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 approximately 4.44% APY in September 2026 through FDIC-insured online banks.
Rates shown are as of September 2026 and change frequently. Verify current rates directly with the institution before opening.
Best CD Rates Available to Texas Residents (September 2026)
| Institution | Type | 12-Month APY | Min. Deposit |
|---|---|---|---|
| Online banks (top-rate) | Online | 4.30–4.44% | $0–$10,000 |
| Randolph-Brooks FCU (RBFCU) | TX credit union | 3.75–4.25% | $1,000 |
| EECU (Educational Employees CU) | TX credit union | 3.50–4.00% | $500 |
| Texas Capital Bank | TX community bank | 3.25–3.75% | $1,000 |
| Prosperity Bank | TX community bank | 3.00–3.75% | $1,000 |
| Traditional big banks (Chase, BofA, Wells Fargo) | National bank | 0.01–1.00% | $1,000+ |
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 4.35% APY for a Texas resident in the 22% federal bracket has an after-tax yield of approximately 3.39% — 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 2.99%)
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 (top rate) | Gross Interest | After-Tax (22% federal bracket) |
|---|---|---|---|
| 6 months | 4.25% | ~$210 | ~$164 |
| 12 months | 4.35% | ~$435 | ~$339 |
| 2 years | 4.35% | ~$889 | ~$693 |
| 5 years | 4.40% | ~$2,402 | ~$1,874 |
Figures use the APY 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 | Top Online Bank | |
|---|---|---|
| 12-month APY (approx.) | ~4.00% | 4.30–4.44% |
| Minimum | $1,000 | Varies, often $0 |
| In-person branches | Yes (Texas) | No |
| NCUA/FDIC insured | Yes | Yes |
RBFCU’s rates are competitive for a credit union with branches — but top online banks consistently match or exceed them on rate. RBFCU’s advantage is in-person service and its full suite of financial products.
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