Who Has the Highest CD Rates in Texas?

If you’re a Texan looking to grow your savings with a secure, high-yield investment, Certificates of Deposit (CDs) remain a top choice in 2025. With interest rates still elevated, now is an opportune time to lock in attractive returns. Whether in the Rio Grande Valley or elsewhere in the Lone Star State, this guide will help you navigate the best CD rates available, spotlighting the offerings from Bank of South Texas.

What makes the Lone Star State particularly interesting for CD investors is that Texas CD rates outperform many other regions across the U.S. While the national average for 1-year CDs hovers around 1.88% APY, Texas financial institutions offer rates well above 4%. These rates vary significantly based on several factors:

• Federal Reserve Policies
• The type of institution (national banks, local Texas banks, or credit unions)
• Term length
• Minimum deposit requirements
• Geographic location within the state

Why CDs Are a Smart Choice in 2025

Before diving into which bank offers the highest CD rate in Texas, it’s important to understand why CDs are such a reliable option this year.

• CDs provide fixed interest rates for a set term
• Returns are predictable and insulated from market volatility
• The FDIC protects funds up to $250,000
• CDs are a low-risk component of any diversified savings plan

 This stability makes CDs an especially smart move for cautious savers in uncertain economic times.

With Texas residents having access to everything from central national banks to community-focused credit unions and online-only institutions, the question becomes critical: Who currently offers the highest CD rates in Texas? The answer isn’t straightforward, as rates change frequently and promotional offers come and go. Let’s explore the Texas CD landscape to find where savvy savers can secure the most competitive returns for their hard-earned money.

Top CD Rates in Texas

With many financial institutions vying for your deposit in 2025, the competition has resulted in various attractive CD options. While national banking giants like Chase, Wells Fargo, and Bank of America maintain the most significant presence in Texas, their CD yields typically fall short of what smaller institutions offer.

When comparing Certificate of Deposit (CD) options in Texas, it’s important to weigh not only the interest rates but also the term lengths, minimum deposit requirements, and potential early withdrawal penalties. The following table highlights competitive CD offerings from banks and credit unions across the state. Whether you’re looking for a short-term savings option with a low entry point or a higher-yield jumbo CD, this comparison will help you identify the account that best fits your financial goals.

(Rates current as of May 2025 and subject to change)

Institution	CD Term	APY (%)	Minimum Deposit	Early Withdrawal Penalty
Ciera Bank	6 months	5.20%	$50	Not listed
Credit Human	12 months	4.25%	$500	Not listed
Susser Bank	3 months	4.10%	$1,000	Not listed
Alliant Credit Union	12 months	4.00%	$1,000	Not listed
Truist Bank	5 months	4.00%	Varies	Not listed
Bank of South Texas	12 months	3.75%	$1,000	Not listed
T Bank (Dallas)	12 months	4.40%	$500	1 month of interest
Greater State Bank	18-24 months	4.17%	$1,000	Varies
Bank of South Texas	6 months	4.02%	$1,000	90 days interest
Texas Bay CU (Jumbo)	Varies	Up to 4.28%	$50,000	Varies by term
Texas Bay CU (Regular)	Varies	Up to 3.97%	$1,000	Varies by term

This table shows a wide range of CD options available in Texas, with interest rates (APYs) ranging from 3.75% to 5.20%. Short-term CDs, like Ciera Bank’s 6-month CD at 5.20%, offer high returns with low minimum deposits, making them attractive for conservative savers. Longer-term and jumbo CDs offer competitive rates but often require higher deposits. Early withdrawal penalties vary and should be considered, especially for CDs with longer terms. Overall, the table provides a helpful comparison of options for both short- and long-term savers.

Choosing the Right CD for You

With so many options available, it’s essential to consider your individual needs and financial goals. Ask yourself:

• How long can I lock up funds? Shorter terms give quicker access, but lower returns.
• Is the APY worth it? Higher yields usually require longer commitments.
• Can I meet the deposit minimum? This varies widely: from $50 to $1,000 or more.
• Do I prefer online or in-person banking? Digital platforms offer convenience, but some may value face-to-face service.

Some Considerations before selecting CDs

• CD laddering, which involves spreading your total investment across multiple CDs with different maturity dates, is the most effective way to achieve returns. For example, you might divide $20,000 into four $5,000 CDs with terms of 6, 12, 18, and 24 months. As each CD matures, you can access the funds or reinvest at current rates.
• Term length selection is crucial when maximizing returns. Texas residents who don’t anticipate needing their money for at least two years may benefit from longer-term CDs, which typically offer higher rates and lock in yields even if banks reduce rates in the future. However, if liquidity is a concern, shorter-term CDs provide more flexibility with competitive rates in the current market.
• Minimum deposit requirements vary significantly among Texas institutions. While some CDs require just $500-$1,000 to open, others, particularly those with the highest rates, may need $25,000 or more.
• Early withdrawal penalties should also factor into your decision. Typical Texas penalties range from 90 days of interest for shorter-term CDs to 183 days for longer terms.
• Online Banks often offer higher APYs than traditional brick-and-mortar banks due to lower overhead costs, and could be considered when looking at CDs.

Spotlight on Bank of South Texas

If you’re looking for a community-focused bank that understands the unique needs of Texans, especially those in the Rio Grande Valley, Bank of South Texas deserves special attention. Though its rates aren’t the highest in the state, the bank offers a solid balance between yield, personalized service, and local accessibility.

CD Offerings from Bank of South Texas:

• 6-Month CD: 3.95% APY
• 12-Month CD: 3.75% APY
• 24-Month CD: 3.09% APYEach CD requires a $1,000 minimum deposit and features quarterly compounding interest. CDs auto-renew at maturity, and customers get a 10-day grace period to make changes.

Why It’s Worth Considering:

• Competitive Rates for a local bank
• Community-Driven Service with strong regional ties
• Convenient Digital Tools like mobile banking, debit card issuance, and surcharge-free ATMs

Bank of South Texas stands out for its strong local reputation and dependable CD offerings, making it an excellent option for residents in the Rio Grande Valley.  It offers a range of Certificate of Deposit (CD) options tailored to meet your financial goals. With fixed interest rates and terms from 6 to 24 months, you can earn more than a traditional savings account.

Enjoy peace of mind with a guaranteed rate of return and the flexibility to choose a term that suits your needs. Explore our CD offerings today and take the first step toward a more secure financial future. Learn more about our CD options.