TD Credit Card Cash Back: What You Get and What You Pay

TD Bank offers several credit cards that return a percentage of your spending as cash back. The most common is the TD Cash Unlimited card, which returns 1.5% cash back on all purchases with no bonus categories or rotating rewards. Other TD cards like the TD Premium Cash offer higher cash back rates (2% or 3%) on specific categories such as groceries, gas, or dining, but charge an annual fee to access those rates.

The trade-off is straightforward: higher cash back percentages usually come with an annual fee, while cards with no annual fee offer lower cash back rates. Whether that trade works in your favor depends on how much you spend and where you spend it. A card that charges $95 per year needs to generate at least $95 in cash back to break even — that means you need to spend roughly $6,300 per year on a 1.5% card, or less if you concentrate spending in higher-reward categories.

Key Takeaways

  • TD's no-annual-fee cash back cards return 1.5% on all purchases, while cards with annual fees return 2% to 3% on specific categories like groceries or gas.
  • Cash back from TD cards is usually deposited into your TD checking or savings account, though some cards allow you to redeem it as a statement credit or transfer it to other accounts.
  • You earn cash back on the full purchase amount, including tax, but only on transactions posted to your account — pending charges do not count until they settle.
  • TD cards do not offer sign-up bonuses or rotating bonus categories, so your cash back rate stays the same every month regardless of the season or promotion.

How Cash Back Deposits Work

When you make a purchase with a TD cash back card, the cash back accrues in your rewards account. TD typically deposits cash back into your linked TD checking or savings account once per month, usually around the statement closing date. You do not have to do anything to trigger the deposit — it happens automatically if you have set up a linked account during card setup.

If you do not have a TD deposit account, you can still earn cash back, but you will need to request a redemption. Some TD cards allow you to redeem cash back as a statement credit (applied to your next bill) or as a check mailed to your address. The redemption process varies by card, so check your card's terms or log into your TD online account to see your options.

Cash back does not expire as long as your account remains open and in good standing. If you close the card, you typically have a window (often 30 to 60 days) to redeem any remaining cash back before it is forfeited. Check your card agreement for the exact policy.

Which Purchases Earn Cash Back

TD cash back cards earn rewards on nearly all purchases: groceries, gas, restaurants, online shopping, utilities, and most other everyday spending. The main exceptions are balance transfers, cash advances, and fees (such as late fees or annual fees). Some cards also exclude purchases made outside the United States, though this varies by card.

Cash back is calculated on the full transaction amount, including sales tax. If you buy groceries for $50 and pay $52.50 with tax, you earn cash back on the full $52.50. The cash back is credited to your rewards account when the transaction posts to your account, which usually happens within one to three business days of the purchase, though it can take longer for some merchants.

Annual Fees and When They Make Sense

TD's premium cash back cards charge annual fees ranging from $95 to $150 or more, depending on the card. These cards typically offer higher cash back rates in specific categories — for example, 3% on groceries and gas, 2% on dining, and 1% on everything else. To determine whether the fee is worth it, calculate your annual spending in the bonus categories and multiply by the extra cash back you would earn.

Example: If a card charges $95 per year and offers 3% cash back on groceries instead of 1.5%, you earn an extra 1.5% on grocery spending. You need to spend about $6,300 per year on groceries to earn $95 in extra cash back and break even on the fee. If you spend $10,000 per year on groceries, you come out $55 ahead after the fee.

If most of your spending is outside the bonus categories, or if you spend less than $5,000 per year total, a no-annual-fee card with flat 1.5% cash back is usually the better choice. The math changes if you also value other card benefits like travel insurance or purchase protection, which some premium TD cards include.

How Cash Back Affects Your Credit Score

Earning cash back does not directly affect your credit score. Your score is based on payment history, credit utilization (how much of your available credit you use), length of credit history, and other factors — not on rewards earned. However, the way you use a cash back card can affect your score indirectly.

If you spend more because you are earning cash back and carry a balance, your credit utilization will increase, which can lower your score. If you pay your full balance on time every month, your score will not be harmed. In fact, using a card responsibly and paying it off regularly can help build credit over time.

Redeeming Cash Back and Minimums

Most TD cash back cards have no minimum redemption amount — you can redeem $1 if you want to. However, some cards require a minimum of $25 or $50 before you can request a redemption. Check your specific card's terms to confirm.

If your cash back is set to auto-deposit into a TD account, it will transfer automatically each month regardless of the amount. If you are redeeming manually (as a statement credit or check), you can choose when to redeem and how much, as long as you meet any minimum threshold.

Cash back redeemed as a statement credit is applied to your next billing cycle and reduces the amount you owe. Cash back redeemed as a check is mailed to your address on file and typically arrives within 7 to 10 business days. Some cards also allow you to transfer cash back to a linked external bank account, though this option is less common.

Comparing TD Cash Back to Other Banks

TD's cash back rates are competitive but not the highest in the market. Many other banks offer 1.5% to 2% cash back on all purchases with no annual fee, and some offer higher rates in specific categories without charging a fee. For example, some competitors offer 2% cash back on groceries and gas, or 3% on dining, with no annual fee.

The advantage of a TD card is convenience if you already bank with TD — your cash back deposits directly into your checking account, and you can manage everything in one place. If you do not bank with TD, you may find better value with a card from your current bank or a card that offers higher cash back rates in your spending categories.

Frequently Asked Questions

Can I earn cash back on credit card payments or balance transfers?

No. Cash back is earned only on regular purchases. Balance transfers, cash advances, and payments to other credit cards do not earn rewards. Some cards also exclude wire transfers and certain merchant categories, so check your card agreement for the full list.

What happens to my cash back if I close the card?

You usually have 30 to 60 days to redeem any remaining cash back after closing the card. After that window closes, any unredeemed cash back is forfeited. Redeem your balance before closing to avoid losing it.

Do I have to pay taxes on cash back?

Cash back from credit cards is generally not considered taxable income by the IRS because it is treated as a discount on your purchase, not a payment or rebate. You do not report it on your tax return. However, if you have questions about your specific situation, consult a tax professional.

Can I combine cash back from multiple TD cards?

Cash back is tracked separately for each card, and redemptions are made from individual card accounts. You cannot combine balances across cards, but you can redeem from each card independently and deposit the cash back into the same bank account.

How long does it take for cash back to post after I make a purchase?

Cash back is credited to your rewards account when the transaction posts to your card, usually within one to three business days. Monthly deposits to your bank account happen around your statement closing date. The entire process from purchase to deposit typically takes one to two weeks.