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If you live in Texas, you'll want to bank with a financial institution that does business there. We reviewed national and local financial institutions to find the best banks in Texas. We focused on minority depository institutions when reviewing local banks and credit unions. We also considered online banks for our top pick for savings accounts. We selected Ally, Bank of America, Rally Credit Union, and GECU as our top picks for Texas residents.
These banks have remained our best banks for Texas for the last few months because they continue to stand out for their unique accounts and impressive features. Learn more about our top picks below.
Overview of Banking in Texas
When deciding who you want to bank with, you'll want to consider whether you want a national bank or a local bank. National banks, which can include online banks, might offer stronger rates and more services. However, local institutions, especially credit unions, are more likely to give back to your specific community and might provide more personalized customer service.
Top Banks in Texas
- Ally: Best for opening a savings account
- Bank of America: Best for opening a checking account
- Rally Credit Union: Best local institution, tied
- GECU: Best local institution, tied
The highest-rated banks in Texas have bank accounts that are FDIC- or NCUA-insured. Bear in mind your money is safe at a federally insured financial institution. When a financial institution is federally insured, up to $250,000 per depositor is secure in a bank account.
Compare the Best Banks in Texas
no monthly service fee
4.00%
$0
- High APY
- No minimum opening deposit
- No monthly service fees
- Savings buckets help you save for different goals
- Surprise savings transfers help you save extra money from your checking account
- No physical branch locations
- No way to deposit cash
The Ally High Yield Savings Account is a great option for anyone who wants savings tools to help save for specific financial goals, or prioritizes an account that doesn't charge standard bank fees.
Ally Savings Account- Create separate savings buckets in a savings account
- Link to your Ally checking account and enroll in surprise savings transfers to have extra money transferred to savings three times per week
- Interest compounded daily, paid monthly
- FDIC insured
$12 monthly service fee
None
$100
$300
- Multiple ways to waive monthly service fee
- Link to savings for free overdraft protection
- $100 minimum opening deposit
- $12 monthly service fee
- $10 overdraft fee
- $2.50 out-of-network ATM fee
- New Bank of America customers may receive a $300 bonus when you open a new eligible personal checking account online using offer code LHR300CIS, and set up direct deposit for $2,000 or more within the first 90 days of opening the account (offer expires January 31, 2025)
- Access to over 3,900 branches and 15,000 ATMs
- Waive $12 monthly service fee by doing one of the following: receive $250/month in direct deposits, keep $1,500 minimum daily balance, enroll in Preferred Rewards, or be a student under age 25
- If you use Balance Connect and link your checking account to a backup account, there's a $0 overdraft protection transfer fee
- FDIC insured
no monthly service fee
0.01% to 3.01%
$20
- High APY
- $20 minimum opening deposit
- Unlimited out-of-network ATM reimbursements if you meet qualifications
- No monthly service fees
- Overdraft protection
- Must meet qualifications to earn high APY
- $30 non-sufficient funds fee
- $1.50 out-of-network ATM fee
- Hispanic American-owned credit union
- To become a member, you'll need to live, work, or go to school in South Texas county and pay $25 to Navy Army to open a savings account OR $45 if you open a savings and checking account
- 21 branches in Texas (Corpus Christi, Aransas Pass, Beeville, Calallen, Kingsville, Portland, Rockport, Brownsville, Edinburg, McAllen, Mission, Weslaco, Pharr)
- Access to 30,000 free ATMs through the Co-Op Shared Network
- Earn 3.01% APY on balances under $25,000 by making 10 debit card transactions monthly, scheduling one direct deposit or automatic payment monthly, and enrolling in electronic email statements
- Earn 0.50% APY on balances over $25,000 if qualifications are met
- Earn 0.01% APY if requirements aren't met
- Unlimited reimbursements on out-of-network ATM fees if you meet APY requirements
- Interest compounded and deposited monthly
- Federally insured by the NCUA
no monthly service fee
0.15%
$10
- $20 minimum opening deposit
- No monthly service fees
- Need $100 in your account daily to earn APY
- Interest compounded quarterly, not daily
- Low APY compared to online banks
- Only 4 free transactions per month, then $3 per transaction
- Credit union that serves a Hispanic American community
- 27 locations in El Paso, Texas, and part of the CO-OP Shared network
- To become a member, you or a family member need to work or live in El Paso County, Dona Ana County, or Hudspeth County
- To earn APY, you need to maintain $100 in your account daily
- Interest compounded and deposited quarterly
- Federally insured by the NCUA
Best Banks in Texas FAQs
The best bank in Texas for customer service will depend on how you plan to interact with the bank. If you know you'll only be able to call the bank at odd hours, Ally's 24/7 customer service might be a solid choice for you. And if you value individualized customer service, a local credit union like GECU or Rally Credit Union might be your best bet.
