High-interest Savings Accounts in Texas

Texas residents can tap into online savings accounts that offer competitive interest rates and provide convenient access to ATMs. Here’s everything you need to know about High-interest Savings Accounts in Texas.
High-interest Savings Accounts in Texas
High-interest Savings Accounts in Texas
Many banks provide high-interest savings accounts in Texas with minimal fees and balance requirements. Let's better understand how High-interest Savings Accounts in Texas in work.
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The Best Savings Accounts in Texas

Texas boasts a thriving banking landscape with over 6,400 locations and stellar customer satisfaction ratings. Regarding savings accounts in the Lone Star State, numerous options abound. Many banks provide high-interest savings accounts in Texas with minimal fees and balance requirements. Additionally, Texas residents can tap into online savings accounts that offer competitive interest rates, backed by FDIC insurance, and provide convenient access to ATMs through partnerships with other financial institutions. These online banks often offer superior APYs to traditional local banks, making them an attractive choice for savers. Meanwhile, check out Beem which will help strengthen your savings to ensure your hard-money continues to grow.

Online Savings Accounts Available in Texas

Online savings accounts present an appealing choice, and here is a compilation of some of the finest options available for Texas residents:

United Texas Bank

Established in 1986 as a boutique commercial bank, United Texas Bank has expanded to offer a range of business and personal banking solutions. While the interest rates on their personal savings accounts may not match those of online banks, they still outperform many national institutions. These accounts don’t impose minimum balance requirements for earning interest, but maintaining a daily balance of at least $500 is necessary to avoid a monthly service fee. Conveniently, account management can be done online or through the bank’s mobile app. United Texas Bank has two Dallas branches for those who prefer in-person banking.

Texas Capital Bank

Texas Capital Bank provides the Consumer Savings account as an uncomplicated savings option with no monthly service fee. Moreover, this account offers an optional Visa ATM card, granting customers convenient access to ATM withdrawals. For those looking to maximize their savings, the Star High-Yield Savings Account, exclusively designed for Texas residents, boasts an impressive 4.88% interest rate and a 5.00% APY for balances ranging from $0.01 to $1,000,000. There are no monthly service charges, no minimum opening balance requirements, and interest is compounded daily. Online and mobile banking with account alerts and FDIC insurance protection are provided.

Capital One

Regarding high-interest savings accounts in Texas, Capital One stands out with its 360 Performance Savings. This account not only offers an impressive 4.30% high-yield savings rate but also eliminates fees that are common at traditional brick-and-mortar banks. With no monthly or maintenance fees and no minimum balance requirements, you keep what you earn. Manage your savings effortlessly with easy account transfers, an automatic savings plan, and the convenience of mobile check deposits. Capital One’s 360 Performance Savings is your key to growing your savings in the Lone Star State.


In the realm of high-interest savings accounts available in Texas, SoFi stands out as an innovative choice. Rather than standalone savings accounts, SoFi offers a combined checking and savings account with some of the nation’s highest interest rates. This unique approach means customers earn interest on their checking and savings balances, all without account fees or minimum balance requirements. SoFi also simplifies saving with automatic features tailored for specific goals. While it lacks physical branches, the online platform provides easy account management and access to over 55,000 fee-free ATMs within the global Allpoint network.

Bread Savings™

Bread, an online bank, offers a lucrative high-interest savings account option for Texas residents comfortable with digital banking. By operating solely online, Brea avoids the expenses of physical branches and passes on the savings to customers through competitive interest rates. Initially known for commercial accounts, they now also provide personal accounts. These high-yield accounts require a minimum deposit of $100, with a maximum limit of $1 million. There are no monthly fees, and customers enjoy unlimited ACH and mobile deposits. Furthermore, Bread Savings accounts are FDIC-insured, protecting deposits up to $250,000 per depositor. The current APY stands at an impressive 5.15%, and no minimum balance is needed to earn it.


