The Best CD Rates in Texas for 2025

As one of the most populated U.S. states, Texas is home to a long list of banks–big and small. So, it’s not surprising that residents might find it difficult to find and compare the plethora of options when it comes to certificates of deposit (CDs). We’ve taken on the task of sifting through these options to recommend the best CD rates for savers in Texas.

The Best CD Rates in Texas

Independent Financial

Independent Financial offers a decent range of CD maturity terms ranging from 30 days to 5 years. More importantly, the CD rates (especially for longer terms) are much higher than what you’d find from most other local Texas banks. Additionally, the bank runs promotional CD rates that are extremely attractive and competitive. The minimum balance requirement for standard Independent Financial CDs is $1,000.

Southside Bank

Southside Bank typically provides CDs with terms ranging from 6 months to 5 years. Their CD rates are also very competitive across the board. Even better, customers who deposit $100,000 or more in a CD qualify for a significant rate boost–topping the CD rates that you’d find at popular online banks. The minimum balance requirement for Southside Bank CDs is $1,000.

Woodforest National Bank

Woodforest National Bank stands out with its compelling promotion of CD rates on shorter maturity terms. Typically, the bank offers maturity terms ranging from 1 month to 5 years. The minimum balance requirement for Woodforest National Bank CDs is $500.

Lock In The Highest CD Rates Before Interest Rates Crash Again

The Federal Reserve plans to continue dropping interest rates. To ensure that you continue to generate reliable returns for years to come, consider a CD now to lock in the highest available rates:

Methodology

To choose the best CD rates in Texas, the MyBankTracker team surveyed the certificate of deposit accounts offered by the top 50 retail banks by deposit market share in Texas (based on FDIC June 2024 data) with more than 10 locations in the state--including coverage and availability in major cities such as Houston, Dallas, Fort Worth, Austin, and San Antonio.

The top recommendations are the results of analyzing the CDs based on the following criteria:

• Annual percentage yield (APY) for each CD’s corresponding maturity term
• The number of CD maturity terms available from the bank with which their corresponding APYs are competitive
• Minimum opening deposit requirements

How Do CDs Work?

Certificates of deposit (CDs) are time-bound savings instruments offered by banks and credit unions. 

When you open a CD, you agree to deposit funds for a fixed term (e.g., six months, one year, or five years). In exchange, the bank guarantees an interest rate that remains locked throughout the term. 

Unlike traditional savings accounts, which allow unlimited withdrawals with minimal penalties, CDs restrict access to your money until maturity. Early withdrawal typically incurs fees, making CDs ideal for funds you can afford to set aside long-term.

How to Pick a Certificate of Deposit

When you go through the process of picking a CD, these are the key factors you might consider and evaluate:

• Interest Rate: Research rates across institutions. Online banks often offer higher CD interest rates than traditional banks due to lower operational costs 
• Maturity Term: Shorter terms (e.g., 3–6 months) provide better liquidity but yield lower returns, while longer terms (e.g., 5 years) offer higher rates. Choose based on your financial goals—short-term for flexibility or long-term for growth .
• Minimum Opening Deposit: Requirements vary: some institutions demand $1,000+, but online banks may accept as little as $1 to open a CD.
• Early Withdrawal Penalty: Withdrawing funds early usually results in forfeiting accrued interest or paying fees. Avoid penalties by only investing money you won’t need before maturity.
• Flexibility Options: Some CDs allow features like:
  • Bump-up CD: Lets you request a higher rate if rates rise during the term.
  • Liquid CD: Permits limited withdrawals without penalty.
  • Add-on deposits: For incremental contributions to your CD balance.

Compared to Online CDs Available Nationwide

Online banks provide competitive advantages over traditional institutions:

• Higher Rates: Lower overhead costs enable better returns (e.g., 0.5% vs. 1.2% APY for similar terms).
• Lower Minimums: Many online CDs start at $1, compared to the average $1,000–$2,500 minimum at brick-and-mortar banks.
• Accessibility: Digital platforms simplify account management, including auto-renewal settings and real-time alerts.

FDIC Insurance

FDIC insurance protects CDs up to $250,000 per depositor, per bank, per ownership category (e.g., individual vs. joint accounts). Verify that your institution is insured—most banks, including online banks, carry this coverage. Funds deposited in multiple accounts at the same bank are aggregated for insurance purposes, but accounts at separate institutions are insured individually.

FAQs

What happens when a CD reaches maturity? Does it renew?

At maturity, CDs typically auto-renew with the same term unless you instruct otherwise. Contact your bank to reinvest, withdraw funds, or transfer proceeds to another account.

What is a CD ladder?

A CD ladder involves investing in multiple CDs with staggered maturity dates (e.g., 3-month, 6-month, and 1-year terms). This balances liquidity and higher returns by regularly accessing matured funds while maintaining exposure to long-term rates.

How is interest accrued in a CD?

Interest compounds periodically (daily or monthly) but may not be accessible until maturity. Some banks allow withdrawals of earned interest without penalty, depending on the product terms.

How are interest earnings in CDs taxed?

Interest from CDs is taxed as ordinary income at your federal and state tax rates. Report earnings annually using Form 1099-INT, provided by your bank.