It’s only been about three weeks since I last wrote about the Frost Bank (Frost) short-term jumbo CDs, but recent substantial increases deserve some recognition. With increases of 16 and 33 bps respectively, the 12-month now earns 1.20% APY, with the 24-month earning 1.84% APY. The minimum opening deposit to earn the stated rates is $100k. Both CDs can also be opened with a $1k minimum deposit, but those rates are less competitive but still significant: 12-month (0.98% APY) and 24-month (1.52% APY).
As stated in the CD Account Schedule of Fees document, the Early Withdrawal Penalty reads as follows,
If you withdraw any of the deposit before the maturity date, we may impose a penalty:
- Certificates issued for 30 days to one year, an amount equal to 30 days interest
- Certificates issued for more than one year, an amount equal to 90 days interest
The penalty may include a deduction from the amount of the principal.
Funding a CD can be done by ACH, wire transfer, check, or internal transfer. Simple interest is generally paid at maturity, however, it may be paid more often if deposited into another Frost account.
Maturing funds will be distributed by wire, by check to the address on file, or transferred to a Frost savings or checking account. There is a ten-day grace period before a CD automatically renews.
Headquartered in San Antonio, Texas, Frost Bank has a brick-and-mortar presence in 28 Texas counties, most of which are located in or around major metropolitan areas.
While savings, checking, and money market accounts can be opened online, opening a CD can only be done in-branch. Frost Bank currently has 164 full-service branches located in 59 different Texas cities and towns.
Frost Bank has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 1.58% (excellent) based on December 31, 2021 data. In the past year, Frost Bank has increased its total non-brokered deposits by $7.79 billion, an excellent annual growth rate of 21.97%. Please refer to our financial overview of Frost Bank (FDIC Certificate # 5510) for more details.
Established in 1889, The Frost National Bank of San Antonio was housed “in the back of a small mercantile store in San Antonio, where T.C. Frost provided Texans with the supplies they needed to prosper on the frontier.” Ninety years later, the bank began a series of 31 acquisitions, the latest of which was the acquisition of Western National Bank (Odessa) in 2014. Frost Bank is currently the fourth largest bank headquartered in Texas, with assets of nearly $51 billion and more than 770,000 customer accounts.
How the 12-Month CD Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available within the market area, no banks or credit unions have a higher rate than the rate offered on the Frost Bank 12-month CD, regardless of minimum deposit requirements. The following table compares the Frost Bank 12-month CD to the two highest-rate CDs from other banks and the two highest-rate CDs from credit unions.
How the 24-Month CD Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available within the market area, no banks or credit unions have a higher rate than the rate offered on the Frost Bank 24-month CD, regardless of minimum deposit requirements. The following table compares the Frost Bank 24-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 3/28/2022.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.