Review: TD High Interest Savings Account

If you deposit $5,000, the interest rate of 0.55% is the same as what both CIBC and RBC Royal Bank offer. However, the rate is lower than the Scotiabank Momentum Savings Account, which has a rate of 1.50%, and the BMO Bank of Montreal Savings Builder Account, which has an interest rate of 1.25%.

And when you compare TD’s rate to the best rate other financial institutions currently have, it’s much lower than what they’re offering:

*currently 2.40% for new clients only for the first 182 days and 0.80% thereafter; rate for current clients is 0.80%

As you can see, there are more than a dozen other financial institutions that offer a better interest rate than TD.

Fees

The TD High Interest Savings Account doesn’t have a monthly fee. But there are a number of transaction fees:

• $2 for each non-TD ATM withdrawal in Canada
• $3 for each ATM withdrawal made in the United States and Mexico
• $5 for each ATM withdrawal outside Canada, the U.S., and Mexico
• $5 for debit transactions (including withdrawals, transfers, cheques, pre-authorized payments, bill payments, and debit payment purchases)

If you’re able to maintain a minimum monthly balance of $25,000 or more, all of your debit transaction fees are waived.

The bottom line

There are a number of financial institutions that offer a better interest rate than what TD’s offering. You can get current rates by comparing the best high-interest savings accounts.

Also read:

• Review: Tangerine Savings Account
• High-interest Savings Accounts and the Benefits of Compounding
• Where Can You Find Savings Rates Higher Than 2.25%?
• Are Promotional Savings Rates Worth It?