TD Bank CD Rates and Review

TD Bank offers a unique set of CD (certificate of deposit) products for both consumers and businesses. What sets their deposit product offerings apart from other credit unions and banks is that they offer “Step Up” CD’s which basically come with incrementally increasing interest rates as your deposit gets closer to maturity. Below are the going rates for these CD’s. As a side note their personal CD’s are currently yielding slightly lower rates than the national average for CD rates.

About TD Bank:

TD Bank claims to be America’s most convenient bank (so much so that they’ve actually trademarked the term “America’s most convenient bank”). They are one of the 15 largest banks in the United States with $160 billion in assets, and provides customers with a full range of financial products and services at more than 1,100 retail stores throughout the Northeast, Mid-Atlantic, Metro D.C. and Florida.

Company History:

The company first opened its doors as Portland Savings Bank in Portland, Maine, in 1852, and later grew through a series of mergers and became Peoples Heritage Bank in 1983. At the turn of the millennium, the opportunity for growth presented itself again as Peoples Heritage Bank, through several acquisitions, expanded deeper into New England and took the name Banknorth.

Meanwhile, Cherry Hill, New Jersey-based Commerce Bank was turning Customers into Fans as America’s Most Convenient Bank. Founded in 1973, Commerce Bank expanded rapidly over the next 30 years into metro New York and Philadelphia, Washington D.C., and South Florida, winning new Customers with WOW! service and convenience.

In 2004, Banknorth caught the eye of TD Bank Financial Group of Toronto, Canada, a top 10 financial services company in North America. TD Bank Financial Group soon became Banknorth’s majority shareholder and the company became known as TD Banknorth. TD Bank Financial Group completed its purchase of TD Banknorth in 2007.

Looking to expand further in the U.S., TD Bank Financial Group acquired Commerce Bank on March 31, 2008, and the company rebranded as TD Bank, America’s Most Convenient Bank. TD Banknorth locations followed suit in September 2009, completing the merger of the two companies and uniting them under the TD Bank brand name.

Today, TD Bank, America’s Most Convenient Bank, remains focused on delivering award-winning Customer service and hassle-free products to Customers from Maine to Florida.

Current CD Rates offered by TD Bank:

Basic CD’s

- 9 month CD yielding 0.65% APY with a minimum deposit of $250 required. The current national average for 6 month CDs sits at roughly 0.78% APY (to put this offer in perspective).

- Other terms available, contact a local rep for current rates.

No Catch CD’s

- 6 month CD yielding 0.45% APY with a minimum deposit of $250 required and one penalty-free withdrawal allowed.

- 12 month CD yielding 0.40% APY with a minimum deposit of $250 required and one penalty-free withdrawal allowed.

Step Rate CD’s

- 3 year CD yielding 1.47% APY. Year 1 yields 0.90% APY, year 2 yeilds 1.24% APY and year 3 yields 2.24% APY.

- 5 year CD yielding 1.80% APY. Year 1 yields 0.75% APY, year 2 yeilds 1.00% APY, year 3 yields 1.74% APY, year 4 yields 2.23% APY and year 5 yields 3.20% APY.

* For the Step Rate CD the annual percentage yield is a Composite APY. The APY assumes each stated interest rate will be in effect for the length of time identified (one (1) year period).

TD Bank has locations in Connecticut, Washington D.C., New Jersey, New York, New Hampshire, Florida, Massachussetts, Maryland, Maine, Pennsylvania, Vermont and Virginia.

Also check out: TD Bank’s Checking Account Bonus

Best money market account rates in Washington DC area: Top 3

Below are the highest yielding money market account rates serving citizens of Washington DC (District of Columbia).

If you are strictly after the best interest rate then you have a variety of options that will provide you with similar yields. The question you need to ask yourself is, “what type of minimum balance can I keep?” Most money market accounts provide a given interest rate based on a certain account balance. The more money you are able to keep in these accounts, the higher the interest rate you will generally receive.

After sorting through dozens of interest rate tables belonging to banks and credit unions serving the Washington DC area, we have found that in many instances you will lock in more competitive rates with national institutions rather than local ones (if you are eligible). Before committing to one of the banks/credit unions listed below, you may want to browse through our national money market rates tables.

Keep in mind, money market rates are time-sensitive in nature, therefor you may want to refer to the date of this article for accuracy. As with all money market accounts, the interest rates are variable and are subject to change without notice.

