TD Bank Simple Savings pays 0.01% APY and charges a $5/month fee waived with a $300 balance or linked checking. Like all major branch banks, TD’s savings rate is not competitive for growing money. The right use for TD savings is as a small buffer and overdraft protection account — move substantial savings to an online HYSA earning 4.20%+.
The strategy: TD Checking for branch convenience and extended hours. Online HYSA for savings growth. TD savings account with $300 to waive the fee.
TD Bank Savings Rate vs. Online Banks
| Account | APY | Annual Interest on $15,000 |
|---|---|---|
| TD Simple Savings | 0.01% | $1.50 |
| National average | 0.46% | $69 |
| Ally HYSA | 4.20% | $630 |
| Discover HYSA | 4.25% | $637.50 |
| Marcus HYSA | 4.25% | $637.50 |
TD Simple Savings: Features and Fees
APY: 0.01% Monthly fee: $5 Fee waiver: $300 minimum daily balance OR linked TD checking OR under age 18 Min to open: $0 FDIC insured: Yes
Standard features:
- Online and mobile access
- Mobile check deposit
- Automatic transfers from TD checking
- Overdraft protection source for TD checking ($10 fee per transfer occurrence)
TD Simple Savings earns almost nothing. Its value is as a structural account — maintaining $300 to waive the fee, and having savings available as an overdraft buffer for checking.
Using TD Savings as Overdraft Protection
When linked to TD Convenience Checking, TD Simple Savings serves as an automatic overdraft transfer account. If your checking account is overdrawn, TD transfers from savings to cover it — for a $10 transfer fee per occurrence.
$10 per overdraft transfer is cheaper than TD’s $35 overdraft fee. If you occasionally run short in checking, this protection is worth setting up — just maintain $300+ in savings to keep the fee waived.
What TD Savings Is Good For
- Maintaining $300+ to qualify for the savings fee waiver
- Providing overdraft protection backup for TD Convenience Checking
- Youth savings (fee waived under age 18)
- Short-term savings goal with a TD branded account (though rates are poor)
The Two-Bank Strategy for TD Customers
- TD Convenience Checking — primary day-to-day account; use TD’s 7-day branch hours and Zelle
- TD Simple Savings — maintain $300 (waives $5 fee); keep as overdraft buffer linked to checking
- Online HYSA (Ally/Discover/Marcus) — deposit all substantial savings here for 4.20%–4.25% APY
Transfer setup: Enter TD’s routing number and your checking account number into the HYSA’s “linked account” section. TD verifies the link via test deposits (1–3 business days). After that, transfers take 1–3 business days.
Annual benefit on $20,000: $840 (Ally 4.20%) vs. $2 (TD 0.01%) = $838 more per year for the 10 minutes it takes to open an HYSA.
TD Bank CDs: A Better Rate-Locked Option
TD Bank does offer competitive CD rates for customers who can lock money away for a specific term (3 months to 5 years). If you have savings you won’t need for a defined period, TD CDs may offer better rates than TD savings while keeping assets at the same institution.
However, CDs have early withdrawal penalties — they are not suitable for emergency funds or money you may need unexpectedly.
See also: TD Bank review | TD Bank checking account | Best high-yield savings accounts | TD Bank fees
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