About TD Cash Credit Card
If you haven’t heard of the TD Cash Credit Card, it just might be because you haven’t heard of TD Bank. The New Jersey-based financial institution doesn’t get nearly the amount of publicity of Bank of America, Wells Fargo or Chase, yet it’s still a top-10 bank based on how much money they’ve got.
That being said, you may not be totally sold on them if, like me, you received a letter in the mail from TD Bank pitching their Cash Credit Card, a cash-rewards card with a 2% bonus on restaurant purchases.
My first instinct was to toss the envelope in the trash, but my curiosity won out and I quickly read through some of the benefits. The card offers some of the rewards you’d expect from a bigger bank like Bank of America, so I was intrigued.
I think my experience was probably a little bit like yours and consumers in general. You find out about a new card either by a letter in the mail, an ad you see while you’re online or maybe an email pitch that passes through your inbox or junk folder.
When you get these offers, what’s the best way to handle them? I’ve found that doing some research on the card’s rewards, benefits, rates and fees as well as what other experts and consumers are saying is an excellent method for figuring out if the card is a good fit.
And, really, finding the card that best fits your spending habits and provides you with rewards you can actually use is what it’s all about.
So, I’m going to talk about each of those topics I listed a few seconds ago so that you’ll be equipped to make a wise choice about the TD Cash Credit Card.
What Are the TD Cash Credit Card’s Rewards?
As I mentioned earlier, the TD Cash Credit Card is a cash-back rewards card. What that means is that, nearly every time you use your TD Cash card to make a purchase, TD Bank makes a small, percentage-based deposit into your rewards account.
What are those percentages? Answering this question gets at the heart of the card’s rewards potential.
TD Bank will give you a bonus of 2% on any dining-out purchases you make and 1% on all other types of purchases, excluding fees you might pay on your credit card or cash-based purchases like traveler’s checks, gambling deposits or the purchase of casino chips.
How much will those bonuses earn you every year? That has a lot to do with how you spend your money. For example, the Bureau of Labor Statistics estimates that the average American household spends around $3,154 on eating out every year, or $262 a month.
Spending that much per month will, over the course of the year, earn you $63 in cash back. Now, if you only spend half of that on eating out every month ($131), your yearly rewards total for dining out will be around $31.50.
If you spend less than $100 a month on eating out, then the rewards drop below $30 per year and you could argue that you aren’t really taking advantage of the card’s bonus. Are you in the “I don’t eat out that much” category? If so, take that into account when deciding if the TD Cash Credit Card is right for you.
If you spend more than the average per month – let’s say $400 instead of the average of $262 – then you can earn nearly $100 a year in cash back.
Remember, though, these dining bonuses are really just the sideshow; it’s the 1% on your “everything else” purchases that will bring you the most cash.
If you’re spending around $20,000 a year on your card, not including eating out, then you’ll get $200 cash back. At $25K, that number goes up to $250, and so on.
In all, we believe the average American family can earn about $263 in cash back each year with this card.
Compared to other credit cards we’ve reviewed, that yearly rewards total is below average.
For example, if you used the Chase Freedom Unlimited, you could rake in nearly $400 a year if you spend $23,000 a year on your card because the Freedom Unlimited has a 1.5% rewards rate.
The Citi Double Cash will give you 1% on your purchase and another 1% when you pay off that purchase for a total of 2% rewards, which is $463 per year if you spend $23,000 per year.
Pro tip: You can redeem your cash back for straight-up cash, or use it in TD Bank’s online shopping portal to book travel, purchase gift certificates or buy merchandise.
$150 Bonus for Spending $500
If you can spend $500 in the first 90 days of owning this card, then TD Bank will give you $150 in cash back. When you add that total to the $263 in yearly rewards we just mentioned, then you can expect $413 in rewards the first year.
Remember, though, that $150 bonus is a one-time deal, so you aren’t going to get it in your second year of owning the card.
The $150 bonus is pretty much standard among cash-back cards – you’ll get the same offer from the Freedom Unlimited and Bank of America Cash Rewards.
At the time of publishing, the Capital One Quicksilver offered a $200 bonus if you could spend $1,000 in the first three months.
Pro tip: TD Bank’s fine print says it will take 6-8 weeks for your $150 to show up in your account once you hit the spending limit.
The TD Cash Credit Card’s Benefits
Credit card benefits are those things that aren’t related to rewards and don’t require spending to augment them or keep them.
Right off the bat, the TD Cash card offers zero liability on fraudulent charges, which means you won’t have to pay a dime if somebody uses your card or your card number to make purchases you didn’t authorize.
Along with zero liability comes the Visa Signature benefits program, something you’ll have access to if your approved credit limit is above $5,000.
While the TD Cash card’s fine print doesn’t specifically say which kind of benefits program you get if your limit is below $5,000, we’re guessing it’s the Visa Platinum program because it’s the next program in line behind Visa Signature.
Assuming you get the Visa Signature card, you’ll enjoy complimentary insurance on rental cars, reimbursement if something you buy goes down in price within 90 days, trip cancellation insurance, delayed baggage insurance and several other features.
The best way to read about what you get with your card is to browse through the benefits guide you get when TD Bank sends you your new card – expect it to show up five to seven days after you’re approved.
The TD Cash Credit Card’s Rates and Fees
There are two sides to every credit card’s story: rewards and fees. The rewards are meant to earn you money, while the fees are meant to earn the credit card issuer money.
Here is a list of the TD Cash’s rates and fees:
- Purchase and balance transfer APR: 13.99%, 18.99% or 23.99%
- Cash advance APR: 24.24%
- Annual fee: None
- Foreign transaction fee: None
- Balance transfer fee: $10 or 4%, whichever is greater
- Late payment fee: Up to $35
The APR on this card is pretty standard, with most of the leading cash-back cards featuring a 13.99% low-end APR.
Where you’ll notice a difference is the foreign transaction fee. Both the Citi Double Cash and the Chase Freedom Unlimited have a 3% foreign transaction fee.
Expert and Consumer Opinions About the TD Cash Credit Card
The experts were unified in their opinion that the TD Cash card is average, at best, and has a cash-back rewards rate that doesn’t match up to other cards.
Consumer opinions were equally tepid, although a bit outdated, with many reviews being more than a year old and written when the card was offering a $100 bonus instead of $150.
Pros of the TD Cash Credit Card
Our examination of the TD Cash card reveals its greatest strengths to be the $150 bonus and the 2% rate on dining-out purchases. As we mentioned earlier, we believe this combination can earn you, along with the 1% rate on all other purchases, more than $400 in rewards your first year.
Cons of the TD Cash Credit Card
We’d say, based on our research, that the TD Cash card’s greatest weakness is its cash-back rates. Other cards on the market can offer more lucrative rewards for your everyday spending.
Who This Card Is Good For
We believe this card is a good fit for someone who spends a lot of money each month on eating out, as the 2% rewards rate can produce a fair amount of rewards each month.
Need to Do More Research on Cash-Back Rewards Cards?
If you aren’t inspired by the rewards the TD Cash card offers, take a few minutes to read through our rankings of the best cash back credit card of 2017. In the article, we put six different cards under a microscope and show you which card can bring you the most cash.
That being said, if you’re a member of the military, our research shows that the USAA Limitless Cashback Rewards Visa Signature card’s 2.5% rewards rate is the best in the business.