Even though the TD Bank Cash Credit Card has quite a few perks, especially considering the customizable spending categories, there are a few downsides to take note of, such as its availability in only 16 states, its redemption restrictions, foreign transaction fee and no intro APR on purchases.
Availability: Only available in certain regions
The TD Bank Cash Card is not widely available, as it’s only offered to residents in the following states: Connecticut, Delaware, Florida, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Virginia, Vermont, Washington, D.C.
If you live on the west coast or in the Midwest of the U.S., then you’re not going to be eligible to apply for this card, which greatly limits potential applicants to less than half of U.S. residents.
Redemption: Rewards system is complex
To redeem your TD rewards, log into your account on the rewards program website or call customer service. When redeeming, you can request your cash back as either a statement credit or direct deposit, or you can redeem points for for travel, gift cards and merchandise.
However, you can only redeem your TD rewards for cash back once you’ve reached 2,500 points in your account. Since each point is worth at least $0.01, redeeming 2,500 would equal $25 cash back.
Not only does the restriction create a small barrier for redemption, but the variation of cash back and points for the TD Bank Cash’s rewards system can make redemption seem more complicated than necessary, as 3 percent and 2 percent cash back is technically equivalent to 3 points and 2 points per dollar spent, and there is no varying points value despite the two rewards tiers.
Rates and fees: Has a foreign transaction fee
The card doesn’t charge an annual fee, which is great for a cash back card, but it does charge a 3 percent foreign transaction fee, which doesn’t make it a great choice for international travel even though it rewards this category. If you need cash back card that’s good for traveling abroad, there are plenty of better options (such as the previously mentioned Capital One SavorOne Cash Rewards Credit Card).
Plus, if you do decide to utilize the intro APR for a balance transfer, you’ll pay a fee of either $5 or 3 percent of the transaction, whichever amount is higher.
There’s also a cash advance fee of $10 or 5 percent of the transaction, whichever is greater, and cash advances have a variable APR of 30.39 percent. The card has a minimum interest charge of $1, and finally, there are penalty fees up to $40 for either late or returned payments.