TD Bank Survey Reveals Widespread Impact of Inflation
- 4 out of 5 consumers have had their spending habits impacted by inflation, leading to increased interest in savings and rewards. TD Bank introduced TD FlexPay to provide cardholders with payment flexibility. Consumers are interested in low or no interest credit cards. TD Bank recently released TD Clear, the first credit card in the U.S. market that replaces interest and fees with a monthly fee. Consumers are not fully utilizing their credit card rewards. Digital banking and digital wallets are growing in popularity.
- None.
4 out of 5 consumers' spending habits were impacted by inflation, leading many to seek relief through savings and rewards
The survey polled more than 1,000 Americans to gauge shifts in consumer spending behaviors and credit usage. As inflation continues to impact all Americans, respondents are prioritizing rewards and showing signs of high financial literacy – underscoring the importance of responsible financing during economic instability.
"Consumers are undoubtedly continuing to feel the impact of inflation and rising interest rates," said Chris Fred, Head of Credit Cards and Unsecured Lending at TD. "And it is not surprising that so many consumers are proactively doing their homework, speaking to financial professionals for pointed advice, and seeking strategic ways to offset these rising costs, like identifying more available discounts or cost-effective alternatives."
With rising costs of living, respondents' spending focused on necessities. Groceries were the leading expense for
"As costs rise, people need a little more flexibility," said Fred. "We heard from consumers that they are looking for more breathing room."
In response to this need for flexibility, TD Bank introduced TD FlexPay, which provides cardholders with increased flexibility by giving them the option to schedule a Skip a Payment once a year. Cardholders can schedule a Skip a Payment for a future payment due, subject to eligibility requirements, such as the cardholder may not be delinquent or in default at the time they scheduled the Skip a Payment and the month for which the payment would be skipped. Cardholders can take advantage of the Skip a Payment option starting six months after account opening and will accrue interest during the month for which they skip a payment. In addition, they will automatically have their first late fee refunded every twelve billing cycles.
As interest rates continue to rise, consumers are looking for low and no interest solutions for their credit cards. The vast majority of respondents (
More than
Consumers can find
"TD Bank recently released TD Clear to create an option for credit-cautious consumers," said Fred. "This card replaces interest and other fees with a set monthly fee, to provide a simple and transparent credit card. It's the first of its kind in the U.S. market."
Eighty three percent of consumers know the range of their credit score, and almost
Consumers are passing this credit-savviness down to their children. Respondents with teenage children said
"Adding a teenager as an authorized user on a card is a great way to help them begin building a credit history early," said Fred. "We're seeing many parents start their teenaged kids on credit cards with low limits to start building healthy financial habits and a possible strong credit score young. Credit cards with lower limits and set payment structures, like TD Clear, can be a great option for a card to share with your kids."
Rewards are a key factor for many when choosing a credit card, with more than
Most consumers (
Even though two-thirds of consumers redeem their credit card rewards multiple times a year,
"Our rewards don't expire, so TD cardholders don't have to worry about losing their value," Fred said. For rewards-focused customers, Fred advises consumers look at their own spending and preferences to find the best fit. For instance, TD Double Up offers a flat
The survey also found that respondents are leaning into digital banking and seeking easier and quicker ways to pay bills, spend money, and access support. More than 8 of 10 respondents (
Digital Wallets are also rising in popularity, particularly among younger consumers.
This CARAVAN survey was conducted by Big Village among a sample of 1,005
Big Village is a collaborative and consultative research partner to hundreds of organizations around the globe. They possess a wide variety of resources, tools and technologies to collect and analyze information for our clients. As a member of the Insights Association and ESOMAR (the European Society for Opinion and Marketing Research), Big Village adheres to industry ethics and best practices, including maintaining the anonymity of our respondents. Authorization is required for any publication of the research findings or their implications.
TD Bank, America's Most Convenient Bank, is one of the 10 largest banks in the
TD Bank, America's Most Convenient Bank, is a member of TD Bank Group and a subsidiary of The Toronto-Dominion Bank of
1 The Clear Platinum Visa Credit Card with
View original content to download multimedia:https://www.prnewswire.com/news-releases/td-bank-survey-reveals-widespread-impact-of-inflation-301902409.html
SOURCE TD Bank
FAQ
What is TD FlexPay?
What is TD Clear?
Are consumers fully utilizing their credit card rewards?
What is the growing trend in banking preferences?