Barclays offers high-interest savings accounts to Texas residents, backed by its renowned global financial reputation. With an enticing APY of 4.35%, these accounts require no minimum deposit to open and come with no monthly fees. Barclays also provides a feature-rich mobile app for convenient account management. As a well-established institution headquartered in London, Barclays extends its savings accounts, CDs, and credit cards to U.S. customers. Opening a Barclays savings account is a straightforward online process, making it an accessible choice for Texans looking to maximize their savings.

CommonCents Credit Union

In the realm of high-interest savings accounts in Texas, credit unions like CommonCents Credit Union shine. Member-owned institutions often offer superior savings rates compared to big banks. CommonCents’ Ultimate Savings account stands out with no monthly service fee, minimum balance requirement, free online and mobile banking, and access to fee-free ATMs. While there’s a modest $5 minimum deposit to establish membership, eligibility is limited to those residing, working, studying, or worshiping in Jefferson or Chambers County. CommonCents Credit Union allows Texans to earn high interest on their savings.

The MINT National Bank

Local banks like The MINT National Bank offer attractive savings options in Texas for those ineligible to join a credit union. Their MonuMINT Savings account provides free online banking, checks, and an ATM/debit card. It’s important to note that exceeding six monthly withdrawals incurs a $10 debit fee, and maintaining a balance above $1,000 avoids the $10 monthly service charge. With offices in six Texas locations, including Kingwood, The Woodlands, Sugar Land, and Houston, The MINT National Bank allows Texans to earn above-average interest on their savings.

How We Picked?

We meticulously selected our list of banks by thoroughly analyzing various savings accounts in Texas. Our evaluation encompassed online banks, credit unions, big banks, and regional and local banks. Key criteria included:

  • Current Annual Percentage Yields (APYs)
  • Account prerequisites
  • Associated fees
  • ATM accessibility
  • Customer service availability
  • User-friendliness 
  • Flexibility of online and in-app banking options

This comprehensive assessment ensured that the chosen banks offered competitive rates, convenient services, and favorable terms to meet the diverse needs of Texas savers.

High-interest Savings Accounts in Texas

How to Choose High-interest Savings Accounts in Texas?

Selecting the correct savings account in Texas is a crucial financial decision that needs careful consideration of several vital factors. Here’s a more detailed exploration of these crucial considerations:

Interest rate

The interest rate on your savings account is paramount. While the national average often hovers around a meager 0.06% APY, Texas options offer significantly higher rates. Some accounts may even provide interest rates exceeding 0.50% or, in rare cases, reaching 1% or more. However, it’s essential to read the fine print. High-yield accounts may come with minimum balance requirements, which, if not met, could result in a lower interest rate.


Ideally, it would help to aim for a savings account with no monthly fees. However, some financial institutions may attach fees to their accounts. When assessing fees, carefully evaluate the benefits you’ll receive in return. For instance, if a savings account charges $10 monthly in fees but yields only $5 in monthly interest, there may be better choices. Ensure that the account’s features and interest rates justify any associated fees.

Opening deposit

Banks and credit unions have different requirements for the initial deposit to open a savings account. Some institutions, like Ally, offer accounts with no minimum deposit, allowing you to start with any amount you’re comfortable with. Others may mandate an initial deposit of $100 or more. Your choice should align with your financial capacity and goals.


Consider how you intend to access your savings. While savings accounts are typically designed for long-term deposits, it’s essential to anticipate your future financial needs. Traditional banks with physical branches offer in-person access for transactions, providing face-to-face assistance. Conversely, online institutions primarily rely on electronic methods such as ACH transfers or ATMs for withdrawals. Consider your preferred access method and ensure it aligns with your banking habits and future requirements.

By meticulously assessing these factors, you can make an informed and well-rounded decision when choosing a savings account in Texas. This approach will help ensure that your selected account suits your financial objectives, minimizes costs and returns, and aligns with your banking preferences.

What Kind of Account is Right for You?

