Best CD Rates in Texas (2026): Top APYs Plus the No-State-Tax Math
Written & reviewed by Hans Goldstein, EA, independent licensed insurance producer · CA license 4273294 · NPN 20602398Admitted to practice before the IRS
Rates checked against depositaccounts.com, rbfcu.org, capitalone.com and navyfederal.org on September 24, 2026 · Updated
The best CD rates available to Texans on September 24, 2026 were about 4.35% to 4.50% APY, on nationally available online 5-year CDs and 12-month CDs (DepositAccounts). Big Texas credit unions paid less: Randolph-Brooks FCU ran 3.45% to 3.80%. Texas has no state income tax, which helps every CD, but A-rated 5-year MYGAs at roughly 5.50% to 6.05% still paid more for five-year money.
CD rates Texans can get (September 24, 2026)
| Institution | Term | APY | Minimum | Source |
|---|---|---|---|---|
| Bread Savings (online) | 5 years | 4.50% | $1,500 | DepositAccounts |
| Popular Direct (online) | 60 months | 4.50% | $10,000 | DepositAccounts |
| Marcus by Goldman Sachs (online) | 5 years | 4.35% | $500 | DepositAccounts |
| Synchrony Bank (online) | 60 months | 4.35% | $0 | DepositAccounts |
| Marcus by Goldman Sachs (online) | 18 months / 2 years | 4.35% | $500 | marcus.com |
| E*TRADE from Morgan Stanley (online) | 12 months | 4.35% | $0 | DepositAccounts |
| Capital One 360 (branches in Texas) | 11 months (special) | 4.30% | $0 | capitalone.com |
| Navy Federal CU (members) | 3 years / 5 years | 4.10%-4.15% / 3.85%-3.90% | $1,000 | navyfederal.org |
| Randolph-Brooks FCU (RBFCU) | 18-month SuperSaver | 3.65%-3.80% | $1,000 | rbfcu.org |
| Randolph-Brooks FCU (RBFCU) | 12-23 months | 3.60%-3.75% | $1,000 | rbfcu.org |
| Randolph-Brooks FCU (RBFCU) | 60-71 months | 3.45%-3.60% | $1,000 | rbfcu.org |
Texas CD tax treatment
- Federal: ordinary income, 10% to 37%, taxed every year the interest is credited.
- Net investment income tax: 3.8% if modified AGI is above $200,000 (single) or $250,000 (joint).
- Texas: none. Texas has no personal income tax.
At a 4.50% APY, a Texan in the 24% federal bracket keeps about 3.42% after tax. A Californian in the 9.3% bracket keeps about 3.00% on the same CD.
Worked example: Texas CD vs. MYGA
Texas resident, 24% federal bracket, no NIIT, $100,000 for 5 years.
| Vehicle | Rate | Value after 5 years, after federal tax |
|---|---|---|
| Best national 5-year CD | 4.50% APY | ~$118,300 |
| RBFCU 60-month certificate, $75K+ tier | 3.60% APY | ~$114,400 |
| 5-year MYGA, A-rated carrier | 5.50% (illustration) | ~$123,300 (tax paid at the end) |
When the Texas CD wins, and when the MYGA does
- CD: money needed within 1 to 2 years, money that must stay FDIC/NCUA-insured, or withdrawals planned before age 59½ (a MYGA withdrawal before then can add the IRS 10% penalty).
- MYGA: 3-to-5-year money you will not touch. The rate is higher and federal tax is deferred until you withdraw.
Fixed annuity benchmark: carriers rated A or better topped out around 5.50% to 6.05% on 5-year compound-interest MYGAs, per public carrier rate sheets, October 14, 2026. Rates vary by state, premium and carrier.
FDIC insurance in Texas
FDIC insures up to $250,000 per depositor per bank per ownership category, the same federally administered limit as every state. For deposits above $250K: spread across multiple banks, or use joint accounts (which get $500K coverage for two co-owners).
Texas credit union CDs
Texas hosts several large credit unions (compare their posted rates with the national online CDs above before you open):
- Randolph-Brooks FCU (RBFCU): San Antonio-headquartered, 1M+ members.
- Security Service FCU: San Antonio + Colorado, large membership base.
- Texas Trust Credit Union: DFW area.
- University FCU (UFCU): Austin, UT-affiliated.
Credit union deposits are NCUA-insured to $250K, structurally equivalent to FDIC.
Related Texas guides
- Texas CD vs MYGA detailed comparison
- Best Texas MYGA rates (2026)
- Texas MYGA no-state-tax strategy
- Texas guaranty fund
Texas CD rates: FAQ
What is the best CD rate in Texas right now?