There are several banks and credit unions in Texas that don't charge monthly service fees, such as Ally Bank and Rally Credit Union.
Yes, there are banks in Texas that offer good interest rates on savings accounts. We chose Ally Bank as the best bank for opening a savings account in Texas partially because of its high savings account interest rate.
Regional banks and credit unions in Texas include Rally Credit Union, GECU, and Bank of Texas.
What bank in Texas pays the most will depend on what type of account you're interested in opening. For the most part, you'll want to go with an online bank or credit union for the best interest rates in Texas.
Best Financial Institutions in Texas Reviews
The best banks and credit unions in Texas will offer strong interest rates, good perks, and low monthly fees. They'll also be accessible to Texas residents and offer many different types of bank accounts, such as money market accounts, savings accounts, checking accounts, and CDs.
Here are the best banks and credit unions in Texas as picked by Business Insider editors in 2024.
Best Bank for Opening a Savings Account
Ally is one of the Texas banks with the best interest rate on savings accounts. If you're looking for a savings account. It pays 4.00% APY, requires no minimum opening deposit, and doesn't charge monthly fees. The Ally Savings Account has online tools that help you separate your money into savings buckets.
If you previously struggled to reach customer service in the past, you may like Ally's approach — it offers 24/7 customer support over the phone and through live chat.
As an online-only bank, Ally doesn't have a direct way to deposit cash. (Although you can use direct deposit and deposit checks.) You'll have to transfer your money from another account to deposit cash.
Best Bank for Opening a Checking Account
Bank of America is matched with Chase for having the largest ATM network by a brick-and-mortar bank and has one of the largest branch networks among US banks.
Bank of America has a variety of checking account options. With the Bank of America Advantage Plus Checking Account, there are several ways to waive the monthly service fee.
Be careful of overdrawing from your account. Bank of America charges a $35 overdraft fee. While it offers overdraft protection, you'll still pay a fee if you transfer money from a savings account.
Another fee to watch out for is out-of-network ATM fees. You'll have to pay a $2.50 fee each time you use an ATM that's not from Bank of America.
Best Local Institution, Tied
Rally Credit Union is a local Hispanic American-led institution that doesn't charge monthly service fees. Hispanic American-led institutions are a type of minority depository institution. MDIs provide financial services to underserved populations.
Rally has 21 branches, and it is part of the Co-op Share Network, which provides access to over 30,000 free ATMs and 5,600 shared branch locations.
The Rally Credit Union Liberty Checking Account is an interest-bearing checking account and the bank's strongest product. It lets you earn up to Rally Credit Union Liberty Checking Account if you meet the following requirements:
- Maintain a balance under $25,000
- Make 10 debit card transactions each month
- Schedule one direct deposit or automatic payment each month
- Enroll in electronic email statements
To become a member, you need to live, work, or go to school in South Texas. You'll also need to keep at least $25 in your savings account daily to maintain membership.
Best Local Institution, Tied
GECU is an excellent choice if you're exploring local banking options.
GECU is a certified community development financial institution and Juntos Avanzamos designated credit union. It's been certified to ensure that it provides products and services that serve everyone in the community, regardless of immigration status or income.
The credit union lets you use a permanent resident card, foreign passport, or Matricula Consular as a photo ID. Instead of a Social Security number, you may share your ITIN number. Many of the best banks for immigrants do the same.
GECU offers free checking accounts and savings accounts with low minimum opening deposits. Its CDs also pay high interest rates.
To be eligible for membership at GECU, you or a family member must live in an eligible county or work for a specific employer. If you're searching for a high savings rate, other institutions may offer a better rate.
Tips for Choosing the Best Bank in Texas
Comparing Texas Bank Services and Fees
When opening a new bank account, it's important to go with a bank that offers the services you need. For example, If you're planning on doing all of your banking with one institution, you'll want to make sure they have a good savings account and checking account, at least.
At the same time, you'll want to avoid bank fees as much as possible. Check ahead of time to make sure the bank you're interested in doesn't charge monthly service fees, or at least charges easily-waivable fees. And if you're likely to accrue out-of-network ATM fees or overdraft fees, look for banks or credit unions that don't charge those fees.
