The TD Cash Credit Card is a no-annual-fee cash back card issued by TD Bank in the U.S. Its most recently publicized welcome offer is $200 after you spend $1,000 within 90 days of opening the account. Its main feature is that you can choose your own 3% and 2% cash back categories, selecting from dining, entertainment, gas stations, grocery stores, and travel each quarter. However, you must live in a U.S. East Coast state where TD Bank offers credit cards to apply.

TD Cash Credit Card Overview

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TD Cash

Choose your own 3% and 2% categories, with no cap!

  • Welcome bonus: $200 cash back (spend $1,000 in 90 days)
  • Rewards: Choose one 3% category and one 2% category (dining, entertainment, gas stations, grocery stores, travel); 1% on all other purchases
  • Redemption: Redeem directly for cash, starting at $25
  • Annual fee: $0
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Pros

  • Choose your own 3% and 2% categories. The default categories for new cardholders are 3% cash back on dining and 2% on groceries, but you can adjust them to fit your lifestyle. If you don't spend much on dining but travel frequently or drive often, consider choosing Travel or Gas for a higher cash back rate. There is no common quarterly spending cap for either bonus category, but purchases must qualify under the merchant category rules.
  • 12-month introductory APR period: Purchases have a 0% APR for the first 12 billing cycles. You can avoid interest during this period by paying at least the minimum amount due each month.
  • Visa benefits included. TD's website lists benefits such as cell phone protection. Typically, you must pay your cell phone bill with an eligible card. Coverage and deductibles are subject to the benefit terms.

Cons

  • Only two bonus categories. All other purchases earn just 1% cash back. If your spending is spread across many categories, a card that earns 2% on all purchases may be more convenient.
  • Category changes don't take effect immediately at any time. Dining at 3% and groceries at 2% are the default categories when you open the account. You have one opportunity to change the initial categories within 30 days of opening the account. Later changes selected during a quarter generally take effect in the next calendar quarter. If you don't make a change, your existing categories remain in place.
  • Merchant category restrictions apply. Under the rules on TD's website, purchases at superstores and warehouse clubs such as Walmart, Costco, and Sam's Club generally earn just 1% cash back; buying fresh food there doesn't make the purchase eligible for the Grocery category.
  • Not suited for purchases abroad. The 3% foreign transaction fee will largely offset the cash back.

Redeeming Cash Back

Although the TD Cash is called a cash back card, rewards are tracked as points: You generally earn 1, 2, or 3 points per $1 in eligible purchases, corresponding to 1%, 2%, or 3% in cash value. Redemptions start at 2,500 points, or $25, and the most straightforward option is a Statement Credit. You may also transfer rewards to an eligible TD Bank U.S. Checking or Savings account, subject to the bank's rules.

As long as your account remains open and in good standing, points generally don't expire.

My Take

The card's 3% category is quite good: You can choose it yourself, and there is no common $1,500 quarterly spending cap on cash back. For example, people who spend heavily on dining and travel may come out ahead compared with using a standard card that earns 2% on all purchases. The unlimited 3% cash back at grocery stores is also a nice feature for people who shop for groceries frequently.

Applying

  • Geographic restrictions: TD U.S. credit cards are primarily available to residents of CT, DE, FL, ME, MD, MA, NH, NJ, NY, NC, PA, RI, SC, VT, VA, and Washington, D.C. Residents of California and Texas generally cannot apply.
  • Welcome offer restrictions: The terms on TD's website restrict applicants who have already received a One-Time Bonus Offer on this card or another TD account. If you have recently received a TD credit card bonus, read the final application terms carefully.
  • Canadian customers: This is a U.S. TD Bank credit card, not a card issued in Canada by TD Canada Trust. TD has separate application information for Cross-Border Clients, but applicants must meet TD's U.S. bank approval requirements.

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