Texans can open nationally available online CDs, so the best rates are national: about 4.35%-4.50% APY on the top 5-year CDs and around 4.35% on widely available 12-month CDs, per DepositAccounts on September 24, 2026. Local credit unions pay less; RBFCU's certificates ran 3.45%-3.80% APY the same day.
Are CDs taxed in Texas?
Not by the state. Texas has no personal income tax, so CD interest is taxed only federally, as ordinary income, plus the 3.8% net investment income tax above $200,000 (single) or $250,000 (joint) of modified AGI.
What does RBFCU pay on certificates?
As of September 24, 2026, Randolph-Brooks FCU paid 3.60%-3.75% APY on 12-23 month certificates, 3.45%-3.60% on 60-71 months, and 3.65%-3.80% on its 18-month SuperSaver certificate, depending on balance ($1,000 minimum; top tier $75,000+).
Is a MYGA better than a CD for Texas residents?
For money you will not touch for 3-5+ years, usually. On October 14, 2026 A-rated-or-better insurers paid roughly 5.50%-6.05% on 5-year MYGAs, versus 4.35%-4.50% on the best 5-year CDs. With no state tax, the gap is mostly the rate plus federal tax deferral. On $100,000 over 5 years (24% bracket) a 5.50% MYGA ends about $5,000 ahead of a 4.50% CD after federal tax.
Who protects a MYGA in Texas?
The issuing insurer, backed by the Texas Life and Health Insurance Guaranty Association up to its limits. CDs are covered by FDIC or NCUA insurance up to $250,000 per depositor, per ownership category.
Hans Goldstein is an independent licensed insurance producer (CA license 4273294, NPN 20602398) and is not affiliated with any bank or credit union named. Rates are copied from the sources named, as of the date shown; confirm the current rate before opening. MYGA figures are illustrations, not quotes.
Frequently asked questions
What is the best 1-year CD rate in Texas?
As of mid-2026, top 1-year CDs available to Texas residents pay 4.50-4.85% APY, led by online banks (Marcus, Ally, Synchrony, Capital One) and Texas-based credit unions (RBFCU, Texas Trust).
Are CDs taxed differently in Texas?
Texas has no state income tax, so CD interest is taxed only at the federal level. This is a roughly 5-10% effective tax advantage versus residents of California, New York, or other high-tax states.
Are Texas credit union CDs better than bank CDs?
Texas credit unions (Randolph-Brooks FCU, Texas Trust, Security Service FCU) sometimes offer 10-30 bps higher APYs than national bank averages, but membership requirements apply. NCUA insures up to $250K, equivalent to FDIC.
Should I buy a CD or a Treasury bill in Texas?
Without state tax, the Treasury advantage shrinks. In Texas, a 4.85% CD genuinely beats a 4.30% Treasury after federal tax (Treasury's state-tax exemption is worthless without state tax). For under-1-year horizons, the highest yielding option wins on simple math.
Is the Texas CD market competitive?
Yes. Texas is large enough to host strong credit union competition and national online banks all aggressively advertise here. The top APYs available to Texas residents are typically within 5-10 bps of the national peak.
What's the FDIC limit on Texas CDs?
Standard FDIC: $250,000 per depositor per bank per ownership category. Same as every state. Split across multiple banks for deposits over $250K.
Are jumbo CDs ($100K+) worth it in Texas?
Jumbo premium has compressed to 0-15 bps in 2026. For deposits over $100K, a MYGA (A-rated 5-year MYGAs paid about 5.50% to 6.05% on October 14, 2026, per public carrier rate sheets) typically beats a jumbo CD by 75+ bps even after the MYGA surrender lock-up.
Disclosure
This guide reflects publicly available rate, tax, and state-guaranty-fund information as of the date stated above. MYGA rates, CD rates, state tax brackets, and guaranty-fund limits change frequently. Always confirm current values against the most recent carrier disclosure, bank rate sheet, and your state guaranty association's official website before purchasing. This article is general information for educational purposes; it is not a personalized recommendation, solicitation, or offer of any specific product, and is not tax advice. Hans Goldstein is an independent licensed insurance producer (NPN 20602398) appointed with multiple A-rated carriers; appointment status with any specific carrier discussed may vary. No compensation has been received from any carrier or bank in connection with publication of this review. Always read the actual contract and consult a licensed advisor and tax professional before purchasing any annuity or CD. AM Best ratings, state tax law, and IRC tax treatment are subject to change.