Best CD Rates in Texas
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Everything is bigger in Texas, including CD rates. Discover which banks have the best CD rates today.
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Here are some banks and credit unions with the best CD rates in Texas:
- Ponce Bank:
3-Month High-Yield CD - 5.10% APY - Ponce Bank:
4 Month No-Penalty CD - 5.07% APY - The State Exchange Bank:
2-Month High-Yield CD - 5.00% APY - Sallie Mae Bank:
14-Month High-Yield CD - 4.85% APY - Freedom Bank:
6-Month High-Yield CD - 4.85% APY - Sallie Mae Bank:
10-Month High-Yield CD - 4.80% APY - SkyOne Federal Credit Union:
5-Month High-Yield CD - 4.75% APY - Freedom Bank:
12-Month High-Yield CD - 4.75% APY - Ohio State Bank:
9-Month High-Yield CD - 4.70% APY - Blue Federal Credit Union:
7-Month High-Yield CD - 4.60% APY - Veritex Community Bank:
6-Month CD - 5.55% APY - Susser Bank:
3-Month CD - 5.50% APY - Amerant Bank:
6-Month CD - 5.35% APY - Ciera Bank:
6-Month CD - 5.20% APY - Independent Financial:
6-Month CD - 5.15% APY - PlainsCapital Bank:
3-Month CD - 5.04% APY - First Foundation Bank:
9-Month CD - 5.00% APY - North Dallas Bank & Trust:
6-Month CD - 5.00% APY - Texas Capital Bank:
12-Month CD - 5.00% APY - Delta Community Credit Union:
12-Month CD - 4.95% APY
Looking for a CD in proper Cowboy Country?
You might be spoiled for choice. Texas banks and credit unions offer some competitive CD rates with various terms. A CD with a good enough rate can set you with months or years worth of passive income.
Check out the highest CD rates in Texas today.
Best Bank CD rates in Texas
If you prefer getting a CD with a local Texas bank, here are some of the highest CD rates you can consider:
- Veritex Community Bank:
6-Month CD - 5.55% APY - Susser Bank:
3-Month CD - 5.50% APY - Amerant Bank:
6-Month CD - 5.35% APY - Ciera Bank:
6-Month CD - 5.20% APY - Independent Financial:
6-Month CD - 5.15% APY - PlainsCapital Bank:
3-Month CD - 5.04% APY - First Foundation Bank:
9-Month CD - 5.00% APY - North Dallas Bank & Trust:
6-Month CD - 5.00% APY - Texas Capital Bank:
12-Month CD - 5.00% APY - Bank of America:
7-Month CD - 4.80% APY
Best Credit Union CD rates in Texas
Credit unions can offer very competitive rates and other perks to their members. Check out these credit unions in Texas with impressive CD rates:
- Delta Community Credit Union:
12-Month CD - 4.95% APY - Randolph-Brooks Federal Credit Union:
18-Month CD - 4.75% APY - Credit Human Federal Credit Union:
18-Month CD - 4.70% APY - University Federal Credit Union:
24-Month CD - 4.50% APY - ALLIANCE Credit Union:
15-Month CD - 4.50% APY - Neighborhood Credit Union:
12-Month CD - 4.40% APY - Pentagon Federal Credit Union:
1-Year CD - 4.00% APY
Best Online CD rates in Texas
Online banks are typically available to residents nationwide regardless of where you live. Here are the top online CDs available:
- Sallie Mae Bank:
13-Month CD - 5.20% APY - Synchrony Bank:
9-Month CD - 5.15% APY - Bread Savings:
1-Year CD - 5.15% APY - First Internet Bank:
12-Month CD - 5.15% APY - Marcus:
6-Month High-Yield CD - 5.10% APY - Quontic:
CD Rates - Up to 5.10% APY - Bask Bank:
6-Month CD - 5.10% APY - Discover Bank:
9 Month CD - 5.10% APY - My eBanc:
6-Month CD - 5.05% APY - Popular Direct:
