Learn about the new features and cards that TD Bank offers. Reuters
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TD Bank introduced two new credit cards on Tuesday. The TD Clear card has a monthly charge but no interest. TD FlexPay offers a 0% annual rate for 18 months.
Two TD Bank credit cards with cash back, TD Double Up, and TD Cash have launched new features which give cardholders greater control over their rewards.
What are the key features of TD Clear?
TD Clear has a unique structure. Consumers can choose to pay a monthly fee of $10 for a credit limit of $1,000 or $20 for a credit limit $2,000 instead.
You'll pay $45 per month for a $1,000 credit limit. For a $2,000 limit, the minimum payment is $70. The fee is included in both payments, and it counts against your credit limits.
It adds flexibility because there is no need to worry about running out of money from month-to-month, says Jonathan Kiehl. He's a certified financial planner, and the founder of Evenkiehl Financial Planning in Lancaster, Pennsylvania. But it comes at a high price.
Imagine you have a $500 balance on your TD Clear Card with a credit limit of $1,000. If your billing period is for 30 days, that translates to an APR rate of 24.33%. According to the Federal Reserve, the average rate of interest on all credit cards was 20.09% in February 2023.
The APR for a $1,000 credit card balance is 12.17%. However, you will be using your entire credit limit which could harm your credit rating. It's always best to avoid carrying a balance. You won't be charged interest on a credit card if you pay your balance in full each month.
If you are going to carry a credit card balance, I would never recommend it. Beverly Harzog, U.S. News' credit card expert, says that this is one of her rules for responsibly using credit cards.
TD Clear is a good option if you are confused by interest rates but want to still use a credit cards. It creates predictability and a sense control. You can budget with it.
What are the key features of TD FlexPay?
TD FlexPay offers a 0% introductory rate on balance transfers, for a period of 18 months. This makes it one of the best credit cards with 0% APR.
Cardholders are also allowed to skip one payment per year, without incurring any penalties. This feature is only available to cardholders who have held the card at least six month and are in good standing.
You will still accrue interest on your balance if you miss a payment. Cardholders can also get a refund for one late payment fee every 12 bills.
Harzog warns against skipping payments with this card. She says that people can adapt to rules, and to the fact that they must pay their bills every month.
What are the new features of TD Double Up Cash and TD Cash?
TD Double Up offers greater flexibility for cash back redemption. Cardholders no longer need to redeem rewards into a TD Bank account to earn 2% Cash Back. All purchases will now earn 2% cashback.
TD Cash, a cash-back credit card, also offers cash back at 3%, 2%, and 1% levels. The 3% and the 2% cashback categories of the card will have more flexibility with this update. Cardholders can now choose their quarterly categories, instead of having the 3% or 2% cash back only apply to purchases made at grocery stores and restaurants. The categories include travel, entertainment and gas, groceries, dining, and grocery store.
TD Double Up offers a good option for those looking for a rewards card that is simple. Other credit cards that offer 2% cashback are also worth considering. TD Cash offers strong cashback rates to customers who spend within its bonus categories.