Low-interest credit cards from TD can save you money in interest charges when you carry a balance.
Instead of the average 20% annual percentage rate (APR) you pay on purchases for regular credit cards, a low-interest credit card charges less interest, potentially resulting in hundreds of dollars worth of savings annually.
Read on to learn about TD low-interest-rate credit cards and your alternatives in 2023.
TD Low-Interest Credit Cards
The main TD low-interest rate credit card is the TD Emerald Flex Rate Visa Card.
TD also offers two low-interest rate cards for businesses:
- TD Business Select Rate Visa Card
- TD Aeroplan Visa Business Card
TD Emerald Flex Rate Visa Card
- Annual fee: $25
- Interest rate: TD Prime + 4.50% to 12.75% on purchases and cash advances.
The TD Emerald Flex Rate Visa Card offers a variable rate that fluctuates with the prime rate.
Depending on your credit rating, you could be approved for a low-interest credit card with a rate of TD Prime + 4.50% (or + 6.25%, 8.75%, 10.25%, 11.75%, or 12.75%).
Assuming you qualify at the best lowest rate, you’d pay 11.20% (i.e. 6.70% TD Prime + 4.50%) based on the rates as of this writing in March 2023.
This credit card lacks cash back rewards but comes with purchase security and extended warranty protection insurance benefits.
Related: Best TD Secured Credit Cards.
Best Low-Interest Rate Credit Cards in Canada
There are many other low-interest credit cards you can choose from if you are looking for competitive rates. Banks like RBC and Scotiabank offer them, or you can opt for the low-rate offerings from HSBC and National Bank:
HSBC +Rewards Mastercard
Best for low-interest rates
Annual fee: $25
Welcome offer: Earn 35,000 points when you spend $2,000 within 180 days of account opening ($175 travel value).
Rewards: Earn up to 2 points per dollar on eligible purchases.
Interest rates: 11.9% on both purchases and cash advances.
Minimum income requirement: None
Recommended credit score:
Good
On HSBC’s website
The HSBC +Rewards Mastercard tops my list of alternatives to TD low-interest rate credit cards.
With a fixed interest rate of 11.9% on purchases and cash advances, you won’t need to worry about fluctuations in your interest fees in the short term.
This card waives the $25 annual fee for the primary cardholder in the first year and pays a significant welcome bonus.
It also includes standard purchase protection insurance, and you earn HSBC Rewards points on all purchases. Learn more in this detailed review.
National Bank Syncro Mastercard
Best National bank credit card for low interest
Annual fee: $35
Rewards: Low-interest credit card.
Interest rates: 4% + prime rate for purchases (minimum of 10.7%), 8% + prime rate for cash advances (minimum of 14.7%).
Minimum income requirement: None
Recommended credit score:
Very Good
On National Bank’s website
Like the TD Emerald Flex Rate Visa, the Syncro Mastercard has a low-interest rate that fluctuates with the bank’s prime rate.
For purchases, the APR is 4% + Prime, and it is 8% + Prime for cash advances.
To qualify for the Syncro Mastercard, you must be a resident of Canada and be the age of majority in your province or territory of residence.
Scotiabank Value Visa Card
Best for low-interest rates
Annual fee: $29
Welcome offer: No annual fee for the first year and 0% interest rate for cash advances for the first 6 months.
Interest rates: 12.99% for purchases and cash advances.
Minimum income requirement: N/A
Recommended credit score:
Good
On Scotiabank’s website
The Scotiabank Value Visa is one of the most competitive low-interest rate cards from a big bank.
It offers a 12.99% fixed interest rate on purchases, cash advances, and balance transfers.
The $29 annual fee is waived in the first year, and cardholders can save up to 25% off car rentals at participating AVIS and Budget locations.
An extra perk of this card is the 0% introductory rate on balance transfers for the first six (6) months.
Methodology:
The Savvy New Canadians team assesses the best low interest credit cards based on their annual fees, interest rates, welcome bonuses, rewards, insurance coverage, and other perks. We carefully evaluate each credit card and place more weight on its long-term value. Only credit cards we would personally use are recommended. While these credit cards are some of the best on the market, they may not be right for you. Visit the credit card issuer’s website using the links to confirm each product’s terms and conditions before applying.
Low Interest vs. Regular Credit Cards
Regular credit cards in Canada charge interest rates ranging between 19.99% and 22.99% for purchases. In contrast, low-interest cards can be as low as 8.99%.
If you carry a credit card balance from month to month, a low-interest credit card will save you money.
Some low-rate cards also offer a promotional balance transfer rate for 6-12 months which can further help you save on interest charges.
How Does a Low-Interest Credit Card Save You Money?
Let’s say you owe $2,500 on your credit card and plan on paying $150 monthly to offset your balance.
When using a regular credit card with 19.99% interest, it takes 20 months to clear your balance and $452.86 in interest costs.
Alternatively, with a low-interest rate card that charges 11.9%, your debt is paid off earlier in 19 months, and you pay $246.14 in interest costs.
| Regular Credit Card | Low-Interest Credit Card | |
| Interest rate | 19.99% | 11.9% |
| Months to pay off balance | 20 months | 19 months |
| Interest charges | $453 | $246 |
How To Reduce Credit Card Interest
To lower your interest costs, plan to pay off your credit card balance in full each month before the due date.
You can also reduce interest fees by:
- Using a low interest-rate credit card.
- Making more than the minimum payment.
- Paying off high-interest cards first, i.e. use the debt avalanche debt repayment strategy.
- Applying for a card that offers 0% or low balance transfer rates for 6-12 months.
Frequently Asked Questions
The HSBC +Rewards Mastercard is one of Canada’s lowest rate credit cards. It charges 11.9% APR on purchases, cash advances, and balance transfers.
The interest charged by TD credit cards range between 11.20% to 22.99%.
You can avoid TD interest charges by paying your credit card balance in full monthly during the grace period.
Related:
