Frost Bank (TX) 12-Month CD Has New Rate-Leading APY

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Deal Summary: CDs – 12-month, (1.20% APY), 24-month (1.84% APY), $100k minimum deposit

Availability: 28 Texas counties

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).

APYMINMAXINSTITUTIONPRODUCTDETAILS
2.00*%$100k-Frost Bank24 Month CD
OTHER TIERS: 1.65% $1k - $100k
1.70*%$100k-Frost Bank12 Month CD
OTHER TIERS: 1.40% $1k - $100k
Rates as of June 24, 2022.

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.

Availability

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.

Bank Overview

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.

Related Pages: Corpus Christi CD rates, Houston CD rates, Dallas CD rates, Waco CD rates, Victoria CD rates, Odessa CD rates, Austin CD rates, Harlingen CD rates, San Antonio CD rates, 1-year CD rates

Comments
AnnaDelvey
  |     |   Comment #1
About two weeks ago, I took advantage of the Frost Bank 1 year CD rate (1.1% at the time) with only a 30 day penalty if/when I make an early withdrawal. As Ken stated, you can open a savings and checking account online (which I recommend you do first) but you have to go in person to open a CD. And it’s easiest and best to have the CD funds already sitting in the newly opened Frost checking or savings account so you can open and fund the CD when you come in to the branch in person to open the CD. So, it’s kinda of a hybrid of online and in person experience. I am lucky in that there is a Frost branch about 15 minutes drive away from my humble abode. When the CD matures or if I call for any early withdrawal, all I need to do is call them (old fashioned phone call) and they will push the CD funds into either my savings or checking account that day. If I decide to pull the funds out to fund a CD someplace else, I can use an ACH pull (initiated from my account at Ally) to transfer the funds to Ally using the Ally one day ACH process. (A past post at DepositAccounts shows how Ally account owners can qualify for one day, free ACH transfers.)
Overall, I am pleased with my experience with Frost Bank. So pleased, in fact, that I’ve decided to move all my everyday banking activities from the evil, incompetent, don’t give a **** about their customers, high staff turnover J.P. Morgan Chase bank to Frost.
When I kindly informed my local Chase branch manager that I was severing my 19 year relationship with them, she just shrugged her shoulders and said, with no real emotion, “we’re sorry to see you go”. Somehow, I don’t think she really meant it. She’ll probably be moved to another branch in 3 months anyway.
Oh vey!!
Frost Bank (TX) Has Rate-Leading 12-Month CD
Deal Summary: 12-month CD, 1.04% APY, $100k minimum deposit

Availability: 28 Texas counties

Frost Bank (Frost) is currently offering competitive rates on three short-term jumbo CDs: 180-day (0.64% APY), 12-month (1.04% APY), and 24-month (1.51% APY). The minimum opening deposit to earn the stated rates is $100k. All three CDs can also be opened with a $1k minimum deposit, but those rates are less competitive, as they range from 14 to 31 bps lower.

As stated in the CD Account Schedule of Fees document,...

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Frost Bank's Online Checking Account

Update 10/21/2010: Rates have fallen. Refer to the bottom of the post for the rate history.

Frost Bank has started a new online checking account called Momentum Checking. It has a yield of 2.80% APY for balances between $15,000 to $150,000. There's a 3-month intro rate of 2.76% for balances under $15,000. Afterwards the rate falls to 0.01%. There are no monthly service charges. The minimum deposit is $1.

Debit card usage can increase the rate, but not by much. An additional 0.05% will be paid for every 10 debit card purchases...



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