Texas Capital Bank high-yield savings account review
If you’re a Texan looking for a place to park your hard-earned money, a high-yield savings account from Dallas-based displayname is worth exploring.
With the Star high-yield savings account, you can enjoy an attractive interest rate without worrying about minimum balance requirements or monthly service charges.
In this Texas Capital Bank high-yield savings account review, we’ll go over key account features as well as the benefits and drawbacks of this product so you can decide if it makes sense for your unique situation.
Texas Capital Bank high-yield savings account overview
Texas Capital Bank’s high-yield savings account offers up to apy% APY rates_last_updated, which is competitive when you consider the national average on deposit products is 0.41%. As long as you have a Texas address, you can open this account with as much or as little cash as you’d like.
Interest will compound daily and your savings will be FDIC-insured up to $250,000 per depositor. To access your account, you can pop into a local Texas branch or take advantage of the bank’s online banking or mobile app.
Key account features at a glance
The Star high-yield savings account stands out for several reasons, including:
- No account minimums: Texas Capital Bank gives you the freedom to choose how much money you want to keep in your account, providing greater flexibility and peace of mind.
- Easy access: Whether you prefer an in-person banking experience or digital banking with account alerts, the Star high-yield savings has you covered.
- No monthly fees: With this account, you won’t face any monthly fees, such as account maintenance or service fees that you might find elsewhere.
- FDIC-insured: The high-yield savings account from Texas Capital Bank is FDIC-insured, which means you’re protected up to $250,000.
How much can you earn? Real returns analysis
Your earning potential with the Star high-yield savings account depends on a few factors, such as your account balance, the current APY, and how long the money remains in your account.
Let’s say you stash $20,000 for three years under a hypothetical 3.65% APY. In year one, you’d earn $730 in interest, which would bring your balance to $20,730.
By the second year, your interest would increase to $1,486.65 for an account total of $21,486.65. In year three, you’d be looking at $2,270.91 in interest and a balance of $22,270.91. Note that because interest compounds daily, your exact earnings may vary slightly from these estimates.
Texas Capital Bank high-yield savings: Pros and cons
As with any financial product, the high-yield savings account at Texas Capital Bank comes with pros and cons that are important to consider.
Advantages
- Higher returns than a traditional savings account: Your money will grow faster in the Star high-yield savings account than in a standard savings account with a significantly lower APY.
- Liquid funds: Unlike certificates of deposit (CDs), there are no early withdrawal penalties, so you can access cash any time you have an unexpected or planned expense.
- Not subject to market volatility: You don’t have to worry about your account fluctuating due to market swings, like you would with stocks or investments.
- No fees: Texas Capital Bank doesn’t impose monthly fees that could eat into your savings.
- Deposit protection: FDIC insurance will protect your money in the rare event that the bank fails.
Limitations to consider
- Must be a Texas resident: At this time, the Star high-yield savings account from Texas Capital Bank is only for those who live in Texas.
- Variable APY: The APY will fluctuate based on Federal Reserve policy and market conditions, meaning it may decrease over time and affect your long-term projections.
- Low rates for high balances: If you plan to keep a lot of cash in your account, you’ll have to settle for a lower APY that can interfere with your savings goals.
- No debit card access: While Texas Capital Bank’s checking accounts offer debit cards, the high-yield savings account does not, requiring an extra step to access funds.
- Lower returns than investments: You’ll likely be able to earn higher returns by investing in stocks, bonds, and mutual funds.
Is Texas Capital Bank a good bank?
Founded in 1997 and headquartered in Dallas, Texas, Capital Bank operates as a commercial, relationship-driven bank rather than a traditional consumer bank. The FDIC-insured institution offers a full-service banking experience for Texas residents, primarily those with businesses or complex financial needs.
In addition to checking and savings accounts, Texas Capital Bank offers money market accounts, CDs, private banking services, treasury solutions, financing, and investment banking. The bank’s mobile app has a 4.6 out of 5-star rating on the Apple App Store and 4.4 out of 5 stars on Google Play.
For customer service, representatives are available Monday through Friday, 7 a.m. to 6 p.m. and Saturday, 9.a.m. to 4 p.m. CT. There’s also an automated phone service at 877-839-2265 that operates 24 hours a day.
