for instance if i had 5 free tp and 160 regular tp in the bank(founders pack 3) and used it for something like an extra character slot, would it first deduct the free tp and then regular tp or just from regular tp by itself?
same goes for the tp store btw… like if i bought something for 10 tp, it would deduct the free tp first, correct?
i’m mostly wondering about character slots though.
You are correct, it deducts from free TP first in all scenarios. Unfortunately, with the limit of 5 but yea
that’s great to know.
sure, 5 is 5 but it accumulates over time with many purchases =D
Yes, it kind forces you to buy some addtional tp but surely this 5 free points helps in the long run. 
That 5 TP, which can upgraded to 8 via guild wars soon, is actually huge. It basically means you never have to pay for a microphone. I have purchased over 60 of them in game without using any of my founder TP. It also allows you to buy soul crystals, and if you’re on the server with 8 free TP, even an enchant scroll every couple of days.