Texas Deposit Account Rates and Deals

First Community Credit Union of Houston is offering a high-yield reward checking account called First Rewards Checking. The account has the following rates and features if certain monthly requirements are met:

• 3.01% APY on balances up to $20,000
• 1.01% APY on portion of balances over $20,000
• 0.01% base rate if requirements are not met
• Nationwide ATM fee refunds

Monthly requirements include:

• 12 debit card purchases
• 1 direct deposit
• Receive e-statements

Other features of the account include:

• $25 minimum opening deposit
• No minimum balance required
• Free bill pay requires using bill pay at least once a month

Credit union membership is open to those who live or work in Harris or Fort Bend County, Texas. Please refer to the credit union's eligibility page for the full details. Membership requires a $5 minimum balance in the primary savings account.

Most of the credit union's branches are located on the west side of Houston.

The credit union's ratings for safety and soundness are average: 3 stars (adequate) at BauerFinancial (based on 12/31/09 data) and 3 stars (performing) at Bankrate.com (based on 9/30/09 data). The credit union is federally insured by the NCUA (Charter # 66818).

Other Reward Checking Accounts

This rate and balance cap at this Houston credit union are a little below average for reward checking. It seems like institutions in large cities tend to have reward checking rates lower than average.

To find nationally available reward checking accounts and reward checking accounts in your local area, please refer to the reward checking section of DepositAccounts.com.

Update 3/18/2010: These CD specials no longer appear to be listed at the credit union's website.

United Heritage Credit Union is offering three competitive CD specials:

• 2.30% APY 15-month CD
• 2.60% APY 30-month CD
• 3.25% APY 54-month CD

Minimum deposit is $1,000. These specials are listed in the credit union's promotions page as of 3/16/2010.

These specials used to be limited to IRAs, but the special was recently changed to regular CDs.

United Heritage used to offer a reward checking account called Heritage Checking. They stopped offering new accounts about a year ago, but those who had signed up for it continue to earn 3.01% APY on balances up to $25K. According to a credit union rep, they're in the process of a new design and rollout for the Heritage Checking account, and it should be relaunched in May 2010.

Another interesting account that I just noticed is the Independence Account which looks like a 30-month add-on CD. However, it's in the savings account category. I've emailed the credit union asking about the withdrawal limitations and if it's a fixed-rate account. The rate table lists a yield of 1.99% APY on balances over $10K as of 3/16/2010. Update 3/17/2010: I received the following info from United Heritage about the Independence Account:

The Independence Account is a 30 month term with a variable rate. The funds will be locked in for the term period and any withdrawals before the maturity date will result in a penalty fee. The penalty we may impose will be the forfeiture of 6 months of dividends calculated using the dividend rate in effect at the time you request the withdrawal.

Credit union membership is open to those who live, work or attend school in Travis, Williamson, Bastrop, Caldwell, Hays, Smith or Wood County, Texas. You can also be eligible via family or select employer groups. Refer to the credit union's Eligibility Page for more details. Membership requires a minimum balance of $1 into the savings account.

Branches are located in Austin, Cedar Park, Georgetown and Round Rock in Central Texas and in Tyler in Northeast Texas.

The credit union's ratings for safety and soundness are strong: 4 stars (excellent) at BauerFinancial (based on 12/31/09 data) and 4 stars (sound) at Bankrate.com (based on 9/30/09 data). The credit union is federally insured by the NCUA (Charter # 68251).

NexBank continues to offer its Triple Advantage CD. However, the rate has fallen 40 basis points since February. The rate is now 2.00% APY for a 2-year term as of 3/14/2010. Nevertheless, this is a competitive rate for an add-on CD. Additional deposits of $10,000 or more are allowed anytime. There's also a bump feature which is typically less useful. It allows customers to bump-up the rate once per a 12-month period to the rate of NexBank's current 24-month CD offering. Minimum initial deposit is $10,000.

The 2.00% APY is not the best for 2-year terms. But the add-on feature is nice to hedge against the risk that rates will stay low or go lower in the next year. When your CDs mature, you can always rely on the add-on CD.

The bank used to have an online application, but I no longer see the application link. The application used to allow anyone from Texas to apply. If you're interested in this CD, you should call the bank's toll-free number (1-800-827-4818). Branches are located in Dallas and Plano, Texas.

NexBank's ratings for safety and soundness continue to be a little weak: 2 stars (problematic) at BauerFinancial (based on 12/31/09 data) and 2 stars (below peer group) at Bankrate.com (based on 9/30/09 data). The bank has been a FDIC member since 1934 (FDIC Certificate # 29209). Another thing to note about this bank is that it's operating under a FDIC Cease and Desist Order.

Other Competitive Certificate of Deposit Rates

• CD rates at DepositAccounts.com
• My weekly list of hot nationwide and local CD deals

BBVA Compass Bank is offering another bonus of up to $150 for opening a new checking account, using online bill pay and direct deposit. Here's the promotion page link. It's not as good as the January promotion since the $150 is not all cash. $50 of the bonus is a hotel gift card. Here are the important details of this new promotion:

• Open a new Build-to-Order checking account online by 3/31/2010 (small print says 3/31 even though headlines say 4/30)
• $100 cash when you establish a recurring payroll direct deposit by 04/30/2010
• $50 hotel gift card when you pay at least one bill for at least $25 to an unrelated third party via online bill pay by 04/01/2010

Note, according to the small print, the $50 hotel gift card is also available for existing BBVA Compass checking customers who haven't used online bill pay in the last 90 days. I don't know the "true" value of the hotel gift card. It can only be used for hotels booked at www.myhotelgiftcard.com and requires a two night minimum stay.

Requirements for Opening Compass Bank Accounts:

• Must be a U.S. Citizen
• Have a permanent residence within a state where BBVA Compass has a banking center (Alabama, Arizona, California, Colorado, Florida, New Mexico, or Texas) and your permanent residence must be located in close proximity to a BBVA Compass banking center.

BBVA Compass now has branches in California after its acquisition of the failed Guaranty Bank last August. However, these branches may not be transitioned over yet to allow people to qualify for these Compass promotions. If you're in California and interested in this promo, it may be worth a call to Compass.

BBVA Compass Checking Accounts

I completed a Compass checking promotion in 2006 and received the promised $50 gift card without any problems. One downside is that I did received two hard credit inquiries by Transunion.

The Build-to-Order Free Checking comes with some basic features. Two additional premium features are allowed without cost. The notable basic feature is no minimum balance or direct deposit requirement. Also, bill pay is free. The notable premium feature for those who want to make extra money is a $25 anniversary cash bonus. One feature that is lacking is free checks. A reader in a previous Compass post mentioned that the first order of checks is free.

The disclosure has some of the details of $25 anniversary cash bonus feature. I switched my Compass checking account to this Build-to-Order Free Checking in December 2007 and chose the $25 anniversary cash bonus as one of my premium features. Then I set up small monthly ACH debits from my online bank account to keep the checking active. I received the $25 bonus for both 2008 and 2009.

BBVA Compass Bank is a member FDIC (FDIC Certificate # 19048).

Credit for this find goes to this iBankDesign thread.

Other Bank Bonuses

To find other bonus deals, please refer to my best bank bonuses page which has all of my recent bank bonus posts.

BancorpSouth Bank continues to offer a high-yield reward checking account called Performance Checking. I first reported on this account in May 2008. The rates have fallen a bit, but it remains competitive, and it has a higher-than-average balance cap of $30K. Another thing nice about this bank is that it's large with 289 offices throughout the Southeast. So if you're looking for a local reward checking account, a BancorpSouth branch may be nearby.

The rates are not easy to find at the bank's website. The only place I found the rate was at the start the online application (link to application located at this BancorpSouth page). You first have to select the state and the city of your home branch. The next page has links for each account, and you can click on the link for the Performance Checking to see the rate. It does vary based on your city. I've checked a few cities, and here are the two rates as of 3/11/2010:

• 3.25% APY up to $30K for Baton Rouge, LA & Tyler, TX
• 3.00% APY up to $30K for Destin, FL & Huntsville, AL

Please leave a comment about the rate if you check your city. The Performance Checking account has the typical reward checking features such as debit card usage (12 per month). Refer to this BancorpSouth page or my BancorpSouth checking review for more details.

