What is the current Frost Bank CD rate?

As of June 2026, Frost Bank CD rates range from approximately 2.00% to 3.75% APY depending on the term and balance. Frost's CD rates are below what top online banks offer (4.00–4.50% APY), but they are above the national average for traditional banks. Frost operates exclusively in Texas. Verify the current rate at frostbank.com before opening an account.

What is the minimum deposit for a Frost Bank CD?

Frost Bank typically requires a minimum deposit of $1,000 to open a standard CD. Some terms or specialty products may have different minimums. This is higher than online banks with no minimum (Ally, Capital One) but similar to other regional banks.

What is the early withdrawal penalty on Frost Bank CDs?

Frost Bank's early withdrawal penalties are typically 90 days of interest for CDs with terms of 12 months or less, and 180 days of interest for longer terms. Breaking a Frost CD early will reduce your effective yield. Frost does not offer a no-penalty CD option.

Does Frost Bank operate outside of Texas?

No. Frost Bank operates exclusively within Texas, with branches concentrated in major Texas markets including San Antonio, Austin, Dallas, Houston, and Fort Worth. If you are outside Texas, you cannot open a Frost Bank account in person, and Frost's online account options are also limited to Texas residents. Texas residents seeking the best CD rates should also compare Frost against online banks available nationwide.

Frost Bank CD Rates 2026 — Terms, APYs, and How They Compare

Frost Bank CD rates range from approximately 2.00% to 3.75% APY in June 2026. Frost is a Texas-only regional bank with strong brand loyalty in its home market — but its CD rates sit below what online banks like Ally, Marcus, and Capital One 360 consistently offer. For Texas residents who value in-person banking relationships and prefer keeping funds local, Frost is a reasonable option. For those prioritizing rate, online alternatives deliver more.

Rates shown are as of June 2026 and change frequently. Verify the current rate at frostbank.com before opening an account.

Frost Bank CD Rates by Term (June 2026)

Term	Approximate APY
3 months	2.00–2.50%
6 months	2.50–3.00%
12 months	3.00–3.50%
18 months	3.00–3.50%
2 years	2.75–3.25%
3 years	2.50–3.00%
5 years	2.25–2.75%

Frost periodically offers promotional CD specials — particularly at year-end — that can push rates closer to 3.75% on select terms. Check with your local branch or frostbank.com for current offers.

How Much Can You Earn?

On a $10,000 deposit at Frost’s approximate 12-month rate of 3.25% APY:

After 12 months: ~$10,325 ($325 in interest)
After 2 years (2-year CD at 3.00% APY): ~$10,609 ($609 in interest)

Compare to a top online bank (Ally) at 4.50% APY on the same 12-month CD:

After 12 months: ~$10,450 ($450 in interest)

The difference over 12 months is approximately $125 on $10,000 — meaningful but not dramatic at this balance. At $50,000, the difference is roughly $625 per year — a more compelling reason to consider an online alternative.

Early Withdrawal Penalties

Term	Penalty
12 months or less	90 days of interest
More than 12 months	180 days of interest

If you need funds before maturity and break a Frost 12-month CD at 3.25% APY after 6 months with $10,000, you’ve earned approximately $163 but forfeit 90 days’ worth (~$81). Net return: approximately $82 for 6 months — a modest positive outcome compared to banks with steeper penalties.

Frost vs. Online Banks (Texas Residents)

	Frost Bank	Ally Bank	Capital One 360	Marcus
Best 12-month APY	~3.25%	~4.50%	~4.45%	~4.45%
In-person branches	Yes (Texas only)	No	No	No
Minimum deposit	$1,000	$0	$0	$500
No-penalty CD	No	Yes	No	No
FDIC insured	Yes	Yes	Yes	Yes

For Texas residents, Frost’s branch presence is its primary competitive advantage over online banks. If you regularly use Frost for checking, depositing cash, or in-person service, keeping CDs at Frost simplifies your banking. If you’re willing to manage savings online and transfer funds via ACH, online banks offer substantially better rates.

Frost’s Relationship Banking Advantage

Frost is well-regarded for personal service in Texas. Long-time customers may benefit from relationship-based rate discussions — particularly for larger CD balances. If you hold $50,000 or more and have an established Frost relationship, it’s worth asking a branch banker whether relationship pricing is available, as this can sometimes close the gap with online bank rates.

CD Renewal at Frost

Frost CDs automatically renew at maturity at the then-current rate for the same term. The grace period is 10 calendar days after maturity. Set a calendar reminder 30 days before maturity to compare Frost’s renewal rate against current online bank offers.

Who Should Open a Frost Bank CD?

Best for:

Texas residents who bank primarily with Frost and want to keep savings consolidated
Savers who prefer in-person service and branch access in Texas markets
Retirees or near-retirees who value the personal relationship over the rate difference

Consider alternatives if:

Maximizing yield is your primary concern (online banks are 1.00–1.25% APY higher)
You’re outside Texas (Frost is not available)
You want no minimum deposit or a no-penalty CD option

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