Certificate of Deposit - Up to 5.05% APY
Best National Bank CD rates in Texas
If you're looking for a reputable large national bank, some offer decent CD rates from time to time. Check out these special rates for Texas residents:
- America First Credit Union:
3-Month CD - 5.25% APY - Huntington:
5-Month CD - 5.13% APY - Charles Schwab Bank:
3-Month CD - Up to 5.04% APY - Santander Bank:
6-Month CD - 5.00% APY - TD Bank:
6-Month CD - 5.00% APY (Relationship) - Citizens Bank:
8-Month CD - 5.00% APY - Webster Bank:
6-Month CD - 4.90% APY - Bank of America:
7-Month CD - 4.80% APY - BMO Alto 6-Month CD:
4.80% APY - Navy Federal Credit Union:
12-Month EasyStart Certificate - 4.75% APY
Best CD Rates in Texas by Term
Looking to open a CD with a specific term? Here are some of the highest CD rates in Texas by CD term:
Best 3-month CDs in Texas:
- Susser Bank:
3-Month CD - 5.50% APY - Ciera Bank:
3-Month CD - 5.15% APY - PlainsCapital Bank:
3-Month CD - 5.04% APY - Texas Capital Bank:
3-Month CD - 4.60% APY - Frost Bank:
3-Month CD - 4.55% APY
Best 6-month CDs in Texas:
- Veritex Community Bank:
6-Month CD - 5.55% APY - Susser Bank:
6-Month CD - 5.40% APY - Amerant Bank:
6-Month CD - 5.35% APY - Ciera Bank:
6-Month CD - 5.20% APY - Independent Financial:
6-Month CD - 5.15% APY
Best 1-year CDs in Texas:
- Susser Bank:
12-Month CD - 5.20% APY - Texas Capital Bank:
12-Month CD - 5.00% APY - Veritex Community Bank:
12-Month CD - 5.00% APY - Delta Community Credit Union:
12-Month CD - 4.95% APY - First Foundation Bank:
12-Month CD - 4.85% APY
Best 2-year CDs in Texas:
- North Dallas Bank & Trust:
24-Month CD - 4.75% APY - University Federal Credit Union:
24-Month CD - 4.50% APY - Susser Bank:
24-Month CD - 4.50% APY - Credit Human Federal Credit Union:
24-Month CD - 4.45% APY - Ciera Bank:
24-Month CD - 4.40% APY
Best 5-year CDs in Texas:
- Credit Human Federal Credit Union:
60-Month CD - 4.00% APY - Amerant Bank:
60-Month CD - 4.00% APY - Delta Community Credit Union:
60-Month CD - 3.85% APY - Susser Bank:
60-Month CD - 3.75% APY - Credit Union of Texas:
60-Month CD - 3.70% APY
What Is a CD?
A certificate of deposit (CD) is a savings account where you deposit a fixed amount for a fixed number of months or years. In exchange, you earn a fixed APY that applies for the entire term.
The APY on a CD is often higher than what you get on a regular savings account. However, you can't withdraw your money until the CD matures. The lock-in period is why banks can offer you high rates. You lose convenient access to your money in exchange.
If you withdraw early, be ready to pay early withdrawal penalties. It can range anywhere from 3 months to 1 year's interest, depending on the term.
Usually, no. CDs are risk-free investments. Your deposits are federally insured up to $250,000 for banks or credit unions that are FDIC or NCUA members. But, you can lose some of your money to penalties if you withdraw early enough.
How Much Interest Does a CD Earn?
Let's say you deposit $10,000 in a 1-year CD with a 5% APY. After a year, you'd earn $500. How much you earn on a CD depends on the term, APY, and the amount in your CD.
In general, the longer the term, the higher the APY, and the bigger the amount, the higher your interest earnings will be.
