TD Bank launched its TD Payment Plus Credit Card that will reward customers for being more responsible with their credit card debt. TD Bank will return a portion of your interest charges as statement credits if you pay more than just the minimum amount due.

As if debt freedom wasn’t enough of an incentive to pay down your credit card balance faster, TD Bank is paying its Payment Plus Credit Card customers to make larger payments.

The TD Payment Plus Credit Card

TD Bank introduces a credit card with a unique rewards program that doesn’t encourage consumers to spend more to earn more rewards such as cash back, points, or miles. Rather, the TD Payment Plus Credit Card will:

  • Reward a statement credit equal to 25% of your interest charges if you pay 5%-9.99% of that month’s balance.
  • Reward a statement credit equal to 50% of your interest charges if you pay 10% or more toward that month’s balance.

The rewarded statement credit will be applied to the next statement’s balance.

“It’s all about promoting financial fitness and giving customers the choices they need to help them better manage their money,” said Michael Copley, TD Bank Executive Vice President. “TD’s Payment Plus Credit Card empowers consumers to take responsibility for their interest charges and current debt obligations, while rewarding them for doing so.”

The credit card isn’t offering any special 0% introductory APR on purchases but there is a 0% introductory APR on all balance transfers for 6 months. Afterwards, the APR will become the same that for purchases, which is a variable 21.24%. And, there is no annual fee — always a welcomed perk.

Compared to a Low-Interest, Rewards Credit Card

The target consumer base for the TD Payment Plus Credit Card are customers who tend to carry a credit card balance. The card would compete with low-interest credit cards for those same consumers, posing more of a threat if those cards had rewards programs. Whether or not the card is ideal for a specific consumer would depend on that consumer’s financial habits.

The variable APR of 21.24% may seem relatively high compared to the popular Discover More Card’s 11.99%-19.99% APR. But, if you paid at least 10% of your balance on the TD Payment Plus Credit Card, you’d essentially be getting half the stated APR since you’d be getting back half of your interest charges. So, the TD Payment Plus Credit Card is actually a low-interest credit card in disguise — and encourages you to pay down more of your balance.

When Discover More’s rewards program is taken into account, it may sway the decision against TD Bank’s new card. If a consumer can earn substantial rewards, a low-interest, rewards credit card may end being less costly but it will require making more purchases.

The TD Payment Plus Credit Card is optimal for consumers who usually carries a balance and need an incentive to pay down their credit card debt but aren’t necessarily avid shoppers.

Learn more about the TD Payment Plus Credit Card by visiting

To find and compare other credit cards available, visit the credit cards page.

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Simon Zhen

Simon is a research analyst for MyBankTracker. He is an expert on consumer banking products, bank innovations and financial technology.
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