In May 2023, TD Bank “revamped” their line of consumer credit cards. In general, there isn’t any reason to consider TD Bank; their credit cards have been worse than competing options for a long time. These cards are still among the worst in the industry even after their updates. Let’s look into why they’re bad and what the alternatives are.
TD Cash Card
⭐⭐
- No annual fee
- 3% foreign transaction fee
- 3% cash back on a quarterly chosen category (previously, 3% back at restaurants)
- 2% cash back on a quarterly chosen category (previously, 2% back at grocery stores)
- 1% cash back on everything else
- Sign-up bonus for May 2023: $150 after spending $500+ in 90 days, plus 5% back on gas for up to 6 months.
Overall, this card is a poor choice. Several other cards offer either (1) 4-6% cash back on dining/groceries or (2) have more than one 3% category. TD Cash is uncompetitive, has a mediocre sign-up bonus, and no one should consider it. They recently changed to a choose-your-own-category system, which seems helpful at first glance, except competing cards are still better. Maybe if TD allowed people to choose two categories for 3% back, then maybe this card would be worth checking out. For example, compare this to the Citi Custom Cash Card, which gets 5% back in one category (and has a higher sign-up bonus).
Eligible TD categories: dining, groceries, entertainment, gas, travel.
Other cards will take care of these categories for you. The Capital One SavorOne gets 3% back for dining, groceries, streaming, and entertainment, plus 5% back or better in multiple other categories—completely blowing TD Bank out of the water. The Wells Fargo Autograph gets 3% back for dining, travel, gas, streaming, and phone plans. TD Bank appears to be aiming mostly at Bank of America’s Customized Cash card (also 3/2/1% and choose-your-own-category) without realizing that Bank of America has the Preferred Rewards program so their “3% back” can go up to 5.25%.
Having one 3% category is a bad choice, while a 2% category is worthless when dozens of cards offer 2+% on everything without category restrictions. Even TD has an option here:
TD Double Up
⭐⭐⭐
- No annual fee
- 3% foreign transaction fee
- 2% cash back on everything
- Sign-up bonus for May 2023: $100 after spending $1,000+ in 90 days.
Getting 2% back on everything is reasonable and many cards now do it. However, since many cards now do this, TD Double Up isn’t notable when compared to other cards. It’s fine, but just “fine.” Nothing to write home about. Competing cards can have fewer fees or a higher sign-up bonus.
Double Up is the best card for long-term use that TD Bank offers.
TD First Class
⭐
- $89 annual fee (waived the first year)
- No foreign transaction fee
- 3x points on travel
- 3x points at restaurants
- 1x points on everything else
- Sign-up bonus for May 2023: 25,000 points ($250) after spending $3,000+ in 6 months.
Another useless TD card. People can get 3% back (or higher) on dining and travel with no-fee cards. TD First Class might be a reasonable consideration if it didn’t have an annual fee. Since you have to pay $89 though, it’s foolish to use the First Class card long-term. Using the card for one year then canceling it might be an okay strategy, but you’d still be better off with a different option in that case, like the Chase Sapphire Preferred or Chase Sapphire Reserve.
The Wells Fargo Autograph and NIH Travel Rewards are two cards which get 3% on travel and restaurants (and more) without an an annual fee. TD Bank should be embarrassed to have a card with an annual fee that’s obviously worse than multiple no-fee competitors. TD “First Class” has few significant perks or benefits and it can’t pay for itself compared to other travel-centered cards. Avoid. TD doesn’t even cover basics like Global Entry.
TD Clear (NEW)
⭐
- $10 or $20 monthly fee
- No foreign transaction fee or other fees
- $1,000 or $2,000 credit limit
- No rewards or sign-up bonus
The perk of this card is that it doesn’t charge interest, but the monthly fee is high, especially compared to the low maximum credit limits. If you have the card maxed out at all times, the fee is equivalent to 12% APR—which is actually fair in today’s environment, when 20-30% APR is common—BUT this is only when you have the card maxed out. If you use the card less often, the equivalent APR can easily rise above 1,000%. And TD Clear doesn’t earn any cash back to offset this.
It doesn’t make sense to use this card for any reason. Plenty of 0% APR cards are out there, as well as balance transfer options, that don’t cost $120-240 per year. Paying off a normal credit card on time also never has fees/interest charged. You have up to a month to pay bills and should never spend beyond your means. Sure, Clear could be cheaper than Netflix, but why bother using this when better options exist? Your credit score may also be harmed by canceling the card.
TD FlexPay (NEW)
⭐
- Can skip a payment once a year (interest still applies)
- No rewards or sign-up bonus
Useless card. It’s almost equivalent to 0% APR for 2 months, except APR still applies, and you can’t use the “skip payment” option until at least 6 months have passed. If you have terrible credit, you may find this useful for the free Cell Phone Insurance that’s on all TD Bank cards. Just don’t use the “skip” feature. Otherwise, look for alternatives.
TD Cash Secured
⭐⭐
- $29 annual fee
- 3% foreign transaction fee
- 1% cash back on everything
- No sign-up bonus
Could be worse. This is better than TD Clear or TD FlexPay for those with poor credit.
Additional Notes
All TD Bank Visa Signature cards have the following benefits:
- Cell phone protection ($50 deductible, maximum $500 per claim)
- Purchase Security
- Extended Warranty Protection
- ID Navigator Powered by Norton LifeLock
- 24/7 concierge with travel and emergency assistance services
- Lost luggage reimbursement
- Roadside Dispatch
Note that you need to be eligible for a credit line of at least $5,000 to get a Visa Signature card. TD Bank also has their regional restrictions and cards may be limited to the Northeast USA only. Side note: TD Bank automatically closes credit cards that haven’t been used in an 18-month period (a year and a half).
Most banks have equal or better benefits to the above. TD isn’t offering anything special here that would be a unique draw. Cell protection is somewhat uncommon at this time, yet more and more banks are offering it.
In conclusion, TD Bank is rarely worth someone’s time.
Note: This review was last updated in May 2023. Details may have changed since then. Please do your own research where applicable, to ensure you’re getting the best deal. Or contact us directly to benefit from our personalized consulting services!