TD Bank Saving Account: TD Bank offers savings accounts that will give you more interest if you add another account and hold a bigger balance. They are known for offering good customer service and solid digital banking tools.
TD Bank is one of the 10 largest banks in the U.S. and has more than 1,300 locations throughout the Northeast, Mid-Atlantic, Metro D.C., the Carolinas and Florida so if you live in one of those areas, you’ve got ready access to your cash when you need it.
This savings account comes with features like:
Free automatic transfers between accounts
IRA savings account option
No minimum deposit required to open
Zero ATM fees when you use TD Bank ATMs in the U.S. and Canada
If you’re in need of a new home for your savings, the TD Simple Savings Account is one option.
TD Bank Simple Savings Account Pros & Cons
Free ATM card
Can be used for overdraft protection
Access to physical branches
Mobile apps available
Interest rate is much lower compared to online savings accounts
TD Bank Simple Savings Account Fees
Monthly Maintenance Fee
Excess pre-authorized withdrawals, transfers or checks
Statements with check copies &/or deposit slips only
Your efforts to save can backfire if you’re paying the bank big bucks in fees each month. The TD Simple Savings Account does have a monthly maintenance fee of $5 but there are a few ways to avoid it.
Automatic Savings Transfers
First, you can get the fee waived in the first year by setting up automatic transfers to your savings. To qualify for a fee waiver, you have to have a linked, eligible TD Bank checking account and a recurring transfer of $25 or more from a TD Bank account each month.
Maintaining a Minimum Daily Balance
TD Bank also waives the fee if you meet the minimum daily balance requirement. The minimum daily balance required to get out of paying the fee is $300. There’s no minimum required to open an account but if you can do it with at least $300, you can get around paying the monthly maintenance fee.
Be a Student or Senior
The fee can be waived if you link a TD Student Checking account to your Simple Savings account.
That’s good news for students who are trying to build up their savings while they’re still in school. The fee waiver also applies to savers who are 18 or younger, or 62 and older.
Choose Online Statements
If you sign up for online statements, you can knock the fee down to $4 a month. In terms of how the fee compares to other banks, it depends on who you bank with. Ally, for example, doesn’t charge a monthly maintenance fee at all.
Bank of America and Chase, on the other hand, both charge a $5 monthly maintenance fee for a basic savings account. Both banks give you a chance to avoid the fee, either by setting up recurring transfers or maintaining a set minimum balance.
For premium savings accounts, the monthly fee goes up to $12 and $20, respectively. Compared to other brick-and-mortar banks, TD Bank’s Simple Savings Account fee isn’t outrageous.
You’ve also got lots of ways to avoid it. If you’d rather not worry about fees or minimum balances at all, however, an online savings account may be the better choice.
There are a couple of other points worth mentioning about the TD Simple Savings Account. For one thing, you can use automatic transfers to add to your savings. That’s helpful if you’re struggling to get into the savings habit.
TD Bank offers a money market account; however, it generally pays a lower rate than its savings accounts. The bank also offers CDs with mostly uninspiring rates.
Next, this account isn’t just for grown-ups. Kids under 18 can also get a TD Simple Savings Account to start working towards their savings goals. If you’ve got kids, getting them their own savings account can be a good way to teach them about managing money.
Finally, if you’ve got a TD Bank checking account, you can link it to your savings as a form of overdraft protection. If you accidentally put your checking account in the red, TD Bank will transfer money over from your savings to cover it.
There’s a $10 fee for each daily transfer but that’s cheaper than paying $35 per transaction for overdraft fees.
Alternative Online Savings Accounts
The TD Simple Savings Account has to contend with online savings accounts that provide higher interest rates without monthly fees:
Ally Bank Online Savings
Ally Bank’s online savings account doesn’t charge any monthly fees and it offers an interest rate that is significantly higher than the APY on the TD Simple Savings Account. You can also open multiple accounts with different nicknames for different savings goals.
Synchrony Bank High Yield Savings
The Synchrony Bank High Yield Savings account has no monthly, an attractive APY, and an optional ATM card for those times when you need cash immediately for an emergency.
Goldman Sachs Bank USA Online Savings
Goldman Sachs Bank USA’s online savings account is a no-frills savings account that just focuses on delivering a high-interest rate on your deposits.
The TD Simple Savings Account has some positives. You don’t need a ton of cash to open one; in fact, you don’t need any money at all to get started. While there is a monthly maintenance fee, dodging it may not be that difficult if you can maintain the $300 minimum daily balance.
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