TD Bank Business Checking Accounts: Take It or Not? (Straight Talk on Pricing Specifically as of February 2025)

In This Article

TD Bank offers several business checking account options for small business owners and entrepreneurs like you. With over 1,100 branch locations across the East Coast, TD Bank markets itself as “America’s Most Convenient Bank.” But are its business checking accounts truly convenient and worthwhile for your company? Dive deep into the details to help you make an informed decision.

Let’s Cut To The Chase!

DON’T BUY IF
  • You Operate on the East Coast: Leverage TD Bank’s extensive presence on the East Coast for easy access to branches and ATMs.
  • You Value In-Person Banking: Benefit from face-to-face interactions with bankers, extensive branch network, and extended hours to support your business operations.
  • You Maintain High Account Balances: Enjoy the TD Business Premier Checking℠ account’s comprehensive features without monthly fees if you maintain balances of $40,000 or more.
  • You Handle Large Cash Deposits: Utilize the higher limits on premium accounts like TD Business Premier Checking℠ for cash-intensive businesses.
  • You Need Integrated Services: Take advantage of TD Bank’s ecosystem by bundling checking with their merchant services or online accounting tools for valuable integration.
DON’T BUY IF
  • You Are Fee Sensitive: Avoid monthly maintenance fees if you can’t meet specific balance requirements; consider fee-free banking options instead.
  • You Process High Transaction Volumes: Prevent significant overage fees by choosing accounts without transaction limits if your business has high transaction volumes.
  • You Seek High Interest Rates: Look to online banks or credit unions for better interest rates if earning substantial interest on your checking balance is a priority.
  • You Operate Outside the East Coast: Miss out on the benefits of TD Bank’s physical branch network if your business operates primarily outside their service area.
  • You Prefer Cutting-Edge Tech: Find more innovative solutions with online-only banks or fintech companies if you need advanced digital banking services.
  • You Can’t Maintain High Balances: Avoid unnecessary fees if your business can’t consistently meet balance requirements to waive monthly fees (ranging from $1,500 to $40,000 depending on the account).
  • You Are a Startup or Low-Balance Business: Consider alternatives if your new or low-balance business finds the fee structures and balance requirements burdensome.

The Bottomline

🌐TD Bank business checking accounts can be suitable for East Coast businesses that value in-person banking and can meet balance requirements to waive fees. However, transaction limits, potentially high fees, and mediocre interest rates make these accounts less appealing compared to some online-only or larger national bank alternatives. Consider your specific business needs and compare options carefully before opening an account.

Now, Let’s Detail Things For You

TD Bank offers four main business checking account options. The TD Business Simple Checking℠ requires a $25 opening deposit, has a $10 monthly fee that cannot be waived, allows 200 free transactions per cycle, and permits up to $5,000 in free cash deposits per cycle.

The TD Business Convenience Checking Plus requires a $100 opening deposit, has a $25 monthly fee that can be waived with a $1,500 combined balance, allows 500 free transactions per cycle, and permits up to $5,000 in free cash deposits per cycle. The TD Business Premier Checking℠ requires a $200 opening deposit, has a $30 monthly fee that can be waived with a $40,000 combined balance, allows 500 free transactions per cycle, and permits up to $30,000 in free cash deposits per cycle.

The TD Business Interest Checking Plus requires a $100 opening deposit, has a $15 monthly fee that can be waived with a $2,500 minimum daily balance, allows 200 free transactions per cycle, permits up to $5,000 in free cash deposits per cycle, and earns interest at varying rates.

Be aware of additional fees. Excess transaction fees range from $0.35 to $0.75 per item over the limit, and excess cash deposit fees are $0.25 per $100 over the limit. Out-of-network ATM fees are $3 per transaction, except for Business Premier Checking. Overdraft fees are $35 per item, with some relief options available.

WHAT'S THE CATCH WITH TD BANK BUSINESS CHECKING?

While TD Bank’s business checking accounts appear straightforward, there are some potential “catches” to be aware of. Most accounts have monthly maintenance fees that can only be waived by meeting specific balance requirements, which may be challenging for smaller businesses or startups to maintain consistently. All accounts have limits on free transactions per cycle, and exceeding these limits results in per-item fees, which can add up quickly for businesses with high transaction volumes.

