Texas residents enjoy a significant tax advantage when it comes to CDs: Texas has no state income tax. CD interest earned by Texas residents is taxed only at the federal level, meaning every dollar of CD interest goes further than it does for savers in California, New York, or Illinois. The best CD rates available to Texas residents reach that differ by bank and term at FDIC-insured online banks.
Bank rates below were read from each bank’s own page, with the date shown under the table. Verify current rates directly with the institution before opening.
Best CD Rates Available to Texas Residents (Online Banks, October 2026)
| Institution | Type | 12-Month APY | Min. Deposit |
|---|---|---|---|
| Popular Direct | Online | 4.50% | $10,000 |
| Marcus by Goldman Sachs | Online | 4.40% | $500 |
| EverBank | Online | 3.50% | $1,000 |
Rates read from each bank’s own page: Popular Direct October 5, 2026, Marcus October 15, 2026, EverBank October 9, 2026. These online banks accept customers in any state. We did not check rates at local credit unions and community banks, so they are not listed with rates here; ask them directly.
Texas Has No State Income Tax — What That Means for CD Savers
Texas is one of nine US states with no state income tax (alongside Florida, Washington, Nevada, Wyoming, South Dakota, Alaska, New Hampshire, and Tennessee). For CD savers, this means:
- Only federal income tax applies to CD interest
- The state tax exemption on Treasury bill interest provides no additional benefit for Texas residents — T-bills and CDs are treated identically at the state level
- A CD at a hypothetical 4.50% APY for a Texas resident in the 22% federal bracket has an after-tax yield of approximately 3.51% — higher than the after-tax yield for the same CD held by a California resident (who pays an additional 9.3% state tax, bringing their after-tax yield to roughly 3.09%)
Texas residents get the full benefit of competitive CD rates without state tax erosion.
What $10,000 Earns at Top Available TX Rates
| Term | APY (Popular Direct) | Gross Interest | After-Tax (22% federal bracket) |
|---|---|---|---|
| 6 months | 4.35% | ~$215 | ~$168 |
| 12 months | 4.50% | ~$450 | ~$351 |
| 2 years | 4.70% | ~$962 | ~$750 |
| 5 years | 5.00% | ~$2,763 | ~$2,155 |
Figures use Popular Direct’s APYs as of October 5, 2026 (it requires $10,000 to open a CD) and the compounding convention A = P(1+APY)^years.
Notable Texas Credit Unions
- Randolph-Brooks FCU (RBFCU) — Based in Universal City (San Antonio area); membership open to many Texas residents through employer or association affiliations; competitive certificate rates
- EECU — Fort Worth-based; open to education employees and family members in North Texas
- Texas Dow Employees Credit Union (TDECU) — Open to Gulf Coast area residents; competitive rates
- Navy Federal Credit Union — National CU with strong Texas presence; open to military, veterans, and family members
Comparing RBFCU vs. Online Banks
| RBFCU | Online Bank | |
|---|---|---|
| Minimum | $1,000 | Varies by bank |
| In-person branches | Yes (Texas) | No |
| NCUA/FDIC insured | Yes | Yes |
We did not read RBFCU’s current CD rates, so compare them with the online-bank rates above. RBFCU’s advantage is in-person service and its full suite of financial products.
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