Key Takeaway
TD Bank rates are likely to change in 2024, following the expected interest rate cuts by the Bank of Canada and the Federal Reserve. This will affect the interest you earn on your savings accounts, CDs and checking accounts, as well as the interest you pay on your loans and mortgages. To make the most of your TD Bank products, you should monitor the interest rate trends and adjust your financial strategy accordingly.
TD Bank is one of the largest banks in the U.S. and Canada, offering a variety of products and services to its customers, including savings accounts, checking accounts, CDs, mortgages, loans, credit cards and more. If you are a TD Bank customer or are considering becoming one, you may be wondering how the bank’s interest rates will change in 2024 and how that will affect your finances.
In this article, we will provide an overview of the current and projected TD Bank interest rates for 2024, based on the information available from the bank and other sources. We will also explain how the Bank of Canada and the Federal Reserve’s monetary policies influence TD Bank’s rates, and what you can do to take advantage of the best rates available.
Current TD Bank Rates
As of January 24, 2024, these are the current interest rates offered by TD Bank for some of its popular products:
| Product | Interest Rate |
|---|---|
| TD Simple Savings | 0.02% APY |
| TD Signature Savings | 0.01% – 4.00% APY |
| TD Choice Promotional CDs | 1.00% – 2.50% APY |
| TD Beyond Checking | 0.01% – 0.05% APY |
- TD Simple Savings: This is a basic savings account that requires no minimum opening deposit and has a $5 monthly maintenance fee that can be waived in several ways. The account earns a flat 0.02% APY, regardless of the balance.
- TD Signature Savings: This is a high-yield savings account that requires no minimum opening deposit and has a $15 monthly maintenance fee that can be waived in three ways. The account earns tiered interest rates that range from 0.01% to 4.00% APY, depending on the balance and whether the account is linked to an eligible TD Bank checking account, which gives a relationship bump rate.
- TD Choice Promotional CDs: These are certificates of deposit that offer competitive and guaranteed interest rates for fixed terms ranging from 6 to 18 months. The minimum deposit to open a CD is $250, and the interest rates vary depending on the term and whether the account is linked to an eligible TD Bank checking account, which gives a relationship rate. For example, a 12-month CD earns 2.50% APY with a relationship rate and 1.00% APY with a standard rate.
- TD Beyond Checking: This is a checking account that earns interest and offers various perks, such as no ATM fees, overdraft protection and fee waivers. The account requires a $25 monthly maintenance fee that can be waived in three ways. The account earns tiered interest rates that range from 0.01% to 0.05% APY, depending on the balance.
Projected TD Bank Interest Rates for 2024
TD Bank’s interest rates are subject to change at any time without notice, depending on various factors, such as market conditions, customer demand, regulatory requirements and the bank’s profitability. However, one of the main drivers of TD Bank’s interest rates is the monetary policy of the Bank of Canada and the Federal Reserve, which set the benchmark interest rates for the Canadian and U.S. economies, respectively.
The Bank of Canada and the Federal Reserve use their interest rates to influence the cost and availability of money and credit in the economy, which affects inflation, growth, employment and exchange rates. When the central banks raise their interest rates, they make borrowing more expensive and saving more attractive, which tends to slow down inflation and economic activity. When they lower their interest rates, they make borrowing cheaper and saving less rewarding, which tends to stimulate inflation and economic activity.
In 2023, both the Bank of Canada and the Federal Reserve raised their interest rates several times to combat rising inflation, which was fueled by the recovery from the COVID-19 pandemic, supply chain disruptions, labor shortages and higher energy prices. As a result, TD Bank also increased its interest rates on some of its products, such as savings accounts and CDs, to keep up with the market and attract customers.
However, in 2024, the outlook for the central banks’ interest rates is different. According to the latest projections from the Bank of Canada and the Federal Reserve, both central banks are expected to start cutting their interest rates in 2024, as inflation is expected to moderate and economic growth is expected to slow down.
The Bank of Canada announced on January 24, 2024, that it would be holding its overnight interest rate steady at 5%, which is prompting economists with TD Economics to forecast that the first rate cut since the early days of the COVID-19 pandemic may be coming as early as Spring 2024. The Bank of Canada has signaled three interest rate cuts in 2024, according to the Summary of Economic Projections.
The Federal Reserve also indicated that it plans to lower its federal funds rate in 2024, after raising it to 5.25% in December 2023. The Fed’s median projection for the federal funds rate at the end of 2024 is 3.75%, implying three quarter-point cuts. However, some analysts believe that the Fed may cut rates more aggressively, depending on the evolution of inflation, growth and the labor market.
How TD Bank’s Interest Rate Changes Will Affect You
If the Bank of Canada and the Federal Reserve follow through with their interest rate cuts in 2024, TD Bank will likely adjust its interest rates accordingly. This means that you may see lower interest rates on your savings accounts, CDs and checking accounts, but also lower interest rates on your loans and mortgages.
Here are some tips on how to prepare for the possible interest rate changes and make the most of your TD Bank products:
- If you have a savings account, you may want to lock in a higher interest rate by opening a CD before the rates drop. TD Bank offers promotional CDs with attractive rates and terms, and you can get a relationship rate if you link your CD to an eligible TD Bank checking account. However, keep in mind that CDs have early withdrawal penalties, so make sure you can commit to the term and don’t need access to your money before maturity.
- If you have a checking account, you may want to consider switching to a high-yield savings account or a money market account to earn more interest on your balance. TD Bank offers the TD Signature Savings account, which pays up to 4.00% APY with a relationship bump rate, and the TD Beyond Savings account, which pays up to 5.27% APY with a relationship bump rate. Both accounts also waive non-TD ATM fees and reimburse out-of-network ATM fees with a minimum daily balance .
- If you have a loan or a mortgage, you may want to take advantage of the lower interest rates by refinancing your debt or applying for a new loan. TD Bank offers various types of loans and mortgages, such as personal loans, home equity loans, home equity lines of credit, auto loans and more. You can check the current rates and terms on the TD Bank website or contact a TD Bank representative for more information.
Conclusion
TD Bank’s interest rates are likely to change in 2024, following the expected interest rate cuts by the Bank of Canada and the Federal Reserve. This will affect the interest you earn on your savings accounts, CDs and checking accounts, as well as the interest you pay on your loans and mortgages. To make the most of your TD Bank products, you should monitor the interest rate trends and adjust your financial strategy accordingly. You can also contact a TD Bank representative or visit the TD Bank website for more guidance and advice.
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