Texas is one of the biggest states in the US. As of 2019, it has 29 million residents with only 500 banks.
You know what this means, right? There are more customers than banks. In Economics, it is the tussle between demand and supply. Remember that there is an inverse relationship between demand and supply. In this case, the demand is customers and supply- banks.
In order to avoid this rate race, indulge the services of the best banks in Texas for savings & investment whose credibility has been tested and remains unchanged even in the presence of more demand.
Read below to examine the 13 best banks in Texas. Relevant information about them has been included in this article. Likewise, an overview of savings and investment has been given.
Overview on Savings & Investment
Savings & Investment have been used interchangably, but there is a difference.
According to SAM, Saving is setting aside the money you don’t spend now for a future purchase. It’s money you want to be able to access quickly, with little or no risk, and with the least amount of taxes. Financial institutions offer a number of different savings options.
Likewise, Investing is buying assets such as stocks, bonds, mutual funds, or real estate with the expectation that your investment will make money for you. Investments usually are selected to achieve long-term goals. Generally speaking, investments can be categorized as income investments or growth investments.
You can invest in Digital Real Estate.
Bankrate.com iterated the point by adding that Savers typically deposit money in a low-risk bank account. Those looking to maximize their earnings should opt for the highest annual percentage yield (APY) savings account they can find.
Additionally, Investing is similar to saving in that you’re putting away money for the future, except you’re looking to achieve a higher return in exchange for taking on more risk. You’ll use an investment broker or brokerage account to buy and sell them.
If you’re looking to invest money, you should plan to keep your funds in the investment for at least three to five years.
From this, we can deduce that banks in Texas can perform the function of savings & investments.
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Tips to Maximize Savings
If you’re looking to maximize your savings interest rates, bank with an online-only bank. They usually offer the best rates. Although this may be a worrisome act for the tech-averse, data has shown that online banks offer the best rates. This may be as compensation for their lack of physical presence.
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15 Best Banks in Texas for Savings & Investment | 2022
We will explain the best banks in Texas for savings and investment in this section. Stay with us!
#1 – Capital One
This is one of the best banks in Texas for savings and investment. They usually offer the best savings rate.
Its Capital One 360 savings account gives a 1.30% APY on any amount you deposit.
A typical APY is 0.05% APY on all balances.
If you’ll like to get a checking experience with a high yield savings rate, you can open a regular essential checking account with your 360 savings account. With this, you can transfer money from the checking account to the savings account.
#2 – BBVA Compass Bank
This is the best bank in Texas for people who don’t want to be charged a monthly fee for their checking accounts.
You basically save an annual $120 which would have been absorbed as charges.
In addition to the free checking account, large balances also receive high savings rates. For example, customers with a balance of $10,000 in the ClearChoice Money account receive a 2.35 APY.
Note that this rate is only applicable for accounts opened online and there is no time limit for this high APY on this money market account.
The savings account has a much lower APY of 0.05% with balances less than $10,000 accruing a monthly fee of $15. The minimum deposit is $25
I’d say the hook never misses a target. However, at BBVA compass bank, you’ll get all the best services regional banks provide.
#3 – Ally Bank
Ally is an entirely-online bank that has both mobile and web-based activities. The APY is 0.05% for its savings account.
Then, for the checking account, the minimum daily balance receives 0.10% and $15,000 receives 0.25% APY.
#4 – First National Bank Texas
This is one of the best bank in Texas that aids savings and investment for small businesses.
With over 300 branches within the state, your business is within reach of a First National Bank Texas branch.
They offer loans and merchant services to small business owners. Checking account removes the $11.97 monthly fee. Also, there is free with 10 debit card uses OR $250 daily minimum.
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#5 – Wells Fargo
This is one of the best banks in Texas that has a great concentration of banch locations and ATMs in Texas.
Similarly, they also have great online and mobile features.
Wells Fargo bank offers services like Checking accounts, Savings account and CDs, Debit & Credit cards, Foreign Exchange, and Global Remittance Services.