Similarly, there are caps on free cash deposits, which could be problematic for cash-heavy businesses. TD Bank primarily operates on the East Coast, so if your business expands or relocates outside this region, you may find it difficult to access in-person banking services. The interest-bearing account has tiered rates based on balance, where higher balances earn better rates, potentially disadvantageous to smaller businesses.

While basic account features are clearly outlined, pricing for additional services like wire transfers or merchant services isn’t always transparent on the website. Finally, between monthly maintenance fees, transaction overage fees, and service fees, costs can accumulate if you’re not careful in managing your account.

WHAT YOU NEED TO KNOW

Taking a closer look at TD Bank’s business checking accounts reveals how the fee payment structure works and whether it’s favorable for your business needs. TD Business Simple Checking℠ is ideal for new or small businesses with low transaction volumes. TD Business Convenience Checking Plus suits growing businesses with moderate transaction needs. This account offers higher transaction limits.

TD Business Premier Checking℠ is best for established businesses with higher balances and transaction needs. It provides the highest transaction limits. TD Business Interest Checking Plus is designed for businesses wanting to earn interest on their checking balance. It is the only TD business checking account that earns interest, though it has lower transaction limits compared to non-interest-bearing accounts.

Most fees can be waived by meeting balance requirements, except for Business Simple Checking, which has a non-waivable $10 fee. All accounts include access to TD Bank’s digital banking platforms, featuring mobile check deposit, bill pay, and account management tools. TD Small Business Overdraft Relief offers no overdraft fee if overdrawn by $50 or less, with a grace period until 11 p.m. the next business day to make deposits. Replacement debit cards can be issued immediately at any branch.

To open a TD Bank business checking account, you’ll need business formation documents, a tax ID number (EIN or SSN), personal identification, and an initial deposit, which varies by account type.

WHAT ARE TD BANK'S COMPETITORS OFFERING?

To put TD Bank’s business checking offerings in perspective, let’s compare them to some key competitors.

  • Chase: Chase offers business checking account with fees ranging from $0 to $95 that can be waived with a $2,000, $35,000 or $100,000 minimum balance. It offers unlimited electronic deposits and up to 20 teller and paper transactions, along with free cash deposits up to $5,000 per month. Notably, it also includes a $300 sign-up bonus. Compared to TD Bank, Chase offers unlimited electronic transactions and a potentially easier-to-waive monthly fee, but has lower free cash deposit limits.
  • Bank of America: This bank offers business checking accounts like that Bank of America Business Advantage Fundamentals™ Banking has a $16 monthly fee that can be waived with a $5,000 average monthly balance. It provides 200 free transactions per month and free cash deposits up to $7,500 per month. This account also integrates with QuickBooks. Compared to TD Bank, Bank of America offers similar transaction limits to TD’s lower-tier accounts but a higher free cash deposit limit, with a potentially harder-to-waive monthly fee.
  • Wells Fargo: Business checking accounts like the Wells Fargo Initiate Business Checking℠ has a $10 monthly fee that can be waived with a $500 average balance. It includes 100 free transactions per month and free cash deposits up to $5,000 per month, with notable overdraft protection options. Compared to TD Bank, Wells Fargo has a lower monthly fee with an easier-to-reach waiver threshold but offers fewer free transactions than most TD accounts.
  • Novo: Novo has no monthly fees and offers unlimited free transactions. It does not support cash deposits directly but uses third-party services for this purpose. It integrates with popular business tools and offers perks. Compared to TD Bank, Novo has no fees and unlimited transactions but lacks physical branches and direct cash deposit options.

WHAT AFFECTS TD BANK'S PRICES?

Several factors influence the pricing structure of TD Bank’s business checking accounts:

  • Account Type: Different account tiers have varying fee structures, reflecting the level of services and features offered.
  • Balance Maintenance: Higher-tier accounts require larger minimum balances to waive monthly fees, reflecting the bank’s desire to attract and retain businesses with more substantial cash reserves.
  • Transaction Volume: Accounts are priced based on expected transaction volumes, with higher limits on premium accounts.
  • Cash Handling Needs: Free cash deposit limits increase with higher-tier accounts, affecting pricing for businesses that deal heavily in cash.
  • Additional Services Used: While not always reflected in the base account price, using services like merchant processing or online accounting tools may influence overall costs or fee waivers.
  • Competitive Landscape: TD Bank’s pricing is influenced by offerings from both traditional banks and emerging fintech companies in the business banking space.
  • Regulatory Environment: Banking regulations and compliance requirements can impact the costs associated with maintaining and servicing business accounts.

