Overview
The TD Low Rate Visa Card is built for one purpose: saving money on interest. With a fixed annual rate of just 12.90% on both purchases and cash advances, it's one of the lowest-rate credit cards available in Canada — roughly 8 percentage points less than standard credit cards charging 20.99%.
This isn't a rewards card. There are no points, no cash back, no travel perks. Instead, the value proposition is straightforward: if you carry a balance or need to finance a larger purchase, you'll pay significantly less interest than you would with a typical credit card.
Special Offer
TD is currently offering a 0% promotional interest rate on purchases for the first 6 months from account opening. This makes the card especially compelling if you have a planned large purchase — you'll pay zero interest for half a year, then the already-low 12.90% rate kicks in.
Interest Rate Breakdown
| Type | Rate |
|---|---|
| Purchases | 12.90% |
| Cash Advances | 12.90% |
| Promotional Rate (Purchases) | 0% for 6 months |
The standout here is that cash advances carry the same 12.90% rate as purchases — most credit cards charge 22–23% on cash advances. If you ever need to withdraw cash from your credit card, this card is far cheaper than the competition.
Who Should Consider a Low-Rate Card?
A low-rate card makes financial sense if you:
- Carry a balance month-to-month — Paying 12.90% instead of 20.99% on a $3,000 balance saves roughly $243/year in interest
- Need to finance a large unexpected expense — car repairs, medical bills, home repairs
- Want to consolidate higher-interest debt — transfer balances from standard-rate cards
- Prefer predictability — the same rate for purchases and cash advances, no surprises
Interest Savings Example
On a $5,000 carried balance:
| Card Type | Annual Interest Rate | Annual Interest Cost |
|---|---|---|
| Standard credit card | 20.99% | ~$1,050 |
| TD Low Rate Visa | 12.90% | ~$645 |
| Savings | ~$405/year |
Benefits & Features
While this card doesn't offer rewards, it does include:
- $0 additional cardholders — Add family members at no extra cost
- Digital wallet support — Apple Pay, Google Pay, Samsung Pay
- Starbucks perk — Earn 50% more Stars at participating Starbucks stores when you link your card
- TD Offers — Exclusive perks from TD and participating merchants
Optional Insurance
Unlike travel reward cards that include insurance, the TD Low Rate Visa lets you purchase coverage separately:
- Travel Medical Insurance — Available as an optional add-on
- Trip Cancellation/Trip Interruption Insurance — Available as an optional add-on
This opt-in model means you only pay for insurance if you actually need it.
TD Low-Rate vs. Standard Card Comparison
| Feature | TD Low Rate Visa ($25) | Typical Rewards Card |
|---|---|---|
| Purchase interest rate | 12.90% | 20.99% |
| Cash advance rate | 12.90% | 22.99% |
| Rewards | ||
| Welcome bonus | ||
| Travel insurance | Optional (purchase) | Often included |
| Annual fee | $25 | $0–$139+ |
| Best for | Carrying a balance | Paying in full monthly |
Drawbacks to Consider
$25 Annual Fee
Unlike some no-fee low-rate cards, the TD Low Rate Visa charges $25/year. However, if you carry any balance, the interest savings far outweigh this fee.
No Rewards
This card earns zero points, zero cash back, and zero travel rewards. If you pay your balance in full every month, a rewards card is a better choice — low interest rates only matter when you carry a balance.
2.5% Foreign Transaction Fee
Like most Canadian credit cards, you'll pay 2.5% on non-CAD purchases. Not ideal for travel spending.
No Included Insurance
Travel insurance, purchase protection, and extended warranty are not included. You'll need to purchase travel insurance separately or carry another card for coverage.
Who Is This Card Best For?
This card is an excellent choice if you:
- Carry a balance and want to minimize interest charges
- Need to finance a large purchase and want the lowest possible rate
- Want one consistent low rate for both purchases and cash advances
- Are looking for 0% for 6 months on an upcoming purchase
- Don't need rewards and prefer paying less in interest over earning points
It's not the best choice if you:
- Pay your balance in full every month — get a rewards card instead
- Want to earn points, miles, or cash back
- Need travel insurance included
- Travel internationally frequently (2.5% FX fee)
Bottom Line
The TD Low Rate Visa Card does one thing exceptionally well: it saves you money on interest. At 12.90% for both purchases and cash advances — plus a 0% promotional rate for the first 6 months — it's one of the most affordable ways to carry a balance in Canada. There are no rewards and no perks, but if you're someone who doesn't always pay in full, the interest savings of ~$400/year on a typical balance make this card worth the $25 annual fee many times over.