The premium savings account has an APY of up to 0.02% for customers with a linked Wells Fargo Portfolio account and a 0.01% for its Way2save product and a minimum opening deposit of $25.
#6 – Frost Bank
If you’re looking for a bank that will offer you the best customer service, it is Frost.
Unlike some banks, there are no arbitration clauses in account agreements. The Frost savings account has a minimum deposit of $50 and a 0.01% APY.
#7 – CIT Bank
Founded in 2011, CIT Bank is a member of FDIC. It is an online bank that offers CDs, savings accounts, IRAs, and custodial accounts.
The CIT Bank Savings Builder account gives a 0.45% APY if you can maintain a $25,000 minimum balance or have a $100 monthly deposit. Instead, you’ll receive a 0.29% APY.
There is a minimum deposit of $100
#8 – Chase Bank
This is the best bank in Texas for students. Students can benefit from the Chase College Checking Account meant for college students from 17 to 24 years old.
To avoid the monthly fee of $6 all through your college days, you need to make a direct deposit of $5,000 each statement cycle.
For the checking account, there is no minimum deposit and APY.
The minimum deposit in an Ally bank accounts is $0. Customers get 0.5% APY.
#9 – Bank of America
The bank of America was founded in San Francisco in 1998 when the Nations Bank acquired Bank America.
According to the website, Bank of America offers services like checking, savings, credit cards, home loans, auto loans, and investing.
Savings attract an interest of 0.01%. Likewise, users need to have a minimum balance of $500 to avoid fees.
You may wish to read this: Bank of America Student Loans: Refinancing and Alternatives.
#10 – USAA Federal Savings Bank
This is one of the biggest and best banks in Texas in terms of asset size. USAA’s checking account has no fees and minimum balance after you open it with $25.
It has a reliable savings account and up to 0.3% APY. There are also special features for military members and overdraft protection for customers with a second USAA account.
#11 – Texas Capital Bank
Texas capital offers all banking services except home mortgages. However, it provides mortgages for businesses with credit solutions and global services.
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There is a smart checking account, and the free option has an opening deposit of $100. With it, you get free first checks, visa check cards, and online/mobile banking.
Lastly, the savings account has a minimum opening amount of $100 and an APY of 0.01% but there are no fees.
#12 – Prosperity Bank
The savings account from prosperity bank offers a high APY of 0.30% but waves the $3 monthly service fee if your balance is at least $200.
There is also a free checking account that has no service charge and minimum balance when you open the account with $100 and above.
#13 – Independent Bank
This is another best bank in Texas with an APY of 0.5%. The account is automatically paired with a free reward checking account. To get a high-interest rate, you need a high balance.
The free reward checking account gives 1.5% APY if your balance is up to $10,000, but it requires a $100 minimum deposit.
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Conclusion
In conclusion, we have itemized all the banks with their key features below. Check it out.
| Bank | Account Types | Interest Rate | Min Deposit |
|---|---|---|---|
| #1 Capital One | Savings & Checking | 0.05% | N/A |
| #2 BBVA Compass Bank | Savings, Checking,& Money account | 0.05% | $25 |
| #3 Ally Bank | Savings, Checking | 0.5% | $0 |
| #4 – First National bank Texas | |||
| #5 – Wells Fargo | Savings | 0.01% | $25 |
| #6 – Frost Bank | Savings | 0.01% | $50 |
| #7 CIT Bank | Savings & CDs | 0.45% | $100 |
| #8 Chase | Checking and Savings accounts | 0.01% | $25 |
| #9 Bank of America | Savings, Checking account | 0.01% | $500 |
| #10 USAA Federal Savings Bank | Savings, Checking account | 0.3% | |
| #11 Texas Capital Bank | Savings, Checking Account | 0.01% | $100 |
| #12 Prosperity Bank | Savings,Checking accounts | 0.3% | |
| #13 Independent Bank | Savings, Checking | 0..5% | $100 (Checking) |
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