What are the best CD rates in Texas right now?

As of May 2026, the best CD rates available to Texas residents reach approximately 4.50%–4.75% APY at top online banks including Ally, Marcus, and Discover Bank. Texas-based credit unions such as Randolph-Brooks Federal Credit Union (RBFCU) and EECU also offer competitive share certificate rates in the 4.00%–4.50% APY range. Rates change frequently — verify before opening.

Is CD interest taxable in Texas?

Texas has no state income tax. CD interest earned by Texas residents is subject only to federal income tax — not any state-level tax. This gives Texas savers a tax advantage over residents of high-tax states like California and New York, keeping more of their CD interest income.

Do Texas residents benefit from Treasury bills vs. CDs?

Because Texas has no state income tax, the state tax exemption on Treasury bill interest provides no additional benefit beyond what CDs already offer. Both CDs and T-bills are taxed at the federal level only for Texas residents. The choice between CDs and T-bills for Texans is therefore based purely on yield and convenience, not state tax considerations.

What are the best Texas-based banks and credit unions for CDs?

Top Texas options include Randolph-Brooks Federal Credit Union (RBFCU) — a large San Antonio-area credit union open to members across much of Texas — and EECU (Educational Employees Credit Union) in Fort Worth. Prosperity Bank and Texas Capital Bank are Texas-based community banks that occasionally offer competitive CD rates. Online banks nationally available to TX residents typically offer the best overall rates.

Can I open a CD online from Texas at an out-of-state bank?

Yes. FDIC-insured online banks like Ally, Marcus, Discover, and CIT Bank are available to residents of all 50 states including Texas. You apply and manage your account entirely online. There is no requirement to use a Texas-based bank for your CD.

Texas CD Rates 2026 — Best CDs Available to TX Residents

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 4.75% APY in May 2026 through FDIC-insured online banks.

Rates shown are as of May 2026 and change frequently. Verify current rates directly with the institution before opening.

Best CD Rates Available to Texas Residents (May 2026)

Institution	Type	12-Month APY	Min. Deposit
Online banks (Ally, Marcus, Discover, CIT)	Online	4.50–4.75%	$0–$2,500
Randolph-Brooks FCU (RBFCU)	TX credit union	4.00–4.50%	$1,000
EECU (Educational Employees CU)	TX credit union	3.75–4.25%	$500
Texas Capital Bank	TX community bank	3.50–4.00%	$1,000
Prosperity Bank	TX community bank	3.25–4.00%	$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 4.65% APY for a Texas resident in the 22% federal bracket has an after-tax yield of approximately 3.63% — higher than the after-tax yield for the same CD held by a California resident (who pays an additional 9.3% state tax)

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	Gross Interest	After-Tax (22% bracket)
6 months	4.40%	~$219	~$171
12 months	4.65%	~$465	~$363
2 years	4.10%	~$838	~$654
5 years	3.65%	~$1,970	~$1,537

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; $14B+ in assets; 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	Ally Bank	Marcus
12-month APY	~4.25%	~4.65%	~4.60%
Minimum	$1,000	$0	$500
In-person branches	Yes (Texas)	No	No
NCUA/FDIC insured	Yes	Yes	Yes

RBFCU’s rates are competitive for a credit union with branches — but online banks consistently match or exceed them on rate. RBFCU’s advantage is in-person service and its full suite of financial products.

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy