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If you live on the East Coast, TD Bank (Member FDIC) is a regional brick-and-mortar option. For CDs, specifically, it has a greater variety than most banks. You can open standard CDs, step-up CDs, and no-penalty CDs.
TD Bank CD rates vary significantly between different accounts and term lengths. You'll also get a much higher rate on regular CDs if you are an eligible TD Bank checking account customer.
TD Bank CD Rates Today
TD Bank CD rates are the same in many areas, but they can vary by location. Here are the TD Bank Choice Promotional CD rates for New York City, New York:
| Choice Promotional CD Term | Standard APY | Relationship Bump APY |
| 3 months | 1.00% | 3.00% |
| 6 months | 1.00% | 5.00% |
| 9 months | 1.00% | 4.00% |
| 12 months | 1.00% | 4.50% |
| 18 months | 1.00% | 4.00% |
| 24 months | 1.00% | 4.00% |
| 3 years | 1.00% | 3.51% |
| 5 years | 1.00% | 2.50% |
TD Bank Choice Promotional CD Rates
A TD Bank Choice Promotional CD is the most appealing to existing TD Bank personal checking account customers because you'll benefit from a relationship bump rate. If you only qualify for the standard rate, you'll likely find better options at other banks. Choice Promotional CDs offer a standard rate that's lower than average CD rates — regardless of which term you get.
TD Bank No-Catch CD Rates
Here are the rates for TD Bank No-Catch CD:
| No-Catch CD Term | Standard APY |
| 6 months | 0.05% |
| 12 months | 0.05% |
TD Bank two option no-penalty CDs, which is more variety than you'd find at most banks. But the CD rates are pretty low.
The best no-penalty CDs can be found at online banks. Some financial institutions only offer one term length, while others have even more term lengths than TD Bank.
TD Bank Step Rate CD Rates
Here are the 3-year rates for TD Bank Step Rate CD:
| 3-Year Step Rate CD | Interest Rate |
| Year 1 | 0.05% |
| Year 2 | 0.10% |
| Year 3 | 0.15% |
| Composite APY | 0.10% |
Here are the 5-year rates:
| 5-Year Step Rate CD | Interest Rate |
| Year 1 | 0.05% |
| Year 2 | 0.10% |
| Year 3 | 0.15% |
| Year 4 | 0.20% |
| Year 5 | 0.25% |
| Composite APY | 0.15% |
The rates for step-up CDs are relatively low, and you'll earn more with a 3-year or 5-year Choice Promotional CD term, even if you only qualify for the standard rate.
TD Bank CD Pros and Cons
TD Bank CD Pros
- Variety of CDs to choose from
- High rates on 6-month and 12-month Choice Promotional CD terms
- Low $250 minimum deposit
TD Bank CD Cons
- Low rates on most CD terms
- Interest compounds monthly, not daily
- High early withdrawal penalties
TD Bank CDs: Find the Right Fit for Your Savings
Types of CDs Offered by TD Bank
TD Bank has three types of CDs: the TD Bank Choice Promotional CD, TD Bank No-Catch CD, and TD Bank Step Rate CD.
TD Bank's most common type of CD is the TD Bank Choice Promotional CD. Choice Promotional CDs have two interest rates: the standard rate and the relationship bump rate. You're eligible for the bump rate if you have a personal TD Bank checking account in good standing when you open or renew your CD. The bump rate is notably higher for most terms.
TD Bank No-Catch CD are no-penalty CDs that allow one penalty-free withdrawal per term. The bank offers 6-month and 1-year terms.
TD Bank Step Rate CD increase your rate every year, and allow one penalty-free withdrawal at each year mark. You can choose from a 3-year or 5-year term.
Regional Branch Presence
TD Bank has over 1,100 locations, primarily on the East Coast. You'll find branches in the following states: Connecticut, Delaware, Florida, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia, and Washington, DC.
If you like going to a branch to handle banking transactions, a brick-and-mortar bank will likely be more suitable than an online bank. Brick-and-mortar banks also make it easier to deposit cash. Some online banks don't let you make any cash deposits. Others may permit cash deposits, but you are limited to cash-accepting ATMs or retailers that charge fees.
Minimum Opening Deposit
You can open any TD Bank CD with $250 or more. At least $1,000 is usually required to open a CD at a bank, so TD Bank has more lenient opening requirements than most financial institutions. Only a handful of banks let you open a CD with less money upfront, so you can rest assured that TD Bank is a great choice if you prioritize a low opening deposit requirement for a CD.
Early Withdrawal Penalties
TD Bank has the following early withdrawal penalties:
- All interest interest earned for CD terms from 7 to 89 days
- 3 months of interest for terms between 90 days and less than 1 year
- 6 months of interest for terms between 1 year and under 2 years
- 9 months of interest for terms between 2 years and under 3 years
- 12 months of interest for terms between 3 years and under 4 years
- 18 months of interest for terms between 4 years and under 5 years
- 24 months of interest for terms above 5 years
Compared to other banks, these early withdrawal penalties are high for all CD terms. To avoid early withdrawal penalties, wait until CD maturity. You could also open a no-penalty CD if you're worried about early withdrawals. No-penalty CDs permit a free withdrawal, so you won't have to pay these fees.
Factors Affecting TD Bank CD Interest
Analyzing historical CD rates can help you understand when bank CD rates are competitive. Bear in mind that the Federal Reserve's actions can largely affect CD rate trends, but you also have some control over how much interest you can earn on a CD.
