BEST SAVINGS ACCOUNT INTEREST RATES IN TEXAS: JUNE 2024
Vault’s Viewpoint: Overview of the Best High-Yield Savings Rates in Texas
Best APY
My Banking Direct High Yield Savings Account
Vault Verified
Why We Chose It
The My Banking Direct High Yield Savings Account boasts one of the highest APYs available at a bank or credit union.
Pros
- Same APY for all balances
- Backed by Flagstar Bank, which dates back to the 1800s
- Online and mobile banking capabilities
Cons
- Minimum opening deposit of $500
- Online-only with no branches
- Fees for non-Flagstar ATMs
Best APY With No Minimum Deposit
Forbright Bank Growth Savings
Vault Verified
Why We Chose It
Forbright Bank’s Growth Savings account pays one of the highest APYs for a savings account without requiring a minimum deposit.
Pros
- No minimum balance
- Customer service available 8 a.m.-8 p.m. ET Monday to Friday
- No financing of fossil fuel companies or projects
Cons
- Mostly online with only three branches
- No debit card
- Limited ATM access
Best for Same APY Across All Balances
UFB Secure Savings
Vault Verified
Why We Chose It
No matter the balance in your UFB Secure Savings account, you’ll earn the same APY. Learn more with our UFB Direct review.
Pros
- Access to about 91,000 ATMs in the U.S.
- No fees or minimum deposit
- Backed by Axos Bank
Cons
- Only one brick-and-mortar location
- Assortment of fees for services like paper statements or rush debit card replacement
- Limited number of financial products
Best APY for Texas-Based Bank
Bask Bank Interest Savings Account
Vault Verified
Why We Chose It
If you’re a Texan seeking to do business with a Texas-based bank, you may want to check out Bask Bank. Bask offers some of the best savings interest rates in Texas while supporting the local economy. Learn more with our Bask Bank review.
Pros
- No fees or minimum balance
- Ability to open a savings account to earn airline miles
- Backed by Texas Capital Bank
Cons
- Unfunded accounts may be closed after 15 business days
- No debit card
- No branches
Best APY for Credit Union Savings
KeyPoint Credit Union UltraSavings
Vault Verified
Why We Chose It
With its UltraSavings account, KeyPoint Credit offers some of the best high-yield savings rates in Texas and among credit unions nationwide.
Pros
- No fees or minimum balance
- ATM access
- 24/7 customer support
Cons
- $1,000 minimum deposit
- Specific requirements for membership
- No debit card
Best Online Savings Tied to a Big Bank
Marcus Online Savings Account
Vault Verified
Why We Chose It
In addition to an attractive APY, you gain some comfort knowing that Marcus is backed by banking giant Goldman Sachs. Learn more with our guide to Marcus savings accounts.
Pros
- No fees or minimum deposit
- 24/7 customer service
- Same-day money transfers up to $100,000
Cons
- Higher APYs available at other online banks
- No branches
- No ATM network
Best APY at a Traditional Bank
Capital One 360 Performance Savings
Vault Verified
Why We Chose It
Capital One is among a small group of traditional banks offering appealing APYs on savings accounts. Learn more with our guide to Capital One savings account interest rates.
Pros
- Dozens of branches in Texas
- No fees or minimum balance
- Quick application process
Cons
- No savings withdrawals at ATMs
- $30 fee for outgoing domestic wire transfer
- Not among the highest APYs available
How Much Can You Earn With a Savings Account in Texas?
The best savings interest rates in Texas can earn you thousands over a few years. The table below shows how much interest you could earn with the seven accounts highlighted earlier. Estimated earnings are based on a five-year period with an initial $10,000 deposit and no additional deposits.
In this example, interest is compounded daily. Compounding refers to the interest you earn on both the money you’ve saved and the interest you’ve earned.
How To Open a Savings Account in Texas
Generally, here’s how to open a savings account in Texas. Keep in mind that the process may differ from one financial institution to another.
- Research and select a bank or credit union. In addition to this guide, you may want to review our list of the best savings accounts available nationwide.
- Gather personal information. This likely will include your government-issued photo ID, Social Security number, date of birth, home address and phone number.
- Fill out an application. You may be able to do this online, on an app, at a branch or over the phone.
- Make an initial deposit. A financial institution may or may not require an initial deposit of a certain amount.
Tips for Choosing the Best Savings Account for You in Texas
Shop Around for the Best Rates
Look around to see which financial institutions are paying the highest APYs, but don’t choose a bank or credit union because it has one of the best high-yield savings rates in Texas. Sure, a 5% interest rate (or even a 7% interest rate in some rare cases) is nice, but only if the rest of the account’s terms and conditions work for you, too.
Review the Requirements
Know the minimum deposit and balance requirements, especially if you’re just starting to save money. Some banks may allow any balance just to open an account, but they might require a certain balance to earn the best APY.
Check the Fees
Be sure to carefully study what fees a financial institution charges, such as monthly maintenance fees and ATM fees. Ideally, you should choose a no-fee savings account. An account with too many fees might nibble away at your interest earnings.
Consider Additional Features
Does the financial institution operate brick-and-mortar branches? Does it offer easy online account access or a mobile banking app? How do customers rate the customer service? Assess the account’s full offering and compare it to others to see which features stand out as important to you.
Alternatives to a Savings Account
There are other ways to put your money to work besides savings accounts. Certificates of deposit (CDs), money market accounts and checking accounts can all be interest-bearing homes for your money.
Certificate of Deposit (CD)
Some banks and credit unions offer certificates of deposit. CDs often pay higher rates than savings and money market accounts, but the tradeoff is that you can’t withdraw the money in a CD until the CD expires. Otherwise, you may end up paying an early withdrawal penalty.
Money Market Account
A money market account at a bank or credit union may pay a higher interest rate than a savings account and typically lets an account holder write checks. However, the number of transactions you can make may be limited, and a minimum deposit might be required.
Checking Account
Many checking accounts pay no interest, and those that do typically offer rates below those of savings accounts, CDs and money market accounts. But as the name suggests, a checking account enables an account holder to write checks and make as many withdrawals as they want each month, while a savings account typically does not. In addition, unlike a checking account, savings accounts might not provide a debit card.
Frequently Asked Questions
How Do Online High-Interest Savings Account Rates Compare With Local Texas Banks?
Generally, online high-interest savings accounts pay higher rates compared with local Texas banks. That’s because online banks don’t bear the cost of operating and staffing brick-and-mortar branches.
Can I Open a High-Interest Savings Account in Texas if I Live in Another State?
You can often open a high-interest savings account in Texas if you live in another state. However, some banks and credit unions in Texas might restrict account access to out-of-state customers. For instance, a credit union might limit membership, shutting out some customers who aren’t in Texas.
Can I Access My High-Interest Savings Account at an ATM Anywhere in Texas?
In some cases, you might run into trouble accessing your high-interest savings account at an ATM. For example, a bank might not provide access to any ATMs at all or might not offer access to ATMs in your area.
The post Best Savings Account Interest Rates in Texas: June 2024 first appeared on Newsweek Vault.
2024-06-21T22:01:12Z dg43tfdfdgfd
