Texas is home to many banks and credit unions, making it quite challenging to identify the best CD rates. Furthermore, each CD account has its advantages and disadvantages.
Some accounts offer higher yields for short-term investments, while others perform better in the long run. Certain accounts have attractive rates but limited terms, while others have multiple terms suitable for CD laddering but lower rates. Moreover, there are differences in terms of minimum deposit requirements and early withdrawal fees.
This article presents a concise summary of some of the most rewarding CD accounts available in Texas in terms of CD rates. However, we have also encountered additional factors contributing to the overall evaluation, including the account terms, minimum deposit requirements, and options for early withdrawal.
Air Force Federal Credit Union
APY Range
Minimum Deposit
Terms
Fees
Air Force Federal Credit Union (AFFCU) operates six branches across Texas and offers competitive certificate rates compared to other credit unions and banks. In fact, their rates are frequently ranked among the highest in the entire country.
To open a certificate account, a minimum deposit of $1,000 is required. However, if you deposit $100,000 or more, you'll be eligible for the highest available interest rate.
Term | APY |
|---|---|
6 Months | 4.65% |
12 Months | 4.80% – 4.85% |
18 Months | 5.05% |
24 Months | 4.30% |
36 Months | 4.10% |
60 Months | 3.80% – 3.85% |
72 Months | 3.70% – 3.75% |
AFFCU primarily serves military personnel and their families. To be eligible for membership, you must be a current or retired member of the U.S. military, a civilian employee of the Department of Defense, an immediate family member of an existing AFFCU member, or someone who donates $10 or $25 to specific foundations.
Randolph-Brooks Federal Credit Union
APY Range
Minimum Deposit
Terms
Fees
With an extensive network of over 30 branches in Texas, Randolph Brooks Federal Credit Union (RBFCU) presents individuals with the opportunity to invest in certificates with a wide range of annual terms, spanning from one year to seven years. To open an RBFCU certificate, regardless of the chosen term, a minimum deposit of $1,000 is required.
The interest earned on your deposit is compounded on a monthly basis and can be credited to your certificate account. Alternatively, you have the option to receive the dividends in your RBFCU savings, checking, or money market account.
CD Term | APY | Early Withdrawal Penalty |
|---|---|---|
12 Months | 4.60% – 4.80% | 60 days of interest |
18 Months | 4.50% – 4.70% | 60 days of interest |
24 Months | 4.21% – 4.51% | 120 days of interest |
36 Months | 4.06% – 4.26% | 180 days of interest |
48 Months | 3.66% – 3.86% | 240 days of interest |
60 Months | 3.61% – 3.82% | 300 days of interest |
72 Months | 3.40% – 3.61% | 360 days of interest |
84 Months | 3.31% – 3.50% | 420 days of interest |
Randolph Brooks Federal Credit Union is recognized as one of the largest credit unions in Texas. To become a member of RBFCU, you must meet the eligibility criteria. Fortunately, there are several avenues through which you can fulfill the requirements for membership.
Citibank
APY Range
Minimum Deposit
Terms
Fees
Citibank's CDs can be a favorable choice for Texas individuals wishing to deposit their funds in a conventional banking institution. Citibank, one of the prominent financial institutions in the United States, offers a diverse assortment of CDs that cater to various preferences.
However, customers are advised to exercise selectiveness as not all CD terms offer competitive interest rates. Exploring the special terms available and consulting with a banking representative regarding the current opportunities is recommended.
Additionally, being a traditional bank, Citibank allows for rate negotiation for customers with substantial deposits.
