Best Certificates of Deposit (CD) Rates in Texas for 2025
- Credit Union of Texas has several CD available plus membership rewards such free financial counseling and exclusive discounts.
- Texas Capital Bank is a regional institution with many CD terms ranging from 1 to 24 months.
- Texas banks have several attractive short-term CDs, including a 6-month CD from the Credit Union of Texas.
- Online bank Vio offers CDs that range from 6 months to 120 months and have a minimum deposit amount of $500 to open.
Texans who are interested in secure investments with predictable returns may benefit from certificates of deposit (CDs). A CD can help you meet just about any short or long-term financial goal, such as remodeling your home, traveling the world, or paying for college.
To make your search for the ideal CD product a bit easier, we’ve created this guide on the best CD rates from banks and credit unions in the Lone Star State.
The Best CDs in Texas
Popular Banks and Credit Unions in Texas
- Credit Union of Texas: Credit Union of Texas (CUTX) offers a variety of CDs plus member perks like free financial counseling and exclusive discounts.
- Wells Fargo: With more than 700 branches in Texas, Wells Fargo offers personalized service and great rates on promotional CDs.
- Texas Capital Bank: Headquartered in Dallas, Texas Capital Bank is a regional institution with flexible CD terms ranging from 30 days to 24 months.
- Online Banks: Due to their lower overhead costs, many online banks offer Texans CD options with competitive rates and minimal to no fees.
Online Banks Offering CDs
Texas residents may enjoy a number of benefits by investing in CDs through online banks. Here are several of them:
- Higher Interest Rates: Online banks don’t have as much overhead as brick-and-mortar banks, so they can afford to offer higher rates on CDs.
- Accessibility: Regardless of where you live, you can open a CD from an online bank at any time, from any device with an internet connection.
- Low Minimum Deposits: Many online banks allow investors to open CD accounts with smaller amounts of money, like $500 or $1,000, for example.
- FDIC Insurance: Online banks are typically insured by the FDIC, which ensures that your CD funds will be protected if something goes wrong.
Below are several reputable banks online banks with attractive CD rates for Texans:
- CIT Bank: CIT Bank offers traditional term CDs, no-penalty CDs, jumbo CDs, and RampUp CDs, all without monthly fees.
- Marcus by Goldman Sachs: Marcus CDs are available in short and long terms, and you may open one for only $500.
- Vio Bank: Vio Bank’s CDs range from 6 months to 120 months and require just $500 to open.
- Bread Financial: With Bread Financial, you can choose a short-term 3-month CD, long-term 5-year CD, or anything in between and manage your account through the convenient mobile app.
Take a close look at your online options to find the best fit for your situation.
Factors to Consider When Choosing a CD in Texas
As you shop for a CD in the Lone Star State, here are several factors to consider.
Interest Rates
Higher rates mean better returns. If you’d like to maximize your earning potential with a CD, you’ll likely find the most competitive rates at online banks, as they can keep their costs down and pass the savings on to you.
Minimum Deposit Requirements
Every financial institution has its own minimum deposit criteria. The good news is that many banks and credit unions will allow you to open CD accounts with any sum of money or require only $500 or $1,000.
Term Length
The right term will depend on what you plan to do with your CD earnings. If you want to go on vacation in a few months, a short-term, 3-month CD might make sense. However, if your goal is to save for a house, a longer-term, 2-year CD may be a better option.
Early Withdrawal Penalties
If you opt for a traditional CD, you won’t be able to withdraw your money before your term is up unless you pay a large penalty. If flexibility is important to you, look for no-penalty CDs.
FDIC or NCUA Insurance
It’s important to ensure your hard-earned money is protected in the event a financial institution fails. Fortunately, most CDs are insured by the FDIC or NCUA for up to $250,000.
Local vs. Online Options
If you prefer a personal service experience, the Credit Union of Texas, Wells Fargo, or Texas Capital Bank may be a good fit. However, an online bank like Bread Financial or Vio Bank might be a better alternative if your priorities are competitive rates and low fees.
Promotional Offers
Some banks and credit unions offer promotional CDs in addition to traditional CDs. These promo CDs are typically only available for a limited time, so it’s a good idea to keep an eye out for them.
By paying attention to these factors, you’ll be able to narrow down the perfect CD product.
CD Pros and Cons
Pros
- Higher interest rates than checking, saving, and money market accounts.
- Fixed rates and predictable returns.
- Straightforward terms anyone can understand, including new inventors.
Cons
- Low liquidity as you’ll have to pay a penalty to withdraw funds early.
- Inflation risk, especially with longer-term CDs.
- Can earn higher returns through stocks, bonds, and mutual funds.
Ready to Grow Your Savings?
CDs provide a low-risk way for Texans to build their savings. There is no shortage of financial institutions with CD products, from local banks and credit unions to online banks. Take the time to shop around and explore all your options so you can find the best CD for your specific budget, goals, and preferences.
FAQs
Since Texas doesn’t impose state income tax, you’ll only owe CD-related Texas on the federal level.
Texas banks have several attractive short-term CDs, including a 6-month CD from the Credit Union of Texas.
Credit unions may be better for CDs in Texas if you prefer individualized service and a community feel and are willing to accept potentially lower rates and higher fees.
