Review
Updated
Fact Checked
Nathan Alderman
TD Simple Savings is built on the belief that it's never too early to teach kids about money management. According to scientists, children learn faster than adults due to a still-developing prefrontal cortex, better able to create neural connections. In this in-depth expert review, we look at what kids and adults can learn from opening a TD Simple Savings account, and what fees are associated with that account. Ultimately, we aim to help you decide whether the TD Simple Savings account is right for you and/or the children in your life.
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Ratings Methodology
Rates as
of Apr 29, 2024
TD Simple Savings
Member FDIC.
Rating image, 2.50 out of 5 stars.
2.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Rating image, 2.50 out of 5 stars.
2.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Best
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= Excellent
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= Good
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= Fair
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= Poor
= Best
= Excellent
= Good
= Fair = Poor
APY
0.02%
Min. To Earn APY
N/A
- Access to physical locations
- No minimum deposit required
- No maintenance fee for those under 18 or over 62
- Excellent teaching tool
- 24/7 customer service available by phone
- Need to meet certain requirements to avoid $5 monthly fee
- Low APY compared to other banks
- Physical locations only located on East Coast
TD’s Simple Savings Account has no monthly service fee for students, adults under age 24 or age 62 or older, and if account holders maintain a $300 minimum daily balance. There is also no monthly fee for the first 12 months if you make recurring $25 monthly deposits. Using TD ATMs is free, but there is a charge for out-out-network ATMs.
High-yield savings account comparison
We recommend comparing high-yield savings account options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of standout accounts.
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| Account | APY | Promotion | Next Steps |
|---|---|---|---|
Rating image, 4.75 out of 5 stars.
4.75/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
up to 4.60%
Rate info
You can earn the maximum APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.
Min. to earn: $0
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New customers can earn up to a $300 bonus with qualifying direct deposits!
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Rating image, 4.75 out of 5 stars.
4.75/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
5.05% APY for balances of $5,000 or more
Rate info
5.05% APY for balances of $5,000 or more; otherwise, 0.25% APY
Min. to earn: $100 to open account, $5,000 for max APY
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N/A
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Rating image, 4.00 out of 5 stars.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
4.35%
Min. to earn: $0
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New customers can earn a $200 bonus with a minimum $25,000 qualifying deposit. Terms apply.
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TD Simple Savings interest rate
| Account | APY | Minimum Deposit |
|---|---|---|
| TD Simple Savings | 0.02% | $0 |
Data source: TD Bank.
TD Bank's APY is double what some big banks pay, but that still doesn't make it a good APY. You don't need any money to open this account, but check out the best savings accounts for options that can be opened for $0 and earn a much, much higher APY.
Full TD Simple Savings review
The TD Simple Savings account works for households that want their children to grow up understanding the basics of banking. However, it's not just a "kids savings account." Here, we cover the account's strengths and weaknesses.
Top perks
No minimum opening deposit: Unlike most savings accounts, a TD Simple Savings account can be opened with no deposit.
Excellent teaching tool: The best time to learn is when you're young. Rather than just "tell" a child how saving money works, this account allows children to learn firsthand.
Well-rated mobile apps: The TD Bank app has earned an impressive 4.8/5 stars on the Apple Store and 4.3/5 stars on Google Play.
24/7 customer service available: If you're ever looking over your savings account after business hours and have a question, it's good to know that you can call customer service to find the answers you need.
FDIC insured: Your child doesn't have to worry about losing their money if TD Bank goes belly up because the FDIC insures accounts for up to $250,000 per depositor, per bank.
What could be improved
Low APY: The 0.02% APY is unfortunately in line with what many brick-and-mortar banks currently pay.
Number of physical locations: While TD Bank has more than 1,100 brick-and-mortar locations and 2,600 ATMs, they're primarily located along the East Coast. Physical locations are Connecticut, Delaware, Florida, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia, and Washington, D.C. If you want your child to be able to walk into their bank but don't live in one of these areas, you may need to find another bank.
Monthly fees: TD Bank charges a $5 monthly fee for its TD Simple Savings account unless:
- You're 18 or younger, or 62 or older
- You maintain a $300 minimum daily balance
- You complete a monthly recurring transfer of $25 or more from an eligible TD Bank checking account for the first year
- If you're under 24 and link your savings account to a TD Convenience Checking℠ account
How to access your money
How you access your account to make a deposit or withdrawal depends on how near you live to TD Bank.
Deposit options
There are several ways to deposit funds into your TD Simple Savings account, including:
- Through direct deposit
- Mailing or delivering a check
- Depositing through a TD Bank ATM
- Transferring from another TD Bank account
- Via mobile check deposit
- Through a wire transfer
Withdrawal options
Your withdrawal options include:
- In-branch withdrawal
- ATM withdrawal
- Electronic bank transfer
- Wire transfer
- Transfer to another TD Bank account
TD Simple Savings is right for you if:
A TD Simple Savings account could be right for you if you've banked with TD Bank for years and wish to keep all of your accounts under one roof. It's also right for you if there's a child or young adult in your life that you would like to introduce to the fundamentals of savings.
Keep reading about TD Bank
Our savings account methodology
At The Motley Fool Ascent, we rate savings accounts on a five-star scale (1 = poor, 5 = best). We evaluate all savings accounts across four main criteria: annual percentage yield (APY), brand and reputation, fees and minimum requirements, and perks that really make a difference -- think ATM access, linked checking accounts, or even branch access.
Our scores are weighted as:
- APY: 50%
- Brand and reputation: 20%
- Fees and minimums: 15%
- Other perks: 15%
Learn more about how The Motley Fool Ascent rates bank accounts.
FAQs
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You may want to leave enough in a TD Simple Savings account to cover emergencies but deposit most of your savings in a high-interest savings or money market account (MMA) elsewhere.
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No. Banks roughly follow the lead of the Federal Reserve when it comes to interest rates. However, you can typically find a higher APY by opening a savings account with an online-only bank.
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Having your savings and checking accounts with the same bank is convenient. If you ever need to transfer money between the two, it can quickly be accomplished.
Our Banking Experts
Dana George has a BA in Management and Organization Development from Spring Arbor University. For more than 25 years, she has written and reported on business and finance, and she's still passionate about her work. Dana and her husband recently moved to Champaign, Illinois, home of the Fighting Illini. And though she finds the color orange unflattering on most people, she thinks they'll enjoy Champaign tremendously.
Fact Checked
Nathan Alderman
Nathan Alderman has worked with The Motley Fool since 2005, making errors his arch-enemies in a variety of roles including a six-year stint as the dedicated fact-checker for The Motley Fool's premium newsletter services. As The Ascent's Compliance Lead, he makes sure that all the site's information is accurate and up to date, which ensures we always steer readers right and keeps various financial partners happy. A graduate of Northwestern University's Medill School of Journalism, Nathan spends his spare time volunteering for civic causes, writing and podcasting for fun, adoring his wife, and wrangling his two very large young children.
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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
American Express is an advertising partner of The Ascent, a Motley Fool company. Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Dana George has positions in Apple and Target. The Motley Fool has positions in and recommends Alphabet, Apple, and Target. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.