CD Term | APY | Early Withdrawal Penalty |
|---|---|---|
3 Months | 0.05% | 90 days interest |
6 Months | 4.65% | 90 days interest |
9 Months | 3.75% | 90 days interest |
12 Months | 2.00% – 3.00% | 90 days interest |
12 Months – No Penalty | 0.05% | / |
18 Months | 3.75%
| 180 days interest |
24 Months | 2.00% | 180 days interest |
30 Months | 0.10% | 180 days interest |
36 Months | 2.00% | 180 days interest |
48 Months | 2.00% | 180 days interest |
60 Months | 2.00% | 180 days interest |
Regarding early withdrawal penalties, Citibank adheres to reasonable policies, especially for long-term CDs. Citi also provide both fixed-rate CDs and no-penalty CDs, a feature uncommon among traditional banks.
Capital One
APY Range
Minimum Deposit
Terms
Fees
Capital One 360 offers a diverse range of CDs with durations that span from 6 – 60 months. Residents of Texas can benefit from the competitive interest rates provided for all durations, making Capital One a highly suitable choice for employing CD laddering techniques.
Furthermore, you can choose the frequency at which your CD interest is paid out, be it on a monthly, annual, or end-of-term basis.
CD Term | APY | Early Withdrawal Penalty |
|---|---|---|
6 Months | 4.25% | 3 months interest |
9 Months | 4.25% | 3 months interest |
12 Months | 5.00% | 3 months interest |
18 Months | 4.45%
| 6 months interest |
24 Months | 4.00% | 6 months interest |
30 Months | 4.00% | 6 months interest |
36 Months | 4.00% | 6 months interest |
48 Months | 3.95% | 6 months interest |
60 Months | 3.90% | 6 months interest |
Capital One sets a comparably modest penalty for early withdrawals from your CD, distinguishing itself from other banking institutions.
Capital One, a renowned credit card issuer, has broadened its range of services to encompass online banking and the establishment of Capital One Cafés. Presently, it stands as one of the leading online banks nationwide.
American Express National Bank
APY Range
Minimum Deposit
Terms
Fees
American Express is widely recognized as one of the most stable, reputable, and well-established banking institutions in the United States. They provide competitive interest rates on specific terms without requiring a minimum deposit, and they offer the option for anyone, including non-Amex customers, to open an account.
Nevertheless, American Express may not be optimal if you intend to engage in CD laddering. The discrepancies in interest rates among various CD terms are substantial, and you might discover higher rates on a limited range of terms compared to what other banks provide.
CD Term | APY | Early Withdrawal Penalty |
|---|---|---|
12 Months | 4.35% | 270 days interest |
18 Months | 3.25%
| 270 days interest |
24 Months | 4.00% | 270 days interest |
36 Months | 3.00% | 270 days interest |
48 Months | 3.00% | 365 days interest |
60 Months | 3.00% | 540 days interest |
Lastly, American Express early withdrawal penalties are quite high compared to other CD accounts.
Sallie Mae
APY Range
Minimum Deposit
Terms
Fees
Sallie Mae emerges as a highly favorable option for customers residing in Texas, boasting highly competitive interest rates and a wide selection of term choices. As a result, it proves to be an ideal solution for individuals searching for an online banking facility.
All certificate of deposit (CD) accounts necessitate an initial deposit of at least $2,500 at the time of opening. Furthermore, your account will accrue interest on a monthly, quarterly, annual, or maturity basis. Additionally, you have the option to transfer the accumulated interest to a linked bank account during these intervals. Compared to its competitors, Sallie Mae offers lower penalties for early withdrawals.
CD Term | APY | Early Withdrawal Penalty |
|---|---|---|
6 Months | 4.80% | 90 days of interest |
9 Months | 4.85% | 90 days of interest |
12 Months | 5.15% | 90 days of interest |
18 Months | 4.75% | 180 days of interest |
24 Months | 4.50% | 180 days of interest |
30 Months | 4.30% | 180 days of interest |
36 Months | 4.25% | 180 days of interest |
60 Months | 4.00% | 180 days of interest |
Sallie Mae Bank operates under the umbrella of the SLM Corporation, a renowned provider of federal student loan services. With a primary focus on online banking services, Sallie Mae extends a variety of savings options to its customers, including savings accounts, CD accounts, and a money market account.
