What TD credit card cash back means
TD Bank offers cash back on several of its credit cards, which means you earn a percentage of what you spend and can use those earnings as a statement credit, a deposit to your TD account, or a check. The cash back rate depends on which TD card you hold — some cards earn a flat rate on all purchases, while others earn higher rates in specific categories like groceries or gas.
Cash back is not a reward you have to redeem through a separate portal or points system. It accumulates automatically as you use the card, and you decide when and how to use it. You do not have to wait until you reach a minimum balance to cash out, though some cards have terms about when the cash back posts to your account.
Key Takeaways
- TD cash back cards earn between 1% and 3% depending on the card and the category of purchase, with rates posted on the card's terms page.
- Cash back posts to your account automatically and can be redeemed as a statement credit, a bank deposit, or a check without a minimum threshold on most cards.
- Some TD cards earn higher cash back in specific categories like groceries, gas, or dining, while others earn a single flat rate on all purchases.
- You must be a TD customer to open most TD-branded credit cards, though some cards are available to non-customers through a separate process process.
How cash back accumulates on your TD card
Cash back earns at the rate printed on your card's disclosure document — typically 1%, 1.5%, 2%, or 3% depending on the card and the type of purchase. If your card earns 2% cash back on all purchases, you earn $2 for every $100 you spend. If it earns 2% in a specific category and 1% on everything else, you earn at the higher rate only on those may have access to purchases.
The cash back posts to your account monthly or quarterly, depending on the card. You can see your running cash back balance in your online account or by calling the number on the back of your card. There is no cap on how much cash back you can earn on most TD cards, though some cards may have limits on how much you can earn in bonus categories during a calendar year.
Ways to use your TD cash back
Once your cash back has posted, you can redeem it in several ways. The most common method is to explore it as a statement credit, which reduces your next bill. You can usually do this through your online account or by calling customer service.
You can also request a direct deposit of your cash back to any bank account you own, or ask TD to send you a check. Some cards allow you to use cash back to pay down your card balance, which works the same way as a statement credit. Check your card's terms or log into your account to see which redemption methods are available for your specific card.
Cash back categories and earning rates
TD offers several cash back cards, and each one has a different earning structure. Some cards earn a flat rate on all purchases — for example, 1.5% cash back on everything. Other cards earn higher rates in specific categories and a lower rate on other purchases.
Common bonus categories include groceries, gas stations, restaurants, and drugstores. A card might earn 3% cash back on groceries and gas, 2% on restaurants and drugstores, and 1% on all other purchases. The exact categories and rates vary by card, so check the terms document or the card's product page on TD's website to see which card matches your spending habits.
Annual fees and other card costs
Some TD cash back cards charge an annual fee, while others do not. Cards with no annual fee typically earn a lower cash back rate — often 1% or 1.5% on all purchases. Cards with an annual fee (usually $95 to $150) often earn higher rates, such as 2% or 3% in bonus categories.
Whether a card with an annual fee makes sense depends on how much you spend in the bonus categories. If you spend $10,000 a year on groceries and gas and earn 3% cash back, you earn $300 — enough to cover a $95 annual fee and come out ahead. If you spend less or mostly in categories that earn 1%, the annual fee may not be worth it. Calculate your expected cash back against the fee before you decide.
How to redeem your cash back
To redeem your cash back, log into your TD online account and look for the rewards or cash back section. You should see your current balance and the option to redeem. Select your preferred method — statement credit, bank deposit, or check — and follow the prompts.
If you prefer to redeem by phone, call the number on the back of your card and ask to redeem your cash back. A representative can process your request and tell you when the credit or deposit will appear. Most redemptions post within one to three business days, though checks may take longer to arrive.
Frequently Asked Questions
Do I lose my cash back if I close my TD credit card?
Cash back that has already posted to your account is yours to keep and redeem. However, cash back that has not yet posted may be forfeited when you close the card. Check your account to see your current balance and redeem any pending cash back before you close the card.
Can I combine cash back from multiple TD cards?
Yes. If you hold more than one TD credit card, your cash back balances are separate for each card, but you can redeem each one independently. You cannot combine balances into a single redemption, but you can redeem each card's cash back to the same bank account or statement.
Does cash back count as income for taxes?
No. Cash back on credit card purchases is treated as a discount on what you spent, not as taxable income. You do not report it to the IRS or include it on your tax return.
What happens to my cash back if I return a purchase?
When you return an item, the cash back you earned on that purchase is reversed. If you earned $3 in cash back on a $100 purchase and return it, that $3 is removed from your cash back balance.
Is there a minimum cash back amount I have to earn before I can redeem?
Most TD cash back cards have no minimum redemption amount. You can redeem $1 or $100 whenever you want. Check your card's terms to confirm, as some cards may have a small minimum like $25.