Best Texas Banks – Forbes Advisor

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The best banks in Texas offer a good mix of products and services for a variety of needs, competitive APYs, manageable account requirements, and modern tools to manage accounts. The best banks offer convenient access through large ATM networks and local branch services from the Texas Panhandle to the Rio Grande, and they score high on customer satisfaction.

The Best Banks in Texas for Branches

Texas is home to no less than 395 banking institutions, according to data from the Federal Deposit Insurance Corp., which insures bank deposits. The state’s banks represent $1.19 trillion in total assets, according to the FDIC.

The Texas markets with the largest deposit volumes are:

  • Dallas-Fort Worth-Arlington
  • Houston-The Woodlands-Sugar Land
  • San Antonio-New Braunfels
  • Austin-Round Rock-Georgetown
  • McAllen-Edinburgh-Mission

The hundreds of banks in the Lone Star State include several large national banks – Wells Fargo, Chase, Bank of America and PNC – which operate the most branches in Texas.

Banks with most branches in Texas

The Best Banks in Texas for Customer Service

You deserve the best service and support from your bank. Below are the best banks in Texas for customer service, according to JD Power’s 2022 Retail Banking Satisfaction Study. The average customer satisfaction score was 666 out of a possible 1,000 among Texas banks.

Best Banks in Texas for Customer Satisfaction

Types of Banks in Texas

If you are moving to Texas and looking to start a banking relationship, there are several types of financial institutions to choose from. As a banking consumer, you will likely choose one of the following categories.

National banks

Texas National Banks are large, well-known commercial banks that tend to have physical branches in multiple states. They offer the widest selection of banking products, including checking and savings accounts, mortgages, credit cards, and investment services. The largest national banks each hold trillions of dollars in assets.

Regional banks

Regional banks are medium-sized financial institutions that operate branches in a specific region of the United States, such as the Southwest or just the states of Texas and Oklahoma. Banks generally offer a full range of banking products to individuals and businesses. The Federal Reserve defines regional banks as those with total assets between $10 billion and $100 billion.

Community banks

The vast majority of banks in the United States are community banks serving limited areas. Most of their deposits come from the local community, and the banks focus their lending on the consumers and businesses that live there. Community banks may have fewer than a handful of branches and offer a smaller selection of banking products. A community bank holds less than $10 billion in assets, as defined by the Fed.

Online banks

Texans may choose to do their banking using online banks that are not really “Texas banks”. They have no physical bank branches and can operate virtually anywhere in the United States, with services provided through online and mobile access. Since online-only banks don’t need staff or operate physical locations, they often pass overhead savings on to customers through competitive interest rates and lower fees.

How to Choose the Right Bank in Texas

With hundreds of banks to choose from, finding the right bank in Texas is no easy task. Consider the following factors when selecting the best bank for your needs.

Accounts and services

Start by determining the type of bank account or accounts you plan to open. Find banks that offer these and other products you may want to access later.

Current bank accounts include checking accounts, savings accounts, certificates of deposit (CDs), and money market accounts. Full-service banks typically offer additional products and services such as loans, credit cards, retirement and investment accounts.

Costs

Banks often charge fees for services and for carrying out specific transactions. Sometimes you can avoid monthly service fees by following account requirements, such as maintaining a minimum balance. Other fees your bank may charge include overdraft fees, excessive withdrawals, wire transfers, out-of-network ATM withdrawals, and late payments.

Paying bank fees is an easy way to undermine interest earned on deposit accounts. Check to see if a bank charges fees or offers ways to easily waive fees before opening an account.

Interest rate

Earning higher interest rates helps consumers maximize their savings efforts. Compare banks to find the best rates. Pay attention to whether interest is earned on all balances or if you need to maintain a specific balance to get the best rates.

Traditional banks generally offer rates comparable to the national average, while online banks and credit unions tend to offer customers higher rates.

Convenience

When you deposit money in the bank, you want to be sure it’s safe and accessible when needed. Some banks limit how you can access your money. Find banks that offer convenient ways to manage and access your funds.

If you prefer in-person assistance, a local bank may be preferable, but many banks offer ways to manage accounts and withdraw or transfer funds online, through a mobile banking app or at an ATM.

Customer service

There are times when you need help from bank staff to get answers or access funds. Find a bank that offers customer service based on your preferences. Options may include in-person banking, phone and chat support, and private messaging through your online account. Some banks now offer virtual assistants who can answer general account questions and perform basic tasks.

Texas Banking Tips

The best bank in Texas is one that offers the accounts and services you need, provides excellent customer service, and doesn’t charge customers expensive bank fees. Some banks charge little or no fees and offer savers competitive APYs or annual percentage returns. Consider using multiple banks if you can’t find one that offers everything you need.

The right choice depends on your needs and preferences. What works for others may or may not work for you. Choose the best option now, and if that doesn’t work, you can switch banks later to choose the one that best suits your goals.

Find the best online banks of 2022

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