Selecting the appropriate account hinges on your specific financial goals and lifestyle:

  • A high-yield savings account could be ideal if your priority is maximizing interest earnings and maintaining a minimum balance, as it typically offers competitive interest rates. 
  • For those seeking convenience and easy access to funds, an online savings account might be the best fit, allowing you to manage your finances digitally. 
  • Traditional bank savings accounts provide in-person service and may be preferable if you value face-to-face assistance. 
  • On the other hand, credit unions combine community support with competitive interest rates, making them an excellent choice for those who want to invest locally. 

To determine the correct account, evaluate your financial needs and personal preferences.

Where Can You Open a Savings Account in Texas?

In the vast landscape of Texas, you have a few options for opening a savings account. Each choice has advantages and considerations to cater to different financial needs and preferences:

Online Banks

Traditional banks are often the first choice that comes to mind when considering savings accounts. Texas is home to numerous national banking giants like Wells Fargo, Bank of America, and Chase, which offer the convenience of multiple physical branches. However, one drawback of these well-known institutions is that they typically offer lower interest rates on savings accounts. While they excel in accessibility with a widespread branch network, the interest you earn may not be as competitive as other options.


Credit unions present an appealing alternative for savers in Texas. These financial institutions are member-owned, which often results in lower fees and more attractive Annual Percentage Yields (APYs) on savings accounts. While credit unions generally offer competitive interest rates, it’s important to note that their convenience may vary. Smaller credit unions may have limited branch locations and offer fewer digital tools than large banks. However, credit unions can be an excellent choice if you value higher interest rates and a more community-oriented approach to banking.

Credit Unions

Online banks are gaining popularity among savers in Texas because they offer some of the best savings rates. Since online banks don’t maintain physical branches, they have lower overhead costs, enabling them to provide significantly higher interest rates on savings accounts. It can translate into more substantial earnings on your deposits. However, using online banks requires comfort with online and mobile banking platforms. While they may lack in-person services, their digital tools are usually robust and user-friendly.

When deciding where to open a savings account in Texas, aligning your choice with your financial goals and preferences is crucial. Ultimately, the right choice depends on your individual financial needs and your comfort with each type of institution’s services.

Texas Savings Accounts vs. CDs

Savings Accounts and Certificates of Deposit (CDs) are two popular financial instruments individuals use to save and grow their money in Texas. Let’s compare Texas Savings Accounts and Certificates of Deposit (CDs) based on several key factors:

Texas Savings AccountsCertificates of Deposit (CDs)
A Savings Account is a flexible, interest-bearing deposit account offered by banks and credit unions. It allows account holders to deposit and withdraw funds easily, making it suitable for short-term and emergency savings goals. While savings accounts offer lower interest rates than other options, they provide liquidity and accessibility to your money.On the other hand, a Certificate of Deposit (CD) is a time-based savings product that requires account holders to lock in their funds for a specific period, known as the CD term. In return, CDs typically offer higher interest rates than savings accounts, especially for longer-term commitments. However, they come with strict withdrawal restrictions and may impose penalties for early withdrawals.

Withdraw restrictions

Savings accounts offer flexibility when it comes to withdrawals. You can typically access your funds whenever you need them, making it a convenient option for emergency expenses or short-term financial goals. Some savings accounts may limit the number of withdrawals or transfers you can make each month, usually around six.CDs, on the other hand, come with strict withdrawal restrictions. When you open a CD, you agree to lock in your money for a specified term, ranging from a few months to several years. Early withdrawals before the CD matures often result in penalties, affecting your earnings.

Interest rates

Savings accounts usually offer lower interest rates compared to CDs. However, they provide more liquidity, allowing you to take advantage of higher interest rates when they become available without penalty.CDs typically offer higher interest rates than savings accounts, especially for longer-term CDs. The longer you’re willing to lock in your money, the higher the interest rate you can usually earn.

Best uses

Savings accounts are suitable for short-term financial goals, creating an emergency fund, or parking cash you may need access to shortly. They provide liquidity and safety for your funds.CDs are ideal for longer-term savings goals when you don’t need immediate access to your funds. They are well-suited for objectives like saving for a down payment on a house, funding a child’s education, or retirement planning. CDs can also help you earn a higher return on your money while keeping it safe.

