The Best Savings Accounts in Texas
Texas is the second-biggest state in the U.S. in terms of area and population.
That’s why it’s not surprising that Texas is also home to a diverse pool of banks, including familiar national banks and lesser-known financial institutions.
We reviewed savings accounts offered at the top 50 Texas banks (based on total deposits) and found the best options available.
And, as always, we recommend comparing them to online savings accounts that are available nationwide.
Best Savings Accounts in Texas
- Independent Bank
- United Texas Bank
- Capital One
While the savings account options from the bigger banks may look too promising, these local Texas banks can deliver more attractive alternatives.
This usually means lower fees, higher interest, and better features. These other local savings accounts are available near Houston, San Antonio, Dallas, and Austin.
The Independent Bank REALSaver account is one of the better options when compared to the big banks. It requires a linked checking account, but it has no monthly fee or minimum balance requirement.
The interest rate is much better than what you’ll get at bigger banks. However, you do need to keep a $15,000 balance to earn that rate.
NexBank offers a generous high-yield money market account that has a very competitive APY. The caveat is that you must keep a daily balance of at least $10,000 or you’ll be hit with a $25 monthly fee. The account also comes with an ATM card and the ability to write checks.
United Texas Bank
The Personal Loan Star Money Market account from United Texas Bank claim to offer a “Texas-sized” interest rate and it does deliver.
The account’s APY comes slightly lower than what you’d find at the top online banks, but it is still impressive. Note that there is a $15 monthly fee if your balance falls below $2,500.
BankDirect is the online banking division of Texas Capital Bank that offers a rather lackluster savings account when it comes to interest rates.
However, it doesn’t have any monthly fee, and you get a free ATM card along with four ATM fee refunds per statement cycle. This could be handy for people who take out cash often from their savings accounts.
These local Texas banks can provide superior alternatives to what the larger banks in the state are able to offer. Yet, they’ll still struggle to when compared with the best online banks. Again, their biggest upside is the access to branches.
BBVA offers an online savings account with no quarterly service charge ($3 fee per quarter in which you want a paper statement).
Capital One offers a savings account that doesn't charge any fees and it also provides a significantly higher savings rate than what you'd find at a typical brick-and-mortar bank.
Online Savings Accounts Available in All States
The best savings account for you isn’t always the one that is offered by a bank in your neighborhood or places you frequent.
If you didn’t know already, banks that run the physical branch and ATM networks are more likely to offer accounts that come with monthly fees and low-interest rates.
No branches mean better rates, lower fees
Online banks don’t have to pay the expenses of running brick-and-mortar locations. They save costs including real estate, utilities, and employee compensation.
Therefore, online banks translate those savings into accounts that have no monthly fees and highly competitive interest rates.
And, most online savings accounts are not restricted to residents in a specific state or city. You just need a web connection, and you can open and manage an online savings account without trouble.
As more people turn to online and mobile banking (especially dedicated mobile banking apps), it’s easier to take advantage of the benefits of online banks.
Saving is branchless
When you’re saving, it’s usually best if you’re not transacting through the account too often. You’re only supposed to be moving money into the account regularly and consistently.
There isn’t much else you need from a savings account. So, the lack of branch might even help you stay focused on the simple act of building savings.
Largest Banks in Texas
The biggest Texas banks got to their size mostly because of their strong physical presence in the state. Consumers can walk into a branch and open a savings account with ease.
Generally, these accounts do the job of keeping the money -- they’re not as good for growing your money.
Here are some of the savings accounts that you’ll commonly find at these banks:
FDIC Insurance Has You Covered
You want your hard-earned savings to be a safe place. When you can see your money go into a local Texas bank, there’s a sense of security that your money is there and that you can get it whenever you want.
Luckily, the money in online banks is protected by the FDIC in the same way as any other bank, including those near you with nearby branches.
The FDIC insures up to $250,000 per depositor per account ownership type. You can end up with more than $250,000 that is safely insured at a single bank by using accounts with different ownership types.
For example, you’ll be fine if you keep $250,000 in a personal savings account and another $50,000 in a jointly-owned savings account at the same bank. You’ll have a total of $300,000 in insured deposits at a single financial institution.
Any FDIC-insured bank will keep your money safe, regardless of whether it is a local bank or an online bank.
Are Online Savings Accounts Right For You?
Banking only through the web can seem like a big change in your financial lifestyle, but it might not be as scary as it seems initially.
Here’s how you can find out for yourself whether you are ready for the switch:
Figure out how often you use a branch
When was the last time you visited a local bank to interact with your savings? Many people find themselves making this trip less and less because they’re already managing their savings through the web.
Ask yourself if you’re already mobile
Mobile banking apps are capable of performing the majority of your essential daily banking activities at home (or wherever you may be).
With great features such as mobile deposit, branch banking might not mean much to you.
Let the potential savings growth convince you
Interest rates can be hundreds of times higher at online banks.
Find out how much faster your much could grow with a better rate by comparing the estimates using an APY calculator.