CHERRY HILL, N.J., March 22, 2021 /PRNewswire/ -- 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.
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SOURCE TD Bank