How Texas Capital Bank compares to top high-yield savings accounts
Texas Capital Bank’s Star high-yield savings account is one of many high-yield savings products on the market. Here’s how it compares to three popular options.
Synchrony
Synchrony Bank high-yield savings is similar to the high-yield savings account at Texas Capital Bank in that there are no minimum balance requirements or monthly service fees. The main difference is that a Synchrony account is available to residents of any state, while Texas Capital Bank limits its accounts to Texans. Also, Synchrony is a digital-only bank, and Texas Capital Bank has locations throughout the Lone Star State.
Barclays
Like the Star high-yield savings account from Texas Capital Bank, Barclays Online Savings doesn’t charge monthly fees or require a specific minimum balance. Where it shines, however, is its goal-based savings tool that can help you with a variety of short and long-term financial goals. Plus, anyone can open an account online with Barclays as long as they’re a U.S. resident.
Citi
The Citi Accelerate Savings Account offers both in-person banking at Citi branches and online banking. Unlike Texas Capital Bank’s high-yield savings account, there are monthly service fees, but there are ways to avoid them. You can also combine the savings account with your checking account to help with overdrafts. Additionally, Citi’s account is an option throughout the U.S., not just in Texas.
Who should open a Texas Capital Bank high-yield savings account?
If you’re a Texas resident and any of the following apply to you, a Star high-yield savings account should be on your radar if:
- You prioritize relationship banking. Texas Capital Bank focuses on long-term relationships, so if this is important to you, the Star savings account could be a solid choice.
- You’re a business owner or have a complex financial situation. You may benefit from this account if you plan to keep large sums of money in it and have unique needs due to your business, startup venture, side hustles, or non-traditional career path.
- You want to build an emergency fund. With this account, you’ll get liquid, FDIC-insured funds you can access at any time without penalties.
- You have short-term savings goals. Whether you’re saving for a down payment, vacation, or another major purchase within the next one to three years, the Texas Capital Bank high-yield savings is worth exploring.
- You’re a risk-averse investor. This high-yield savings option may meet your needs if you prioritize principal protection over higher-risk investment returns.
You may want to consider alternatives if:
- You’re comfortable with market risk. In this case, you’ll have the potential for higher long-term returns elsewhere.
- You want fixed rates. CDs might be a better fit if you don’t like the idea of variable rates that can go up and down over time.
- You require debit card access for immediate transactions. You may find a checking account more suitable.
Important account limitations and considerations
Before you go ahead and open a Star high-yield savings account from Texas Capital Bank, keep these drawbacks in mind.
Withdrawal limits
Most high-yield savings accounts cap withdrawals and transfers at a specific number per month, and Texas Capital Bank is no exception. You can make a maximum of six preauthorized withdrawals or transfers within each month. Exceeding this limit may result in fees.
Rate variability
The advertised APY is not set in stone. Unlike fixed-rate CDs, your earnings in the Star high-yield savings account may fluctuate. To manage this, monitor rate changes quarterly and compare rates across banks annually. Also, if rate stability is a priority, consider CD laddering for a portion of your savings.
How to open a Texas Capital Bank high-yield savings account
Once you decide to move forward with a Texas Capital Bank high-yield savings account, follow these steps.
1. Verify eligibility: As long as you’re at least 18 and have a residential address in Texas, you may open an account.
2. Prepare documentation: Gather your Social Security number, government ID, and initial deposit.
3. Complete application: Apply online through Texas Capital Bank’s website or in-person at a local branch. You’ll also need your mobile device to confirm your identity and upload the required documents.
4. Fund your account: Transfer initial deposit from existing bank account.
5. Set up online access: Register for online and mobile banking services.
6. Enable automatic transfers: Consider automatic monthly transfers to build savings consistently.
Texas Capital Bank’s high-yield savings account offers competitive rates significantly higher than traditional savings accounts — earning close to 4% APY versus the 0.41% national average.
With FDIC insurance up to $250,000 and liquid access to funds, it’s an excellent option for emergency funds and short-term savings goals, especially if you’re a business owner.
However, it’s only a good option if you live in Texas and are comfortable with the variable rate nature and withdrawal restrictions. Before opening an account, compare current rates across multiple institutions and ensure the structure aligns with your unique financial goals and access needs.
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