Performance Savings Account

One thing that has been added since my 2008 post is a high-yield savings account. This also has the Performance name. The Performance Savings has a 1.50% APY (as of 3/11/2010) for all balances if the following two requirements are met:

• Transfer at least $50 into your Performance Savings account each interest cycle electronically via ACH or Internet Banking Transfer.
• Combine your Performance Savings statement with your BancorpSouth Checking account statement (you will no longer receive a separate statement for your Performance Savings account).

If these requirements are not met, the rate falls to the standard rate of 0.15%. This does require the Performance Checking account, but unlike other reward checking/savings combos, you don't have to meet the reward checking requirements to qualify for the bonus rate.

The Performance Checking and Savings accounts provide a nice alternative to savings accounts at internet banks, many of which now have rates of 1.25% or less.

Online Application and Branch Locations

As I mentioned above, there's an online application for both these accounts at this BancorpSouth page. The application makes it appear that you have to live near a branch to qualify. Most of BancorpSouth branches are located in Mississippi, Alabama, Tennessee, Arkansas and Louisiana. There are also a few in East Texas, the Florida Panhandle and in the Springfield and St. Louis metro areas of Missouri.

Financial Overview

BancorpSouth's ratings for safety and soundness are strong: 4 stars (excellent) at BauerFinancial (based on 12/31/09 data) and 4 stars (sound) at Bankrate.com (based on 9/30/09 data). The bank has been a FDIC member since 1934 (FDIC Certificate # 11813).

Thanks to the reader who emailed me news of this reward checking account.

Other Reward Checking Accounts

As I mentioned above, BancorpSouth is a large bank with 289 branches, $13.2 billion in assets and $10.6 billion in deposits. There are not many other large banks offering reward checking accounts. I recently reviewed a few large banks offering reward checking, but I forgot about BancorpSouth which happens to be larger than the ones I mentioned in that post.

To find nationally available reward checking accounts and reward checking accounts in your local area, please refer to the reward checking section of DepositAccounts.com.

HCSB in Texas is now offering its reward checking account nationwide. I first mentioned this account in this February review. At that time, I was told they required a branch visit to open the account. However, I was just informed by one of their banking reps that they now have the application at CheckingFinder.com and it shows up for any zip code. I have more details in my February review.

At 3.51% APY for balances up to $25K (as of 3/09/2010), HCSB's reward checking rate isn't the best. However, the rate for balances over $25K is above average at 1.51% APY. If you look at the interest that would be earned on a $100K balance, it comes out to be about $2,000 which would be equal to a blended APY of around 2%.

It's important to note that HCSB is a relatively small bank with $321 million in deposits (based on 12/31/09 FDIC data). Like many small banks in the past, HCSB may decide to restrict availability. If you see that the account no longer shows up for your zip code at CheckingFinder.com, please leave a comment.

Also note, don't confuse HCSB in Texas with the banking giant HSBC.

High-Yield Reward Checking Account Resources

• reward checking overview
• math behind reward checking accounts
• reward checking accounts with a history of high rates
• Reward checking accounts (tables include both local-only and nationwide)

Velocity Credit Union is offering a new CD special with a 1.76% APY for a 9-month term. Minimum deposit is $5,000. It's available as a regular or IRA certificate (1-year term). The special is listed on the credit union's home page as of 3/02/2010. According to this promo page, the special is scheduled to last through 3/15/2010.

Last month Velocity's CD special was a 2.02% APY 15-month CD. The 1.76% APY may seem low even for a short-term CD, but I'm afraid it's very competitive for 9-month CDs. As a comparison, the best 9-month CD yield currently listed at Bankrate is 1.44% APY at Nexity Bank.

There's an online application for membership and account opening via Andera, a common service used for account opening. In the application page that covers eligibility, the bottom of the page states "None of the above apply. I would like to join one of the following organizations." In the select box, Paramount Theater Association is the only one included. There's a $15 fee to join this association, and it appears to be open to all.

