TD Bank Review

As one of the largest banks in the United States, TD Bank has roughly 1,250 locations and employs more than 27,000 people. It is a subsidiary of the Toronto-Dominion Bank, which purchased a majority share in the bank in 2004. However, the origins of TD Bank go back much earlier — all the way to 1852, when it was known as Portland Savings Bank. The TD Bank of today has gone through many changes since then. It has been known as Peoples Heritage Bank, Banknorth, Commerce Bank and TD Banknorth.

Today, TD Bank is headquartered in Cherry Hill, New Jersey, and is a good fit for people who keep a large amount of money in their savings accounts. Its interest rates are above average for a traditional bank, but account holders need to have more cash on deposit to see higher APRs.

How TD Bank Stacks Up

Pros
  • High interest rates for checking and savings accounts
  • Variety of savings, checking, loans and investment options
  • Existing customers can take 0.25% off loan APRs if they have a TD Bank savings or checking account and set up automatic bill payments
Cons
  • Monthly maintenance fees on some accounts
  • Borrowers need a credit score of 650 to 680 to be eligible for unsecured loans
  • Loans cannot be used for educational expenses

 

What’s interesting about TD Bank

When it comes to TD Bank, you should know that they reward customers for maintaining higher checking and savings account balances with higher interest rates. TD Bank’s highest-earning, interest-bearing accounts bring in almost as much as an online bank while offering you the convenience of a traditional bank. The APR is much higher than most traditional banks, but only if you have the required minimum on hand. TD Bank also offers different savings and checking accounts as well as investment options. This lets you have all of your accounts under one roof.

Things to consider

Monthly maintenance fees are standard, but these may be waived by meeting a minimum balance or having direct deposit. Still, it is a critical point to consider, especially if you may find your account balance falling under a certain amount from time to time. TD Bank also has lots of locations, but they are all east of the Mississippi. That may be fine if you live on the East Coast or in the Central time zone, but people who live in Mountain or Pacific time zones will not have easy access to a branch. You should also know that TD Bank offers higher than average interest rates, but only if you meet specific minimum deposit amounts. Otherwise, you will receive a lower rate than many other traditional banks would offer.

Checking and Savings Accounts

TD Bank offers five checking account types. TD Beyond Checking offers no ATM fees and overdraft payback, plus it earns interest. The more money you have in your account, the more interest you collect. However, there is a monthly maintenance fee. TD Convenience Checking has no maintenance fee as long as your balance doesn’t dip below $100, and it offers certain student perks for young adults. TD Bank also offers TD Simple Checking, Student Checking, and TD 60 Plus Checking.

TD Bank’s primary savings account type is called TD Simple Savings. It offers a higher interest rate than most traditional banks. People with higher savings account balances can earn almost as much as online banks with a TD Preferred Savings account. However, you will need $20,000 on deposit to see a rate bump and at least $250,000 to get the highest interest rate possible.

Money Market Accounts

TD Bank offers a money market account called TD Growth Money Market. It is structured like a savings account, but you can write checks from the account as needed — up to six per month. The interest you earn is tiered based on how much you have saved. If you set up a recurring transfer, you could see an extra rate bump. There is a monthly maintenance fee, but that amount may be waived if you maintain a minimum account balance. The annual percentage yield, or APY, you can expect is on par with other traditional banks, but that’s only when your balance is under a certain point. If you have a higher balance, you could earn significantly more than you would with another bank.

CDs

TD Bank offers three types of certificates of deposit, or CDs: TD Choice Promotional CDs, TD No-Catch CDs and TD Step Rate CDs. TD Choice Promotional CDs offer the lowest APY among the CDs the bank offers, but that is only on smaller amounts. It also offers the most flexible period terms; the shortest is just three months. However, you cannot make withdrawals without penalty. If you need more flexibility, the TD No-Catch CD is a better choice for shorter-term investments — usually six months to one year. If you would like a CD that lasts three or five years, TD Step Rate CDs will give you the highest APY and allow you to take a penalty free withdrawal on the anniversary of your account.

