If you’re willing to actively choose your bonus categories and monitor your spending in them, this card can be quite lucrative, especially since there's no cap on rewards. But it's available to less than half of the United States.
- No annual fee
- Customize rewards categories
- Introductory grocery rewards
- Limited to certain states
- Requires good to excellent credit
- Foreign transaction fee
Detailed review: TD Cash Credit Card
No matter how you spend your money, the TD Cash Credit Card can be a rewarding option. That’s because unlike most rewards cards, it doesn't have set bonus categories. Instead, you get to pick what purchases earn elevated rewards, from a list of popular options.
It also has a $0 annual fee and offers a sign-up bonus: Earn $150 Cash Back when you spend $500 within 90 days after account opening. Plus, for a limited time, the card provides an additional bonus on grocery store purchases. Terms apply; see below. These features position it as a strong rival to other customizable rewards cards like the Bank of America® Customized Cash Rewards credit card or the Citi Custom Cash® Card. Unlike those cards, the TD Cash Credit Card has no cap on its ongoing rewards earnings.
The primary drawback, however, is the card's limited availability. If you live on the West Coast, for example, you're out of luck.
TD Cash Credit Card: Basics
Card type: Cash back.
Annual fee: $0
Earn $150 Cash Back when you spend $500 within 90 days after account opening.
Choose your top two spending categories (from a list; see below) to earn unlimited 3% and 2% cash back, respectively. (You can switch those bonus categories up to four times a year.)
Earn unlimited 1% cash back on all other purchases.
Limited time: New cardholders can earn bonus cash back on grocery purchases for six months or up to $6,000 in spending. See below.
Intro APR: Balance transfer offer: 0% introductory APR balance transfers for first 12 billing cycles after account opening. After that, 20.24%, 25.24% or 30.24% variable APR based on your creditworthiness.
Balance transfer fee: Either $5 or 3% of the amount of each transfer, whichever is greater
Foreign transaction fee: 3%
Benefits and perks
With the TD Cash Credit Card, you can pick two categories from the list below that will earn elevated rewards, one at 3% cash back and another at 2% cash back:
All other purchases earn 1% cash back.
By default, your initial 3% category will be dining, and your initial 2% category will be grocery stores, but you'll have about a month from account opening to change those if desired. In fact, you can change your categories at any point, but it won't take effect until the following quarter.
Customizable rewards like this aren't unique. And some — such as the Citi Custom Cash® Card and the U.S. Bank Cash+® Visa Signature® Card — offer higher possible reward rates and more bonus-category possibilities. But compared with the competition, the TD Cash Credit Card does have one major strength: You'll earn unlimited rewards in your chosen spending categories. Most of the card's chief competitors implement spending caps on their customizable rewards.
Elevated grocery rewards for new cardholders
An impressive perk, new TD Cash Credit Card customers can earn up to 6% cash back on grocery store purchases for the first six months from account opening or up to $6,000 in spend, whichever comes first.
The offer works by applying an additional 3% cash back on grocery purchases to the spend category you choose. Initially, grocery stores default to the 2% spend category, meaning you’ll get 5% total back on those purchases. If you choose to move grocery stores to the 3% category, though, you can increase that to 6% back. On the other hand, moving grocery stores to the 1% spend category would mean you earn 4% back during that initial period.
Once you reach the cap of six months after account opening or $6,000 in spending, your earnings rate on grocery store purchases will revert back to the earnings rate you’ve selected — either 3%, 2% or 1%.
Superstores such as Target and Walmart, along with warehouse clubs such as Costco and Sam’s Club, don’t qualify for elevated grocery rewards. Regardless of your customized categories, purchases at these stores are eligible to earn just 1% back.
Decent intro APR offer on balance transfers
Here's how the issuer puts it: Balance transfer offer: 0% introductory APR balance transfers for first 12 billing cycles after account opening. After that, 20.24%, 25.24% or 30.24% variable APR based on your creditworthiness. You'll owe a 3% fee on balance transfers (minimum $5), but that's on the lower end of typical balance transfer fees, which generally range from 3% to 5%.
Flexible redemption options
As much as the TD Cash Credit Card focuses on cash back (it's in the card's name, after all), you actually have a variety of choices when redeeming points. In addition to getting cash back in the form of a statement credit or direct deposit into your bank account, you can also redeem points for travel, gift cards and merchandise.
Points are worth 1 cent apiece when you redeem them for cash back, and at least 1 cent apiece when you redeem for travel or gift cards. Point values also vary when you redeem for merchandise. If you opt for cash back, you must redeem a minimum of 2,500 points.
Drawbacks and considerations
You must live in certain states to apply
The West Coast isn't the best coast when it comes to the TD Cash Credit Card. To be eligible to apply for the card, you must be a resident of one of the following places:
Foreign transaction fees
If you need a credit card that can handle international travel, the TD Cash Credit Card isn't a good pick. It carries a 3% foreign transaction fee, making it an expensive payment option when traveling abroad.
No introductory APR on purchases
Although the TD Cash Credit Card provides a decent intro APR offer on balance transfers, it doesn’t extend that same benefit to purchases made with the card. This means you'll start accruing interest on new purchases from the moment you make them.
The issuer does offer a caveat here. If you’ve taken advantage of the 0% introductory APR balance transfer offer and you pay the "Payment to Avoid Purchase Interest" amount shown on your account statement each billing cycle, you can avoid accruing interest on purchases.
At face value, this may seem like a good deal, but it’s effectively the same as avoiding interest charges by paying your statement balance on purchases each month, which is not a unique feature; all cards offer it. Plus, it could slow you down on paying off your balance transfer during the introductory APR period.
If the TD Cash Credit Card isn't available in your state, consider the Bank of America® Customized Cash Rewards credit card card instead. It's a similar $0-annual-fee card with customizable rewards (though they do come with a spending cap).
How to decide if it's right for you
For customers who live in an eligible area and want to maximize rewards on particular spending categories, the TD Cash Credit Card can be a great pick. Compared with other cards with customizable rewards categories, it adds the advantage of having no cap on ongoing rewards.
But again, it's available to less than half of the United States. And with a 3% foreign transaction fee and no introductory APR offer on purchases, it’s not an ideal choice for international travelers or anyone who intends to carry a balance from month to month.