Many people know TD Bank as a regional bank with most of its locations in the eastern half of the United States. Its popular TD Bank checking account bonus made our list of the best bank bonuses. However, TD Bank also offers a large selection of CDs. 

We examined the different TD Bank CD rates and found several unappealing options but a few reasonable TD Bank promotional CD rates.

Keep reading as we break down all the TD Bank CD Rates, discuss some of the features and provide some alternatives you could consider instead.

Also Read: Best CD Rates

TD Bank CD Rates

TD Bank CD rates range up to 3.75% APY, and you can choose a CD term of three months to 5 years.

TD Bank Promotional CD Rates

Below are the annual percentage yields (APY) for TD Bank Promotional CDs in Boston, Massachusetts. The annual percentage yield (APY) can fluctuate depending on where you live.

TD Bank No-Catch CD Rates

Below are the annual percentage yields (APY) for TD Bank No-Catch CDs.

TD Bank Step Rate CD Rates

Below are the annual percentage yields (APY) for a 3-year TD Bank Step Rate CD.

Below are the annual percentage yields (APY) for a 5-year TD Bank Step Rate CD.

TD Bank CD Features

Here’s a breakdown of features you’ll receive with TD Bank CDs.

Competitive Rates: TD Choice Promotional CDs offer some competitive rates, including 3.75% APY on their 9-month CD.

Low Minimum Deposit: You can open a CD from TD Bank with as little as $250.

Variety of CD Accounts: TD Bank offers several types of CDs, including TD promotional Choice CDs and specialty CDs like the No-Catch and Step Rate CDs.

Daily Compounding Interest: Interest is compounded daily and paid out monthly.

Relationship Rate Bump: You’ll earn a relationship rate bump if you have a TD Bank checking account.

FDIC Insured: TD Bank CDs are protected by the FDIC, up to $250,000.

TD Bank CD Pros and Cons

Pros of TD Bank CDs

• Low Minimum Deposit: The minimum initial deposit for opening a TD Bank CD is $250.
• Flexible CD Offerings: There are several CD options to choose from, including promotional and specialty CDs.
• Variety of Terms: Choose between terms of three months to five years.
• Daily Compounding Interest: Interest compounds daily, which means your earnings will be able to accumulate faster.
• In-person and online banking: You can do your banking in person or online.

Cons of TD Bank CDs

• Lower Interest Rates: While they do offer a 3.75% APY on the 9-month CD, many of its specialty CD rates are very low.
• High Early Withdrawal Penalty: If you withdraw money before the CD maturity date, the early withdrawal penalty is higher than that of many other banks.

How Do TD Bank CD Rates Stack Up?

Do you want to compare the current TD Bank CD rates to what else is available? Here are a few other options to consider. Plus, make sure you also check out the TD Bank bonus offers, including the TD Beyond checking account bonus.

Types of TD Bank CDs

Some banks only offer a single type of CD. TD Bank offers three different CD options.

Promotional CDs: Their most extensive offering of CDs is with the TD Promotional Choice CDs. With these, you can earn either the standard rate or the relationship rate. You can earn the relationship rate when you also have a TD Bank checking account.

TD Bank No Catch CDs: TD Bank’s No Catch CDs are no-penalty CDs that allow one penalty-free withdrawal. They are offered in six- and 12-month CD terms and have extremely low interest rates.

TD Bank Step Rate CD: You can choose three or five-year terms with a TD Bank Step Rate CD. The interest rate will increase yearly, and you can make one penalty-free withdrawal.

What is TD Bank CD Minimum Opening Deposit?

Some banks like Capital One and Barclays allow you to open a CD with no minimum deposit. However, there are a lot of banks that require $1,000 or more. TD Bank requires at least $250 before you can open an account, no matter what type of CD you use.

TD Bank CD Alternatives

Before choosing to open a TD Bank CD, you should also consider some of the alternatives.

High-Interest Checking Accounts: One of the most significant downsides of using a CD is that your money is tied up for the entire CD term. If you want to withdraw money before maturity, you’ll likely need to pay an early withdrawal penalty. If you prefer access to your funds but still want to earn a nice interest rate, you could choose from one of our best high-interest checking accounts.

High-Yield Savings Accounts: You could also use a high-yield savings account because several offer higher interest rates than you’ll get with a TD Bank CD.

Money Market Accounts: Money market accounts are very similar to savings accounts, except most will give you a debit card, and you’ll be able to write checks. Because they offer attractive interest rates, they can be a great alternative to CDs.

What are TD Bank CD Early Withdrawal Penalties?

Unless you have one of TD Bank’s specialty CDs that will give you one penalty-free withdrawal, you will incur early withdrawal penalties if you try to withdraw money from your CD before its maturity date.

The penalty will depend on your CD term.

The Bottom Line

TD Bank pays an attractive 3.75% APY on its 9-month CD. However, many of their other CD terms fall short of what you can get from different banks. However, if you prefer to do your banking at a reputable bank like TD Bank and want to be able to bank in person, their CDs could be worth considering.

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