WHAT AFFECTS PRICES IN THE INDUSTRY OVERALL?

The pricing of business checking accounts across the banking industry is influenced by several broader factors:

  • Federal Reserve Policies: Interest rates set by the Federal Reserve impact the overall banking environment, affecting account pricing and features.
  • Economic Conditions: During economic downturns, banks may adjust pricing to maintain profitability or attract businesses seeking financial stability.
  • Technological Advancements: The rise of online and mobile banking has led to increased competition and pressure to offer digital services, impacting overall account costs.
  • Market Competition: The entry of fintech companies and online-only banks into the business banking space has put pressure on traditional banks to innovate and adjust pricing.
  • Operating Costs: Maintaining physical branch networks versus online-only operations significantly impacts a bank’s cost structure and, consequently, its pricing.
  • Cross-Selling Opportunities: Banks may price checking accounts competitively to attract businesses, with the goal of selling additional services like loans or merchant processing.

HOW TO GET THE BEST DEAL WITH TD BANK?

To maximize value and minimize costs with a TD Bank business checking account, consider these strategies:

  • Choose the right account tier by analyzing your business’s transaction volumes and cash handling needs.
  • Aim to consistently meet balance requirements to waive monthly fees. Consider linking personal accounts, if allowed, to meet combined balance thresholds.
  • Monitor your transaction volumes by keeping track of monthly transactions to avoid exceeding free limits.
  • Utilize free services by taking advantage of included features like online banking, mobile deposits, and bill pay. Use TD Bank ATMs to avoid out-of-network fees.
  • Explore relationship benefits by inquiring about discounts or fee waivers for using multiple TD Bank services.
  • Do not hesitate to negotiate terms, especially if you’re bringing significant deposits or multiple accounts.

CAN YOU AFFORD TD BANK'S PRICES?

Have you analyzed your cash flow, evaluated your transaction volumes, considered the opportunity costs, factored in additional services, compared the options to alternatives, projected your business growth, evaluated non-monetary factors, and considered various affordability scenarios?

Determining whether you can afford TD Bank’s business checking accounts requires a careful assessment of your business’s financial situation and banking needs.

FINALLY: SHOULD YOU BUY TD BANK BUSINESS CHECKING OR NOT?

After thoroughly examining TD Bank’s business checking offerings, here’s a nuanced verdict to help you decide. After thoroughly examining TD Bank’s business checking offerings, if you own a small business, you should probably pass on TD Bank’s business checking accounts. Here’s why:

First and foremost, the fees are a major sticking point. Unless you’re consistently maintaining substantial balances, you’re likely to get hit with monthly maintenance fees that can eat into your profits. Even its most basic account, TD Business Simple Checking℠, comes with a non-waivable $10 monthly fee. That’s $120 a year just for the privilege of having an account. In today’s competitive banking landscape, that’s simply not necessary.

The transaction limits are another red flag. All of TD Bank’s business checking accounts come with caps on free transactions. For growing businesses or those with high transaction volumes, this could lead to unexpected fees that quickly add up. In contrast, many online-only banks offer unlimited free transactions.

Speaking of online banking, while TD Bank does offer digital services, it’s not exactly cutting-edge. If you’re a tech-savvy business owner looking for the latest in financial technology integration, you’ll likely find TD Bank’s offerings somewhat lacking compared to some of the more innovative fintech companies out there.

The interest rates on its interest-bearing account are underwhelming, to put it mildly. If you’re hoping to make your money work for you, you’ll find far better rates with online banks or even some credit unions.

But to be real – for the vast majority of small businesses, especially those just starting out or operating on tight margins, TD Bank’s business checking accounts are likely to be more of a financial burden than a benefit.

Final verdict? Look elsewhere. Don’t let the convenience of local branches or the familiarity of a big bank name lure you into an account that’s not optimal for your business. In today’s digital age, you have more options than ever. Take advantage of that and find a business checking account that truly serves your needs without nickel-and-diming you with fees.

Related Articles

Become a

S'witty Kiwi Credit Insider!

Get the latest credit tips and hacks in your inbox!