Credit Cards

TD Bank has three credit card options available. The TD Business Solutions Credit Card is designed for businesses and entrepreneurs, while the TD Cash Credit Card is made for personal accounts. Both credit cards offer cash back. The percentage you receive is based on the category of the purchase. The APR is variable and on par with other banks. There are no annual fees or foreign transaction fees. For people who want higher rewards, TD Bank offers the TD First Class Visa Signature Credit Card, which allows you to earn miles on your purchases. However, there is an annual fee starting the second year.

Personal Loans

TD Bank offers four different loans. Borrowers need credit scores of 650 to 680 or higher; however, those with lower scores can apply for a secured loan. Loan terms are one to five years and 10 years for lines of credit. The four loans that TD Bank offers include:

  • Express loans are $2,000 to $25,000. Borrowers can receive their money within 48 hours.
  • Personal unsecured loans are $2,000 to $50,000. Income verification is a requirement.
  • Secured personal loans are $5,000 to $50,000. Borrowers rebuilding credit can apply for these loans.
  • Unsecured lines of credit are $20,000 to $50,000. Good to excellent credit is required.

Mortgage Loans

TD Bank offers mortgage loans mostly for residents on the East Coast because the 1,200 locations that TD Bank touts are concentrated in cities and states close to the coast. Borrowers need a minimum credit score of 620 while loan types include VA, USDA and FHA loans.

Benefits include the fact that borrowers can find assistance from housing authorities in their state, and with the Right Step Mortgage program from TD Bank, prospective homebuyers can put down 3% on a 30-year fixed-rate mortgage without private mortgage insurance.

Drawbacks include that borrowers need to fill out their applications in person as the loans are not offered online. Borrowers who don’t live in the 15 states where TD Bank has its locations may want to seek out alternative lenders.

Mortgage Refinancing

TD Bank offers mortgage refinancing to help homeowners pay their mortgage loan off sooner. Homeowners can refinance with loan types that include VA, VA cash-out, cash-out, conventional or FHA cash-out.

Borrowers should explore refinancing options in-depth to determine the best rates and refinance options that suit their financial needs and situation. With conventional loans, they can refinance to lock in lower interest rates over a longer term, meaning they’ll pay less on their loan. With cash-out loans, borrowers can use the money to cover the cost of education or pay for renovations.

Among the drawbacks are the fact that the FHA cash-out loans don’t include the FHS Streamline Refinance program. Additionally, VA cash-out loans don’t include the Interest Rate Reduction Refinance Loan. An FHA Streamline Refinance loan won’t give borrowers more than $500 in cash. The purpose of these loans is to lower monthly payments, not to give cash back. With FHA cash-out refinancing programs, however, borrowers can use their home’s equity and turn it into cash for renovations or repairs, or they can use the money for medical bills or tuition.

Home Equity Loans & HELOCs

With TD Bank’s home-equity loans, borrowers can take up to 89.9% of their home’s equity in a loan. Loans start at $25,000 and are similar to a traditional mortgage with money received in a lump sum and then repayment monthly. Loans range from five to 30 years, and closings are 30 to 45 days after approval.

Home-equity lines of credit with a variable rate have a low APR while a fixed rate is also available. The minimum credit line amount is $25,000 withdraw periods and repayment varying based on the term and loan amount.

Car Loans

TD Auto Finance is the car loan lending arm of TD Bank. They offer flexible loans for cars and trucks. Loans are also available for older vehicles that are less than seven years old. Borrowers can explore variable and fixed-rate loans, and they can use the money for private sales or purchases through a car dealership.

Loan repayment can be weekly, every two weeks or monthly. There’s no cap on how much borrowers can request, and interest rates are based on income and credit history. A drawback is that while prime rates are listed, service and administrative fees aren’t always clear.

The Final Word

TD Bank offers interest rates that are higher than average across the board, but only for accounts that meet a minimum balance. It is an excellent choice for people who have a large amount of checking or savings. TD Bank also offers a variety of account types, providing you with the ability to manage all of your account and investments in one place.