Here's a simple CD calculator to see how much your CD can earn:
No, you don't have to pay state taxes on your CD interest earnings in Texas. But, you still might need to pay federal income taxes on your CD.[1][2]
Where to Find the Best CDs in Texas?
If you're strictly looking at offers in Texas, check out CD specials from community banks and credit unions. They may offer promotional CDs for a limited time, sometimes with specific opening criteria, but they usually come with good rates.
National banks may also offer CD specials that vary by location. There also may be some requirements to qualify.
Online banks typically give high CD rates too. Plus, the region is not restricted, so you can easily open a CD with them.
One of the highest CD rates in Texas is Veritex Community Bank:
Pros and Cons of a CD
Pros:
- Fixed rate for a fixed term
- Usually offers higher APY than regular savings
- Keep earning at the same APY even if the interest rate drops
- Federally insured up to $250,000 by the FDIC or the NCUA
Cons:
- Can't withdraw until the CD matures
- Early withdrawal penalties can be costly
- Some restrictions like membership and minimum deposit
- Miss out on better APY and investments due to the fixed term
If you can park your money for months or years, a CD is a good option to lock in high rates. But if you need easy access to your money, liquid accounts like a savings account might be a better choice.
Should I Get a CD?
Whether or not you get a CD depends on your goals. CDs are safe investments if you need to save money for the short term and want to lock in a good interest rate.
The big question is: can you afford to lose access to your funds for months or years? Remember that you usually can't withdraw your CD until it matures.
If you think you might need the money, you can opt for more liquid and convenient accounts instead. For example, many high-yield savings accounts offer a competitive APY and may be good alternatives.
- Western Alliance Bank:
High-Yield Savings Premier - 5.31% APY - Discover® Online Savings:
$200 Cash Bonus - CIT Bank Platinum Savings:
4.85% APY - CloudBank 24/7:
High Yield Savings Account - 5.19% APY - FVCbank:
High-Yield Savings Account - 5.19% APY
How to Choose the Best CD Rates in Texas?
When you're hunting for a CD in Texas, ask these questions:
How long is the term?
You want a CD term that fits your financial goals. Some banks or credit unions may offer more term options in-branch. If you can, inquire with a branch near you.
What is the APY?
Get the highest APY to maximize your earnings on a CD. Ask your local bank or credit union if they have CD specials in Texas.
Are there any requirements or restrictions?
Some CDs may only be available for residents in a certain county. Or some offers may be available to new customers only. Be sure to ask before you open an account.
What is the minimum deposit required?
The CD may have a minimum deposit. If you can't commit to or meet the requirement, look for CDs with little to no deposit requirements.
Most CDs will have early withdrawal penalties. So if you need to close your CD before it matures, be prepared to pay the penalties. Or if you're not sure if you can commit, find no penalty CDs to avoid paying any fees.
What Are the Types of CDs Available?
Here's a list of different types of CDs that may be available in Texas:
- Term CD: Standard CDs with a fixed rate for a fixed term
- No-Penalty CD: Allows you to withdraw money early without any penalties
- Jumbo CD: Requires large deposits (usually $100k+)
- IRA CD: Offers tax advantages for retirement savings
- Bump-Up CD: Increase your rate during your CD term
- Add-On CD: Add more deposits during your CD term
- State Bank of Texas 12-Month Jumbo CD:
5.05% APY
Bottom Line
Texas has more than just a lone star among its CD offerings. You can take your pick between a good number of banks and credit unions.
But some CDs may have certain restrictions for you to open.
To avoid the trouble, try online banks offering high-yield CDs. They typically won't have strict requirements to open a CD.
References
- ^ Tax Foundation. State Individual Income Tax Rates and Brackets, 2024, Retrieved 05/15/2024
- ^ IRS. Topic no. 403, Interest received, Retrieved 05/15/2024
Rue Atanacio is a research analyst at CreditDonkey, a bank comparison and reviews website. Write to Rue Atanacio at rue.atanacio@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.
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