal.
- Interest compounded monthly. This means your funds will grow slightly slower than if interest were compounded daily.
Use our interest calculator to see how much you could earn on your CD.
Compare with other CDs
If a TD Bank CD isn’t right for you, consider CDs from other banks.
TD Bank CDs reviews and complaints
There are few reviews of TD Bank CDs available on social media. TD Bank has been accredited with the Better Business Bureau since 2002 and currently sports an A- rating from the organization. The bank has a 1.3 out of 5 rating on Trustpilot, with several customer reviews complaining of the bank’s poor customer service.
How do I cash out a TD Bank CD?
After your CD matures, you’ll have a 10-day grace period during which you can decide what to do with your funds. Here are your options:
- Withdraw your funds.
- Deposit additional funds.
- Take no action, after which your CD will renew after the grace period.
What’s the penalty for withdrawing my CD funds early?
The penalty depends on how many days you’ve held your CD:
|7 to 89 days||All interest|
|90 days to 1 year||3 months’ interest|
|1 year to 2 years||6 months’ interest|
|2 to 3 years||9 months’ interest|
|3 to 4 years||12 months’ interest|
|4 to 5 years||18 months’ interest|
|5 years or more||24 months’ interest|
★★★★★ — Excellent
★★★★★ — Good
★★★★★ — Average
★★★★★ — Subpar
★★★★★ — Poor
We rate CDs and share certificates on a scale ranging from one to five stars based on what matters most to you. We consider two factors equally when rating CDs: minimum deposits and annual percentage yields (APYs) relative to term length. If a bank requires a different minimum opening deposit depending on the chosen term, we rate the CD based on the average minimum deposit across all terms. And although some institutions offer CDs with terms ranging from one week to 20 years, we only consider term lengths the FDIC uses in its monthly updates on national rates.
Read the full methodology of how we rate CDs.