As of mid-2025, Toronto-Dominion Bank (TD) and its affiliate TD Canada Trust are in a rate changing environment. Here’s what’s happening:
🔹 Prime Rate Cuts in Canada
- TD Prime Rate:
- 5.20% as of January 30, 2025
- 4.95% as of March 13, 2025, after 25 bps cut (finance.yahoo.com, td.mediaroom.com)
- This follows Bank of Canada rate cuts, with more to come later in the year .
- TD Bank’s 2025 Interest Landscape: Canada & the U.S.
The prime rate impacts mortgage and loan rates, so Canadian borrowers will see lower rates and savers will earn less interest.
Canada: Savings & GIC Rates
💰 Savings Accounts
- Every Day Savings Account: 0.01% – almost no interest (td.com)
- Growth™ Savings Account: Tiered rates; up to 1.5% on balances over $500k, and 1.3% for $100k–$499k (td.com)
- ePremium Savings Account: Flat 0.85% across all tiers (td.com)
- High‑Interest TFSA: 0.50% on balances across tiers
These rates are not very competitive compared to market leaders.TD Bank’s 2025 Interest Landscape: Canada & the U.S.
📈 GIC (Term Deposit) Rates
Promotional and long-term GICs are better:
- Short-term (60–180 days): ~3.05%–3.15%
- 1-year non-cashable: ~4.05%
- 3-year non-cashable: ~3.65%
- 5-year non-cashable: ~3.75%
- Some specialized “Canadian Banking & Utilities” 5-year GICs offer up to 6.50%, but often with caps (nerdwallet.com).
United States: Deposit Rates at TD Bank USA
TD Bank’s U.S. arm offers:
- TD Simple Savings: ~0.02% APY (bankrate.com)* TD Signature Savings: Tiered “relationship” APYs up to 3.25% for balances ≥ $100 k
- Standard APY: ~0.05%, bumped to 1.25–3.25% based on tier/balance
These high-tier rates are good for large balances but less useful for smaller savers. TD also offers Certificates of Deposit (CDs) tied to U.S. Prime rates, often beating traditional savings rates .
🏦 Mortgages & Loans in Canada
- 3-year fixed closed mortgage: ~4.69%–4.72%
- 5-year fixed: ~4.69%–4.71% (forbes.com)
These rates follow the prime rate drops, so borrowers can lock in long-term financing.
✅ What it means for you
For Canadian Savers:
- Low returns on everyday savings—better off putting money in higher-yield GICs or online accounts.
- Promotional GICs are particularly good, with 5-year products up to 6.50%.
For Canadian Borrowers:
- Falling prime rates may lower variable-rate products (e.g., lines of credit, variable mortgages).
- Fixed-rate products still offer higher rates, due to longer-term risk.
For U.S. Customers:
- Keeping ≥ $100 k in Signature Savings gets you 3.25% APY; otherwise, look into CDs or other banking options.
- Simple Savings and general checking earn minimal interest—better used as transactional accounts.
📊 Rate Summary (2025)
Country Product Yield / Rate CA Prime Rate 4.95% (Mar 13, 2025) CA TFSA / Everyday Savings 0.01% – 0.85% CA GICs (Short to 5-year) 3% – 6.5% CA Mortgage (3–5 year fixed) 4.69% – 4.72% US Simple Savings ~0.02% APY US Signature Savings (tiered) 0.05% – 3.25% APY
- Rate changes
🔍 What’s Next
- More BoC cuts — Canadian overnight rate expected to hit 2.25% in Q3 2025 (economics.td.com, td.com, bankrate.com, td.com, investopedia.com, forbes.com)
- Rate re-pricing — TD’s prime and savings rates may drop further.
- Market competition — Online banks are beating TD’s savings returns, making GICs more attractive.
- Borrower benefit — Variable rate customers will benefit the most from rate reductions.
💡 The Bottom Line
Despite the cuts to prime and savings rates, TD is still competitive on longer term and tiered products—especially its GICs in Canada and signature savings in the U.S. You should consider:
- Your balance size (to get higher tier rates)
- Liquidity needs (e.g. flexibility or term locking)
- Product type (variable vs fixed, savings vs GIC/CD)
Smart banking in 2025 means choosing products that maximize yield while considering your access needs.
Let me know if you want to dive deeper into TD’s mortgage options, U.S. CDs or building a balanced savings strategy!