Economic Conditions and Fed Actions
The Fed will adjust the federal funds rate to slow down or stir economic growth. For example, the Fed may raise the federal funds rate to combat rising inflation or lower the rate to encourage borrowing.
Changes in the federal funds rate impact bank CD rates. The account's rates usually rise when the federal funds rate goes up and drops when the federal funds rate goes down.
Something to note about the current economic environment is that short-term CD rates are higher than long-term CD rates. This is because banks expect the Fed to cut rates in the future but still want to have competitive rates available.
CD Term Length and Opening Deposit
One way to see if a CD is right for you is by using a CD calculator to figure out your potential interest earnings. That may help you visualize whether a CD fits with your financial goals.
Keep in mind that your opening deposit and term length can make a difference in your earnings. You also want to avoid making an early withdrawal, because the penalty is usually some of the interest you've earned on the account.
Should You Invest in a TD Bank CD?
TD Bank CDs are a decent choice if you want to use a brick-and-mortar bank. It pays high relationship bump rates on 6-month and 12-month Choice Promotional CDs. However, other banks have higher rates available if you aren't a TD Bank checking account customer or are interested in different terms. The best online banks and credit unions also offer stronger specialty CDs.
TD Bank CD Alternatives
TD Bank CDs vs. Chase Bank CDs
As with TD Bank, Chase CD rates can vary by location. And like TD Bank, its only competitive rates are relationship rates, and only on certain terms. Your choice between the two could come down to which term you want to open — for example, you'd earn a higher relationship rate on a 9-month CD with Chase, but the 6-month relationship rate is better with TD Bank.
Chase is a good option if you want to open a longer-term CD because it has terms of up to 10 years. But it doesn't have any no-penalty CDs or step-up CDs, like TD Bank does.
Chase Bank Review
TD Bank CDs vs. Bank of America CDs
Bank of America CD rates depend on where you live, and it only pays high rates on certain terms. Like TD Bank, it has three types of CDs. The best fit could come down to which type of CD or term length you want.
The Bank of America Fixed Term CD pays low rates overall, but in certain markets, it pays good rates on 3-month, 4-month, and 5-month terms. It has terms up to 10 years.
The Bank of America Featured CD works similarly to the Fixed Term CD, except it only has a few terms. The 7-month and 13-month terms pay the highest rates.
The Bank of America Flexible CD is a 12-month no-penalty CD that pays 4.25% APY. So if you want the best no-penalty CD rate, Bank of America is definitely a better choice than TD Bank.
Bank of America Review
Why You Should Trust Us: How We Reviewed TD Bank CDs
To review TD Bank CDs, we used Business Insider's certificate of deposit methodology.
We look at interest rates, minimum opening deposits, CD term variety, early withdrawal penalties, ethics, customer support, and the mobile app. We assign each category a rating between 0 and 5, then average the scores together to calculate the CDs' overall ratings.
We did not factor in early withdrawal penalties when rating the No-Catch CD, since it's a no-penalty CD.
TD Bank CD FAQs
Are TD Bank CD rates competitive?
TD Bank CD standard rates aren't competitive and pay less than average CDs. TD Bank bump rates are higher than average CD rates, with the most competitive offerings being the 6-month and 1-year terms.
Does TD Bank change their CD rates often?
TD Bank can change CD rates whenever it wants. CD rates are usually influenced by the Fed's actions, though. Hence, TD Bank may offer more competitive CD rates when the Fed raises rates and lower CD rates if the Fed cuts rates.
Do TD Bank CDs offer any unique features?
Overall, TD Bank has unique minimum opening deposit requirements for CDs. You'll only need $250 to open a TD Bank CD, which is less money upfront than other banks require for CDs. TD Bank also has two specialty CDs that aren't always common options at banks — no-penalty CDs and step-up CDs.
Are TD Bank CDs safe?
Yes, CDs are a safe investment option because they are bank accounts at federally insured financial institutions. TD Bank CDs are covered by FDIC insurance, up to $250,000 per account holder, per account ownership category.
Do I need a TD Bank checking account to open a CD?
No, you do not necessarily need a TD Bank checking account to open a TD Bank CD. New customers can apply for TD Bank CDs online or at branches. Eligible TD Bank checking account customers qualify for a bump relationship rate, though, which can make a difference for some terms more than others.
Banking Editor
Sophia Acevedo is a banking editor at Business Insider. She has spent three years as a personal finance journalist and is an expert across numerous banking topics.ExperienceSophia leads Personal Finance Insider's banking coverage, including reviews, guides, reference articles, and news. She edits and updates articles about banks, checking and savings accounts, CD rates, and budgeting and saving. She is highly knowledgeable about long-term trends in rates and offers at banks across the U.S.Before joining Business Insider, Sophia worked as a journalist at her college newspaper and was a freelance writer. She has spent seven years writing and editing as a journalist.Sophia was nominated for an Axel Springer Award for Change in 2023 for her coverage of ABLE accounts, tax-free savings accounts for people with disabilities. She was also a winner of a 2018 California Journalism Awards Campus Contest for her photography.She loves helping people find the best solutions for their unique needs and hopes that more people will find the tools to solve their financial problems. She’s inspired by stories of everyday people adapting to their financial circ*mstances and overcoming their fears around money.ExpertiseSophia's expertise includes:
- Bank accounts
- Savings and CD rate trends
- Budgeting
- Saving
- How banks operate
EducationSophia graduated from California State University Fullerton with a degree in journalism and a minor in political science.She is an avid reader across a variety of genres, and she started running in 2021. She ran in the 2024 Los Angeles Marathon.
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