Minimum balance

Many savings accounts have low or no minimum balance requirements, making them accessible to a wide range of savers. Some online banks offer high-yield savings accounts with no minimum balance requirements.CDs typically require a minimum deposit to open an account, and the minimum can vary significantly depending on the bank and the CD term. Longer-term CDs often have higher minimum deposit requirements.
High-interest Savings Accounts in Texas

How Interest on Savings Accounts Is Earned in Texas?

In Texas, as in most places, interest on savings accounts is typically earned through an Annual Percentage Yield (APY). The APY is a percentage representing the interest you’ll earn on your account balance over one year. This interest is usually compounded, meaning it’s calculated on both the initial deposit and the accumulated interest, and it’s credited to your account regularly, such as monthly or quarterly. The exact mechanics can vary between banks and account types. Still, the key is to maintain a sufficient account balance and ensure that the terms and conditions of your specific savings account are met to maximize your interest earnings.

How Do You Know How Much Money You Make on Interest?

Calculating how much money you make on interest in Texas involves understanding the components of interest accrual and using a simple formula. The key factors include:

  • Principal Balance: This is the initial amount you deposit into your savings account.
  • Interest Rate (APY): The Annual Percentage Yield (APY) represents the interest rate you earn over a year, expressed as a percentage.
  • Time: The length of time your money remains in the account, typically measured in years.

To calculate your interest earnings, use the formula:

Interest = Principal Balance × (APY ÷ 100) × Time

Here’s a breakdown:

  1. Start with your initial deposit, which is the principal balance.
  2. Multiply the APY by the principal balance, then divide by 100 to convert it to a decimal.
  3. Finally, multiply the result by the amount of time (in years) your money remains in the account.

For example, if you deposit $10,000 in a savings account with a 2% APY for one year:

Interest = $10,000 × (2 ÷ 100) × 1 = $200

You would earn $200 in interest over one year. Remember that the interest may be compounded, meaning it’s recalculated periodically, so your earnings can vary based on the compounding frequency. Still, this formula provides a general estimate of your interest earnings.

How Much Tax Do You Pay in Texas for Interest You Earned?

Texas has no state income tax on the interest earned from savings accounts, so you typically do not pay state taxes on the interest income you receive. It can benefit residents, allowing them to retain the full interest amount earned without state income tax deductions.

However, it’s important to note that while Texas doesn’t impose a state income tax, the federal government does tax interest income. The interest you earn on savings accounts is considered taxable income at the federal level. 

You will receive a Form 1099-INT from your bank or financial institution, which you must include when filing your federal income tax return. The federal tax you owe on your interest income depends on your overall income, tax filing status, and any applicable deductions or credits.

In summary, Texas residents benefit from not paying state income tax on interest earned from savings accounts. However, they are still subject to federal income tax on this interest income, so it’s essential to report it accurately when filing federal tax returns. Check out Beem to compare the best options for your financial needs and supercharge your savings today.

Frequently Asked Questions (FAQs)

Q. What is the largest bank in Texas?

JPMorgan Chase is the largest bank in Texas in terms of assets and market share.

Q. Where is the best savings account in Texas?

Texas’s “best” savings account can vary depending on individual preferences and needs. Online banks like Ally Bank, credit unions, and local banks all offer competitive options, so it’s essential to compare rates, fees, and services to find the right fit for you.

Q. Are saving accounts safe?

Yes, savings accounts are generally safe. They are typically insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000 per depositor per institution, ensuring that your funds are protected in case of bank failure.

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Allan Moses

An editor and wordsmith by day, a singer and musician by night, Allan loves putting the fine in finesse with content curation. When he's not making dad jokes or having fun with puns, he's constantly looking to tell stories out of everything.


This page is purely informational. Beem does not provide financial, legal or accounting advice. This article has been prepared for informational purposes only. It is not intended to provide financial, legal or accounting advice and should not be relied on for the same. Please consult your own financial, legal and accounting advisors before engaging in any transactions.

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