Finally, if you're considering taking out a car loan, mortgage, or personal loan, you'll want to check the bank's loan rates. Credit unions frequently offer lower rates on loans than banks due to their member-owned nature. If you're planning on opening a new loan, becoming a member of a local credit union could be a good call.
Online and Mobile Texas Banking Features
Whether you're going with a bank that has in-person branches or not, you're likely to do at least some of your banking online. Check your prospective bank's mobile banking app ratings ahead of time to see if it's easy to use. And spend some time exploring its website to see if the website is clear and simple to navigate.
Texas Branch and ATM Accessibility
If you're planning on banking in person, it's important to choose a bank that has branches near where you live in Texas. Even if you're planning on using an online bank, the best banks for avoiding ATM fees are the banks that have plenty of in-network ATMs near where you live. Check ahead of time to confirm your potential bank's branch and ATM locations.
Credit Unions in Texas
As of the second quarter of 2024, the National Credit Union Association recognized just under 400 Texas credit unions. Of those, the biggest credit union in both total assets and number of members is the Randolph-Brooks Federal Credit Union. This credit union has over 60 local branches across Texas for easy branch access, serves over one million members, and has over $15 billion in total assets. The credit union's field of membership covers most of Texas, but its website doesn't list specifics on how to join.
Our two top picks for best credit unions, GECU and Rally Credit Union, are also large. Both have hundreds of thousands of members and over $4 billion in total assets as of the second quarter of 2024. Other large credit unions include Credit Human Federal Credit Union, which is a credit union anyone can join, Security Service Federal Credit Union, and American Airlines Federal Credit Union.
Banks Trustworthiness and BBB Ratings
We use ratings from the Better Business Bureau to help show how financial institutions address customer issues and handle transparency.
| Financial institution | BBB rating |
| Ally | A |
| Bank of America | A |
| Rally | A+ |
| GECU | A+ |
According to the BBB, Ally has an A grade because it has a few unresolved complaints on the BBB website.
Bank of America has an A rating due to government action against the bank.
Bank of America has been involved in three recent public controversies.
In 2023, Bank of America paid over $100 million to customers in a settlement when accused of repeatedly charging a $35 overdraft fee for the same transaction, withholding credit card rewards, and enrolling customers in credit card accounts without them knowing or authorizing it. In 2022, the Consumer Financial Protection Bureau required Bank of America to pay $225 million, claiming the bank mishandled state unemployment benefits during the pandemic.
Also in 2022, the CFPB ordered Bank of America to pay $10 million. The CFPB says that Bank of America was illegally garnishing customers' accounts.
Why You Should Trust Us: Experts' Advice on Choosing the Best Bank in Texas
To learn more about what makes a good bank and how to choose the best fit, four experts weighed in:
- Tania Brown, CFP® professional, vice president of coaching strategy at OfColor
- Roger Ma, CFP® professional and author of "Work Your Money, Not Your Life"
- Sophia Acevedo, banking editor, Business Insider
- Mykail James, MBA, certified financial education instructor, BoujieBudgets.com
Here are five questions you'll want to ask yourself when choosing a bank:
- Is it FDIC insured? If it's a credit union, is it NCUA insured?
- What does the account charge in fees?
- How can your bank grow with you?
- How accessible is it, in person or online?
- What type of security does it provide for online access?
Methodology: How Did We Choose the Best Banks in Texas?
At Business Insider, our goal is to create helpful content to help you make good decisions about your money. Every person is different, so we provide ample options so you can find the most suitable financial product or account for you. We also follow our editorial standards when writing about banks and banking products.
We research extensively to make sure that you know the standout features and limitations of a financial institution.
We looked at the top 10 biggest banks and credit unions in the state, plus state financial institutions featured in our Black-owned banks and credit unions guide and Hispanic American-owned banks and credit unions guide.
When searching for the best accounts, we homed in on those that paid high interest rates and offered unique features.
For the best credit unions, we chose institutions that provided the strongest overall banking experience: great customer service availability, easy membership requirements, and accounts with low minimum opening deposits and zero monthly fees.
See our bank account methodology to learn more about how we rate bank accounts, which includes checking accounts, savings accounts, and certificates of deposit, among other consumer deposit accounts. We rate all bank accounts on a scale of zero to five stars. The lowest rating possible is one star and it means the bank account requires significant improvement. A five-star bank account is the highest potential rating, and it shows the account is one of the strongest options possible.
Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards.
Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
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