In addition to Paramount Theater Association members, credit union membership is open to those who live or work in one of the following Texas counties: Travis, Williamson, Hays, Bastrop or Caldwell. Please refer to their Eligibility Page for the full details. Membership requires a minimum $5 deposit into the savings account.

Branches are located in Austin and Round Rock, Texas.

The credit union's ratings for safety and soundness are above average: 4 stars (excellent) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both ratings are based on 9/30/09 financial data. The credit union is currently federally insured by the NCUA (Charter # 68359).

Velocity Will Retain NCUA Deposit Insurance

Members no longer have to worry about losing federal deposit insurance at Velocity Credit Union. The credit union was on the verge of switching from federal to private ASI deposit insurance. The management and the board were able to convince the members to vote for it in late December. Then the ASI instituted an assessment on its credit unions similar to what the NCUA had done. The cost savings was one of the main reasons for the switch. Even though this specific assessment wasn't going to affect Velocity, it was enough to make the board and management change their minds, and they decided to stay with NCUA deposit insurance. Refer to my last Velocity post for more details.

Texas Advantage Community Bank is offering two very competitive CD specials: a 3.00% APY 30-month CD and a 2.10% APY 13-month CD. These are only for new money or existing checking account holders. Maximum deposit is $99,000 per CD. This promotion doesn't seem to be listed at the bank's website. A reader emailed me a scan of the bank's ad that was in a local newspaper yesterday (2/28/2010). The scan of the ad is available here. According to the ad, the offer ends on 3/15/2010.

It appears that a branch visit is required to open an account. Branches are located in the Texas cities of Pearland and Alvin which are between Houston and Galveston.

The bank's ratings for safety and soundness are fair: 3½ stars (good) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both ratings are based on 9/30/09 financial data. The bank has been a FDIC member since 2006 (FDIC Certificate # 58450).

Special thanks to the reader who emailed me the news and scan of this CD promotion.

Pioneer Bank in Dripping Springs Texas is offering a high-yield reward checking account called Pioneer High Yield Checking. The account has the following rates and features as of 2/28/2010 if certain monthly requirements:

• 3.51% APY for balances up to $25,000
• 1.25% APY for portion of balance over $25,000
• 0.05% base rate if requirements are not met
• Refunds of ATM fees

Monthly requirements include:

• 10 check card purchases
• 1 direct deposit or automatic withdrawal
• Receive e-statements

Other features of this account include:

• $100 minimum initial deposit
• No monthly fees
• No minimum balance requirement

There's an online application at the bank's micro-website. However, it implies that you must come in to a branch location to complete the application process.

It's a small bank with one office located in Dripping Springs, Texas which is just south of Austin.

The bank's ratings for safety and soundness are strong: 4 stars (excellent) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 9/30/09 financial data. The bank has been a FDIC member since 2007 (FDIC Certificate # 58577).

Other Reward Checking Accounts

There are still nationwide reward checking accounts paying 4% (see post) and a few local accounts paying over 5% (see post). However, rates under 4% are becoming more common, and anything at 3% or above is a decent deal for reward checking rates.

To find nationwide reward checking accounts and reward checking accounts in your local area, please refer to the reward checking section of DepositAccounts.com.

American Bank of Commerce is offering a competitive 2-year CD yield of 2.32% APY. Minimum deposit is $1,000. This CD rate isn't listed at the bank's website. A reader emailed me news of this, and I just contacted the bank for additional details. The CSR didn't know how long this rate would last. It has been this rate since January. According to the CSR, this rate is available at all of their branches. The early withdrawal penalty is 90 days of interest.

A branch visit is required to open an account. Branches are located in Texas cities of Austin, Lubbock, Mansfield, Plano and Wolfforth, and in the Colorado cities of Pueblo and Colorado Springs.

The bank's ratings for safety and soundness are a little mixed: 3½ stars (good) at BauerFinancial and 2 stars (below peer group) at Bankrate.com. Both ratings are based on 9/30/09 financial data. The bank has been a FDIC member since 1962 (FDIC Certificate # 18609).