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With market volatility and uncertain economic forecasts, many Texans are looking for secure places to grow their savings. Certificates of Deposit (CDs) offer a stable option, and recently, rates have been hitting levels not seen in over a decade.

If you’re asking “Who has the highest CD rates in Texas?” this guide is your answer so you can more easily choose a CD option that fits your needs.

Factors Influencing CD Interest Rates

Understanding what drives CD rates can help explain why some terms pay more in interest than others.

Federal Reserve Policies

The Federal Reserve’s benchmark interest rate affects what banks pay on savings products. As of May 2025, the Fed has kept rates steady in the 4.25%–4.50% range to contain inflation. As a result, banks are offering high CD rates now. If you like the current rates and want to grow your savings reliably, though, you should act now. Long-term CD interest rates may fall if the Fed indicates a plan to make cuts.

Inflation Trends

When inflation rises, the money in your savings account buys less. To stay competitive, banks often increase CD rates to make saving more attractive during those times. In March 2025, the Consumer Price Index (CPI) showed a 2.4% year-over-year increase. That level of inflation is lower than in previous years, allowing banks to keep CD rates steady at appealing levels without needing to raise them further.

Economic Growth and Outlook

A strong economy supports higher CD rates. In April 2025, U.S. employers added 177,000 jobs, and unemployment stayed at 4.2%. These numbers can make banks confident in offering higher yields from CDs.

Why Are Short-Term CD Rates Sometimes Higher Than Long-Term?

Some 12-month CDs currently pay more than 5-year CDs due to an inverted yield curve, a situation where short-term rates exceed long-term rates.

Here’s why:

• Banks believe rates will drop soon.
• They raise short-term rates now to bring in deposits.
• Long-term rates stay lower to reduce future interest costs.

Short-term CDs can be more rewarding in this environment, but spreading money across different term lengths is still a sound approach.

Top CD Rates in Texas – May 2025

Institution	Term Length	APY	Minimum Deposit	Notes
Greater State Bank	12 mo	4.59%	$1,000	FDIC insured. (bestcashcow.com)
Greater State Bank	24 mo	4.25%	$1,000	FDIC insured. (bestcashcow.com)
Greater State Bank	60 mo	4.15%	$1,000	FDIC insured. (bestcashcow.com)
Greater State Bank	18 or 24 mo	4.17%	$100,000	Jumbo CD. (greaterstate.bank)
Together Credit Union	12 mo	4.60%	$1,000	NCUA insured. (creditdonkey.com)
Ciera Bank	3 mo	4.30%	$1,000	Short-term CD. (finder.com)
Texas Capital Bank	3 mo	4.25%	$1,000	Competitive short-term rate. (texascapitalbank.com)
Credit Union of Texas	12 mo	4.00%	$1,000	One-year CD. (cutx.org)
Eastman Credit Union	6 mo	4.25%	$1,000	Mid-term option. (ecu.org)
Texans Credit Union	6 mo	4.25%	$1,000	NCUA insured. (texanscu.org)
University Federal Credit Union	6 mo	4.20%	$1,000	Credit union option. (ufcu.org)
Credit Human Federal Credit Union	60 mo	4.06%	$1,000	Long-term return. (credithuman.com

Tips for Maximizing CD Investments

Compare multiple institutions

Banks vary their rates by location and marketing goals. Comparing offers can help you find the best yield.

Consider CD laddering

Using a CD ladder involves splitting your savings across several CDs with different maturity dates. This approach gives you regular access to your money and helps you adjust to changing rates. For example, you can access the money from a short-term CD in just a few months, and decide from there whether to use it for your needs or reinvest in another CD to take advantage of high interest rates. Even if you choose to use your money instead of reinvest it, you have your longer-term CDs that will mature in the future, giving you security and flexibility all at once.

Align Terms with Financial Goals

Choose CD lengths that match when you’ll need your money. For short-term goals, go with a 6- or 12-month CD. For savings you won’t need soon, consider longer term options that can give your money more time to grow.

Stay Informed

Watch interest rate news and inflation reports. Economic changes affect what banks can offer. Knowing the trend can help you lock in the best current rate, and even help you decide whether you want to invest in a CD now or later on.

The Bottom Line of CD Rates

CDs remain a reliable way to grow your savings with minimal risk. Right now, banks and credit unions across Texas are offering some attractive rates. Whether you’re looking for a short-term option or a long-term savings vehicle, you can find strong value for your investment.

Among the top choices is Greater State Bank. In addition to its competitive rates, Greater State Bank stands out for its local roots, personalized service, and flexible CD options designed to meet the needs of individuals, families, and businesses across the Rio Grande Valley. We offer both standard CDs with a $1,000 minimum deposit and high-yield jumbo CDs for larger investments. All deposits are FDIC insured, and with a range of term lengths, Greater State Bank provides both security and choice for those looking to maximize their savings. Let’s talk!