Cherry Hill, N.J., March 22, 2021 – TD Bank, America’s Most Convenient Bank®, today announced the launch of the TD Double Up credit card, featuring a valuable 2% cash back rewards program. Double Up credit card holders can earn 1% cash back on purchases, regardless of category, and an additional 1% cash back when rewards are redeemed into an eligible TD deposit account.
TD’s new card offering comes amid shifts in consumer spending habits in response to COVID-19, with research confirming that savvy spenders are charging more on their credit cards in an effort to optimize reward programs. According to TD Bank's annual Consumer Spending Index, which gauges shifts in spending behaviors and credit usage of Americans, nearly half of all respondents (49%) view rewards in the form of cash back or points as the most valuable credit card benefit.
“It's clear that maximizing credit card rewards is a priority for consumers today," said Paramita Pal, Head of U.S. Bankcard at TD Bank. "With the Double Up credit card, TD aims to provide our customers with a very competitive earn rate and the ability to build rewards on various purchases."
The Double Up credit card has no annual fee as well as no limit, caps or expiration dates when redeeming rewards. New Double Up card customers will receive a $75 statement credit when they spend $500 in the first 90 days.
Small charges can add up to big rewards
COVID-19 has led many consumers to re-evaluate how they spend and approach credit card usage. About a quarter (23%) of card holders said they're spending more on their credit cards now, the primary reason being to earn rewards. Nearly half (48%) of respondents said their credit card is their primary method for making day-to-day purchases – and those purchases can add up to big rewards.
“According to the survey, the average American spends about $800 on their credit card each month," said Pal. "For a customer earning a combined 2% back when they spend and redeem into their TD account, this equates to nearly $200 each year in rewards. Cash back rewards allow consumers to use this additional money how they want or need to, whether it's splurging on a nice meal out, covering a utility bill or adding to savings."
Wheels down
With rewards in the forefront, Americans in greater numbers are finding financial products that best match their spending habits. Nearly one in five consumers (17%) applied for a new credit card during the pandemic. And within this segment, more than a third (39%) did so because they wanted a different rewards program as spending habits shifted.
Millennials are particularly focused on maximizing their rewards. Sixty-two percent of those with a travel rewards card said they changed or wanted to change their rewards program with travel curtailed during the pandemic. Of those, 37% thought they would be better served with cash back rather than miles or travel points.
The money's in the bank
Many consumers surveyed recognized the benefits of a banking relationship when selecting a credit card. In fact, 60% of survey respondents said it is at least 'somewhat important' to have a credit card with their primary bank. Thirty-six percent of this group said it was because they earn higher rewards or benefits thanks to that relationship, and 42% responded it's because they find it easier.
Additionally, more than a third of rewards card holders (36%) said they prefer to redeem their rewards as a check or cash, or via direct deposit into their linked checking account. TD Double Up credit card customers can seamlessly redeem their rewards by direct deposit into their eligible account, making it easy to secure double cash back.
"Customers with a TD deposit account get 'double' the cash back rewards, as the card name implies. When developing the card, we considered what today's customer appreciates – value, convenience, simplicity. Double Up satisfies all three of those areas, especially with our new digital experience." said Pal. "And it was important to extend this value proposition to small business customers looking for a valuable credit card as well, so our Business Solutions card has been relaunched to offer the new 2% cash back rewards program."
Methodology
MARU/Matchbox conducted an online survey with 996 respondents in the U.S. and of age 18 and above between Feb. 3 and Feb. 8, 2021.
About MARU/Matchbox
MARU/Matchbox is a professional services firm dedicated to improving its clients' business outcomes. It delivers its services through teams of sector-specific research consultants specializing in the use of Insight Community and Voice of Market technology.
About TD Bank, America's Most Convenient Bank®
TD Bank, America's Most Convenient Bank, is one of the 10 largest banks in the U.S., providing more than 9.5 million customers with a full range of retail, small business and commercial banking products and services at more than 1,220 convenient locations throughout the Northeast, Mid-Atlantic, Metro D.C., the Carolinas and Florida. In addition, TD Bank and its subsidiaries offer customized private banking and wealth management services through TD Wealth®, and vehicle financing and dealer commercial services through TD Auto Finance. TD Bank is headquartered in Cherry Hill, N.J. To learn more, visit www.td.com/us. Find TD Bank on Facebook at www.facebook.com/TDBank and on Twitter at www.twitter.com/TDBank_US and www.twitter.com/TDNews_US.
TD Bank, America's Most Convenient Bank, is a member of TD Bank Group and a subsidiary of The Toronto-Dominion Bank of Toronto, Canada, a top 10 financial services company in North America. The Toronto-Dominion Bank trades on the New York and Toronto stock exchanges under the ticker symbol "TD". To learn more, visit www.td.com/us.