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No Penalty CDs In Texas
It's tough to find a no-penalty option in Texas, but this isn't just a problem in Texas. Unfortunately, only a few banks and credit unions like CIT Bank, Synchrony Bank, and Citi offer no-penalty CDs. Usually, the interest rates are lower than regular CDs.
If you're looking for a no-penalty option in Texas, you might want to check out savings accounts instead. They give you the flexibility to withdraw money whenever you need it, and they're very popular, available at almost any bank or credit union in Texas. And in many cases, they even offer higher interest rates than no-penalty CDs.
Can I Find Better CD Rates In Texas
Yes, it's possible to find better rates for specific terms at other banks and credit unions in Texas. It's always a good idea to compare and check as rates can change frequently. Banks and credit unions often adjust their rates and even offer promotions for certain terms.
The list above considers not only the best CD rates in Texas but also additional factors like minimum deposit, early withdrawal fees, and convenience.
The selected banks and credit unions cater to different types of customers in Texas, including individuals building their emergency fund, families saving for a down payment, those who prefer traditional banks, those who prefer credit unions, and even those who prefer online banking. We've got you covered with competitive rates and favorable CD conditions.
CD APY Range | Minimum Deposit | |
|---|---|---|
3.90% – 5.15% | $500 | |
0.10% – 4.85% | $0 | |
5.15% | $1 | |
4.30% – 5.05% | $500 | |
2.00% – 4.35% | $1,000 | |
5.10% – 4.98% | $1,000 | |
4.25% – 4.75% | $1,500 | |
3.00% – 4.75% | $1,000 | |
2.00% – 5.10% | $2,500 | |
0.30% – 3.50% | $1,000 | |
3.00% – 4.85% | $0 | |
3.51% – 4.85% | $5,000 | |
4.20 – 5.25% | $25,000 | |
4.20% – 5.30% | $1,000 | |
5.30% – 4.90% | $1,000 | |
4.45% – 5.25% | $1,000 | |
0.05% – 4.50% | $1,000 | |
4.24%- 4.75% | $2,500 | |
UP TO 5.15 % | $0 | |
2.75% – 5.25% | $1,000 | |
1.00% – 5.00% | $250 | |
4.85% | $1,000 | |
4.00% – 5.20% | $2,500 | |
0.05% – 5.00% | $1,000 | |
0.10% – 0.40% | $500 | |
3.90% – 5.05% | $1,000
|
Compare CD Accounts Side By Side
Best CD Rates In Texas: Research Methodology
The Smart Investor team extensively researched to identify the best CD rates in Texas. We assessed them based on four main categories:
- Interest Rates and Terms (50%): We examined the interest rates offered by CD accounts in Texas and any accompanying terms, such as the duration of the CD term, early withdrawal fees and minimum deposit requirements. CD accounts with higher interest rates and more favorable terms received higher ratings in this category.
- Account Features (20%): This category evaluated additional features offered by CD accounts, such as the option for automatic renewal at maturity, flexibility in terms of interest payout frequency (e.g., monthly, quarterly, or at maturity), and any special promotions or bonuses. CD accounts with extra features and flexibility earned higher scores.
- Customer Experience (20%): We analyzed the ease of opening a CD account, communication with customer service representatives, the usability of online banking platforms (tested by our team), and the availability of support channels. CD accounts offered by banks with user-friendly interfaces, responsive customer support, and efficient digital banking tools received higher ratings.
- Bank Reputation (10%): Our team scrutinized each bank's reputation based on factors such as customer satisfaction ratings, JD Power scores, TrustPilot reviews, and the bank's Better Business Bureau (BBB) profile. Banks with positive reputations and minimal customer complaints regarding CD account services received higher ratings.
We assigned weights to various features and qualities within each category to ensure a comprehensive evaluation of each CD account's offerings. Our ratings were based on a combination of these factors to assist consumers in selecting the best CD account in Texas to meet their financial needs.