Top 3 money market rates in Washington DC:

(this information is time-sensitive)

1. Urban Trust Bank has a money market account which is providing an interest rate of 1.45% APY when balance of $10,000 or more is held. Urban Trust Bank is headquartered in Bethesda, Maryland and has several locations (either physical branch or ATM) in Virginia, Maryland and Washington DC.
2. NLRB Federal Credit union has a money market account yielding 1.41% APY when a balance of $2,000 is maintained. NLRB has fairly strict eligibility requirements (as most credit unions do) and has several locations, either ATM or physical branch in Maryland, Virginia and Washington DC. They primarily operate out of the District of Columbia.
3. Government Printing Office Federal Credit Union has a money market account which is providing an interest rate of 1.257% APY when a minimum balance of $10,000 is maintained. You will need to be employed by a specific branch of the federal government to join this credit union. They have locations in the Washington DC area.

All of the above institutions are federally insured by either the NCUA or FDIC. If you live in the District of Columbia and know of a better money market rate offered through your local institution, please share by leaving a comment.

Best certificate of deposit rates in Washington D.C.

Below are the top 3 CD rates for residents in the District of Columbia area. After researching CD rates available to customers in this region, I compiled a list of the best 3. They come in the form of 12 month CD’s, 24 month CD’s and 36 month CD’s. As you probably know, you will almost always find higher interest rates accompanied with longer maturities, therefor I found the rates which beat the national average by the highest margins. When compared to the rates offered by the large national banks, I found that local, Washington DC area banks and credit unions generally offered better deals. Many of the credit unions serving this area are geared towards federal employees, and thus offer slightly better savings rates. Before you select a local bank/credit union below, you may want to compare nationally available CD rates.

Top 3 CD rates (District of Columbia):

(clicking on the institution will bring you to their rates page)

Washington Postal Employees Federal Credit Union: Washington DC. 12 month CD yielding 2.56% APY with a minimum deposit amount of $500. The national average for 12 month certificate of deposit rates sits at roughly 1.70% APY. If you are eligible to join this credit union and wish to take advantage of their CD rates, you may want to contact a representative first. Their rates haven’t been updated since the beginning of March and may have changed since then as the national average has trended downward. Washington Postal Employees FCU serves postal employees within the District of Columbia and their immediate families. Membership starts when you open a share (savings) account. This is a basic dividend-earning savings account. Once you join, you can take advantage of any other service. Everyone in your immediate family is also eligible.

AB & W Credit Union: Alexandria, Virginia. 24 month CD yielding 2.78% APY with a minimum deposit amount of $1,000. The interest on this account is compounded quarterly. Like Washington Postal Employees FCU, AB & W CU hasn’t updated their rates in a while. According to their rates page they were last updated on the 26th of January and CD rates in general have certainly trended downward since then. I would suggest contacting a rep before attempting to open an account just to make sure the rates are still accurate and active. Membership is available to the following individuals:

• Employees of Washington Metropolitan Area Transit Authority (Metro)
• Employees of the Society for Human Resource Management (SHRM)
• Employees and retired employees of the Richmond, Fredericksburg, and Potomac Railroad
• Officers and employees of standard railway labor organizations representing Richmond, Fredericksburg and Potomac Railroad employees
• Employees of National Railroad Passenger corporation (AMTRAK)
• Employees of American Property Construction Company
• Employees of ATE Management & Service Company, Inc.
• Employees of this credit union and their immediate families
• The Board of Directors of this Credit Union and members of their immediate famliy
• The immediate family of current members

John Marshall Bank: Arlington, Virginia. 36 month CD yielding 3.04% APY with a minimum balance amount of $500. The current national average for 3 year CD’s sits at around 2.30% APY. John Marshall Bank is relatively new. It first opened in 2006 in Falls Church, Virginia and currently boasts the “largest surcharge free ATM network” with 32,000 free ATM locations nationwide. There are no eligibilty requirements listed on their website which leads me to believe they may be nationally available. You may want to contact a rep for further qualifications.

All the institutions listed above are federally insured banks and credit unions (federally insured by either the FDIC or NCUA up to $250,000). If you know of a local Washington DC area bank or credit union offering better rates on certificates of deposit please share by leaving a comment below!