The Best Fixed Annuity and CD Rates in Texas (May 2024)

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Embarking on the financial journey across the expansive terrain of Texas, from the bustling metropolises of Houston and Dallas to the historical richness of San Antonio, the entrepreneurial spirit of Austin, and the cultural melting pot of Fort Worth can be as rewarding as it is complex. This comparison guides shopping and compares the best CD rates, high-yield savings account rates, money market rates, and fixed annuity rates across the Lone Star State. Whether you’re banking with large institutions, community-based credit unions, or leveraging the accessibility of online platforms, we aim to help you identify the highest yields available to grow your savings. With this guide, you will be able to decipher the various interest rates in Texas and learn how to use them to your advantage, ensuring your financial growth doesn’t merely survive – it thrives.

Our Favorite Rates To Grow Your Money

TermSavings AccountInstitutionAPY
N/AMoney Market AccountUncle Credit Union5.23%
N/ASavings AccountNexBank5.26%
12 MonthsCDBread Savings5.25%
5 YearsFixed AnnuityWichita National6.30%

Disclaimer: This is a comparison review. The Annuity Expert is not associated with a bank or credit union. We aim to help you find the highest interest rates for your savings. We may receive a small referral fee if you purchase something using a link in this guide.

The Best Fixed Annuity Rates In Texas

A fixed annuity is an insurance contract that offers a guaranteed rate of return over a specified period. The funds invested in a fixed annuity grow tax-deferred, and the investor receives a steady income in retirement.

Disclaimer: I may receive a small referral fee if you purchase something using a link in this guide.

The Best CD Rates In Texas

CDs are deposit accounts offered by banks and credit unions. They offer a fixed rate of return over a specified term, and the funds are insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA).

3-Month CD Rates

Banks and credit unions have the highest CD rates for three months.

Best 3-Month CD RatesRateTermMinimum
NexBank4.75% APY3 Months$250,000.00
Total Direct Bank5.51% APY3 Months$25,000.00
Peoples Bank5.30% APY3 Months$500.00

6-Month CD Rates

The following banks and credit unions have the highest CD rates for six months.

Best 6-Month CD RatesRateTermMinimum
Inova Federal Credit Union5.50% APY6 Months$200.00
My eBanc5.51% APY6 Months$50,000.00
Newtek Bank5.55% APY6 Months$2,500.00

1-Year CD Rates

The following banks and credit unions have the highest CD rates for 12 months.

Best 12-Month CD RatesRateTermMinimum
NexBank5.40% APY12 Months$250,000.00
State Bank of Texas5.40% APY12 Months$50,000.00
My eBanc5.41% APY12 Months$50,000.00

2-Year CD Rates

Banks and credit unions have the highest CD rates for 24 months.

Best 2-Year CD RatesRateTermMinimum
Crescent Bank5.00% APY24 Months$1,000.00
Eastman Credit Union5.40% APY24 Months$100,000.00
NexBank4.80% APY24 Months$10,00.00

3-Year CD Rates

Banks and credit unions have the highest CD rates for 36 months.

Best 3-Year CD RatesRateTermMinimum
Credit Human4.65% APY36 Months$500.00
Hughes Federal Credit Union4.97% APY36 Months$99,000.00
Lafayette Federal Credit Union4.52% APY36 Months$500.00

4-Year CD Rates

The following banks and credit unions have the highest CD rates for 48 months.

Best 4-Year CD RatesRateTermMinimum
Eastman Credit Union4.65% APY48 Months$1,000.00
NexBank4.45% APY48 Months$10,000.00
Credit Human4.65% APY48 Months$500.00

5-Year CD Rates

Banks and credit unions have the highest CD rates for 60 months.

Best 5-Year CD RatesRateTermMinimum
First National Bank of America4.55% APY60 Months$1,000.00
Eastman Credit Union4.75% APY60 Months$100,000.00
Virginia Credit Union4.48% APY60 Months$100,000.00
Best And Highest Cd, Annuity, Savings, Money Market Rates In Texas (Tx)

Tax Considerations for Fixed Annuities and CDs in Texas

It’s essential to consider the tax implications of your investment options when comparing the best-fixed annuity rates with the best CD rates in Texas. This is because Fixed annuities grow tax-deferred, which means you won’t pay taxes on your investment until you withdraw the funds. On the other hand, CDs are taxed annually on the interest earned.

Tips For Comparing Fixed Annuity Rates With CD rates In Texas

If you’re considering investing in a fixed annuity or a certificate of deposit (CD) in Texas, there are several factors to consider when comparing the rates of each investment option. Here are some tips to help you compare fixed annuity rates and CD rates in Texas:

  1. Consider the rate of return: Fixed annuities generally offer a higher rate of return than CDs.
  2. Length of the investment: Fixed annuities have a longer investment term than CDs, with some contracts lasting as long as 20 years or more. On the other hand, CDs have a shorter investment term, typically six months to five years.
  3. Access to funds: With a fixed annuity, you may be penalized for early withdrawal, and it may take several years to access your funds. CDs, on the other hand, offer early withdrawal options, but the penalties can be significant, and the rate of return may be lower.
  4. Tax considerations: Consider the tax implications of each investment option. Fixed annuities grow tax-deferred, which means you won’t pay taxes on your investment until you withdraw the funds. On the other hand, CDs are taxed annually on the interest earned.
  5. The reputation of the financial institution: When comparing rates, it’s essential to consider the reputation and stability of the financial institution offering the investment. Choose a reputable bank or credit union that the FDIC or the NCUA insures.
  6. Investment goals: Consider your investment goals and risk tolerance. If you’re looking for a low-risk investment option, both fixed annuities and CDs may be suitable. However, if you’re looking for a higher rate of return, a fixed annuity may be the better option.
  7. Seek professional advice: Consider seeking professional advice from a financial advisor or tax professional to help determine which investment option is best for your financial situation.

Considering these factors, you can make an informed decision when comparing fixed annuity rates and CD rates in Texas.

Next Steps

We hope this guide has provided helpful information about Texas’s best-fixed annuity and CD rates. As we’ve explored, there are benefits to each option, and it’s essential to be mindful of your individual goals and needs when making a retirement savings plan. You want to ensure that your retirement investments are safe and provide good returns on your money. Whether you choose an annuity or a CD for your financial needs, we hope that this comparison provided enough insight for you to feel confident about your choices.

If you have any further questions about how a fixed annuity works in TX or if you’d like more information, please get in touch with us for a quote. No matter where you’re in retirement planning, we understand the importance of making informed decisions and will be here with all the help and answers you need.

The Best Fixed Annuity And Best Cd Rates In Texas (Tx)

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Disclaimer: I may receive a small referral fee if you purchase something using a link in this guide.

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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