Bank of South Texas Has Rate-Leading 12-Month CD


Update 12/22/23: The 12-month CD rate has fallen. Please check with Bank of South Texas for the latest rate.

Deal Summary: 12-month CD, 5.88% APY, $1k minimum deposit.

Availability: Possible nationwide availability.

The Bank of South Texas is currently offering a 12-month CD with a rate-leading 5.88% APY that may be available nationwide. (I am not 100% convinced on the “nationally available” status. See “Availability” section below.) The minimum opening deposit is $1k, with no stated balance cap.

5.88%$1k-Bank of South Texas12 Month CD
Rates as of March 4, 2024.

Early Withdrawal Penalty

As stated in the CD FAQs, the Early Withdrawal Penalty (EWP) reads as follows:

If we consent to a request for withdrawal that is otherwise not permitted you may have to pay a penalty. The penalty will be an amount equal to: On CDs up to 1 year term - 90 days interest penalty. On CDs over 1 year term - 183 days interest penalty.

Note that an early withdrawal is not guaranteed: “If we consent …” According to CSR, partial withdrawals are possible, but the principal is not protected. Should a 12-month CD be closed with 90 days of account opening, there is a $25 early closure fee in addition to the 90-day EWP.


Headquartered in McAllen, Texas, Bank of South Texas has a brick-and-mortar presence in three South Texas counties, but according to CSR, any U.S. legal resident (18 years or older) with a valid Social Security number can open an account using Bank of South Texas’ online application.

That being said, it is not uncommon for small banks to change the availability status of “nationally available” accounts and products, if the demand exceeds the bank’s ability to process a sudden influx of new accounts.

Account Opening

The 12-month CD can be opened online or at any of six full-service Texas branches located in Hebbronville, Kingsville (2), McAllen, Mission, and Pharr.

Funding and Other Details

The following information is from the Bank of South Texas CD FAQs and a conversation with CSR.

  • Funding – ACH ($25k max), wire ($10 fee), or check.
  • Ownership – Individual, joint, trust (in-branch only).
  • Interest – Compounded daily/credited quarterly and can be withdrawn penalty free.
  • Maturing Funds – Cashier’s check to address on file or internal transfer to a Bank of South Texas checking/savings account.
  • Grace Period – 10 calendar days before automatic renewal.
  • Beneficiaries – Unlimited with equal shares, Social Security numbers are not required.
  • Credit check – ChexSystems.

Bank Overview

Bank of South Texas has an overall health grade of "A+" at, with a Texas Ratio of 2.40% (excellent) based on September 30, 2023 data. In the past year, Bank of South Texas has increased its total non-brokered deposits by $6.86 million, an excellent annual growth rate of 5.29%. Please refer to our financial overview of Bank of South Texas (FDIC Certificate # 26727) for more details.

Established in 1986 as the Hebbronville State Bank, Bank of South Texas is a small, locally owned and operated community bank primarily serving the Rio Grande Valley. The State Bank of Kingsville was acquired in 2003, with the Bank of South Texas re-branch occurring three years later. Bank of South Texas is currently the 280th largest bank headquartered in Texas, with assets in excess of $163 million.

How the 12-Month CD Compares

When compared to similar length-of-term CDs tracked by which are available nationwide and have minimum deposit requirements of $10k or less, no banks or credit unions have higher rates than currently offered on the Bank of South Texas 12-month CD. The following table compares the 12-month CD to the two highest-rate CDs from other banks and the two highest-rate CDs from credit unions.

The above information and rates are accurate as of 12/19/2023.

To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.

Related Pages: Corpus Christi CD rates, Harlingen CD rates, 1-year CD rates, nationwide deals

  |     |   Comment #1
I tried to open an account online on 12/19 to purchase this CD. I kept getting an error message when uploading my DL. I spoke to CSR today who explained it is only available to Texas residents and they are in the process of updating their website. As Ken stated "it is not uncommon for small banks to change the availability status of “nationally available” accounts and products, if the demand exceeds the bank’s ability to process a sudden influx of new accounts."
  |     |   Comment #2
Yeah I asked about limits on ACHing a CD and the "Submit Question" page on the website doesn't work. What a fiasco.
  |     |   Comment #3
Called CSR today and you can only open in one of their locations, not possible to open online

The financial institution, product, and APY (Annual Percentage Yield) data displayed on this website is gathered from various sources and may not reflect all of the offers available in your region. Although we strive to provide the most accurate data possible, we cannot guarantee its accuracy. The content displayed is for general information purposes only; always verify account details and availability with the financial institution before opening an account. Contact [email protected] to report inaccurate info or to request offers be included in this website. We are not affiliated with the financial institutions included in this website.