Interest rates have been on the rise over the past couple of years, which is great for anyone looking to grow their savings. If you’re willing to keep your money on deposit for a while, you can maximize your earnings by putting your money in a certificate of deposit (CD).
In partnership with Curinos, a top source of banking information and analytics, we’ve analyzed more than 20,000 data points to identify the most competitive CD rates available in Texas. Keep in mind that our assessment of each institution isn't exhaustive and our rankings focus exclusively on the APY.
Best CD rates in Texas overall
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Compare rates from our partners
If you’re looking for the best CD rates in the country, your search doesn’t have to end in Texas. We’ve rounded up the top rates available nationwide from our partners.
Best CD rates in Texas by term
Whether you’re looking for a short-term or long-term CD, you can maximize your earnings by choosing one with a competitive rate. We’ve identified the best CD rates in Texas for 6-month, 1-year, and 5-year terms so you can choose the best CD account for your savings goals.
Any special requirements to open a CD will be indicated in the “Notes” field. In some cases, this field may be blank. It’s always recommended that you contact the bank directly and verify all account details and requirements before opening.
Best 6-month CD rates in Texas
If you’re hoping to give your savings a boost without locking up your money for a long time, a 6-month CD could be a great fit. These accounts allow you to set aside funds for a short period of time while earning a guaranteed fixed rate.
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Best 1-year CD rates in Texas
If you’d like to take advantage of the best CD rates available today by keeping your money on deposit a bit longer, consider a 1-year CD. You can lock in a great rate for 12 months and still have the flexibility to alter your plans if rates change a year from now.
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Best 5-year CD rates in Texas
For savers pursuing longer-term goals, a 5-year CD can provide a competitive rate that’s guaranteed for the next several years. You don’t have to worry about market fluctuations affecting your savings rate or risking your principal deposit.
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What is a certificate of deposit?
A certificate of deposit is a type of deposit account offered by banks and credit unions. It allows you to deposit a sum of money for a fixed interest rate over a certain period of time—anywhere from a few weeks to several years. CDs are known for their low risk and are considered one of the safest places to store your cash.
When you open a CD, you agree not to withdraw the funds until the maturity date. In return for locking in your money for this specified period, the financial institution typically offers a higher interest rate compared to regular savings accounts. If you withdraw the funds before the maturity date, you may incur an early withdrawal penalty.
What does APY mean on a CD?
APY stands for Annual Percentage Yield, and it represents the total interest you can earn on a CD over the course of a year when taking into account compounding. APY is an important metric when considering CD accounts because it provides a more accurate picture of your potential earnings than the nominal or stated interest rate.
What are the most common types of CDs?
When choosing a CD, you may come across different options with special features. Here are some of the most common types of CDs available:
- Traditional CD: This is the standard type of CD where you deposit a sum of money for a specific term and receive a fixed interest rate for the duration. It’s basically a “regular” CD.
- No-penalty CD: A no-penalty CD allows you to withdraw your funds, including interest, before the CD's maturity date without incurring penalties. This flexibility can be appealing to savers who want access to their money but still want to earn a higher interest rate compared to a regular savings account.
- Bump-up CD: A bump-up CD gives you the option to request an increase in your interest rate if market rates rise during your CD's term. Usually, you can only bump up the interest rate once during the term.
- Jumbo CD: These are similar to traditional fixed-rate CDs, but they require a larger initial deposit of around $100,000 and up.
- Brokered CD: These are purchased through a brokerage firm rather than directly from a bank or credit union. They can be traded on the secondary market and are considered a riskier option.
- Callable CD: With this type of CD, the issuing financial institution has the option to redeem or "call back" the CD before its stated maturity date. If this happens, you’ll receive your funds earlier than expected and may not earn as much interest.
How to choose the best CD in Texas
There are over 380 FDIC-regulated banks in Texas and 440 NCUA-regulated credit unions. Here’s how to choose the right one for your needs:
- Length of term: The term length of your CD refers to the period of time until it matures. CD term lengths can range from a few weeks to multiple years. It’s important to choose a term that aligns with your personal financial objectives.
- APY: The annual percentage yield (APY) of your CD is a key factor in the growth of your deposit. A higher APY translates to more income from interest.
- Minimum deposit: Most financial institutions have a minimum deposit requirement for opening a CD, ranging from just a few dollars to several thousand dollars. Ensure that you can meet the minimum deposit before opening a CD.
- Early withdrawal penalties: Typically, withdrawing from your CD before its maturity date incurs a penalty. Keep in mind the bank’s early withdrawal penalty, just in case you need your funds before the CD matures.
- Deposit insurance: Deposits at banks and credit unions are protected by the FDIC and NCUA, respectively. These entities insure deposits up to $250,000 per depositor in case of institutional failure.
