Best Banks In Texas For September 2022 – Forbes

The best banks in Texas have 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 for customer satisfaction.

The Best Banks in Texas for Branches

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

The Texas markets with the greatest volumes of deposits are:

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

The hundreds of banks within the Lone Star State include several big national banks—Wells Fargo, Chase, Bank of America and PNC— that operate the largest numbers of branches within 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 J.D. Power’s 2022 Retail Banking Satisfaction Study. The average customer satisfaction score was 666 out of a possible 1,000 among Texas banks.

Top Texas Banks for Customer Satisfaction

Types of Banks in Texas

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

National Banks

The national banks in Texas are large and well-known commercial banks that tend to have brick-and-mortar branches across several states. They offer the widest choice of banking products, including checking and savings accounts, mortgages, credit cards and investment services. The biggest of the big national banks each hold trillions of dollars in assets.

Regional Banks

Regional banks are medium-size financial institutions that operate branches within a specific region of the U.S., such as the Southwest or solely the states of Texas and Oklahoma. The banks typically provide a full range of consumer and business banking products. The Federal Reserve characterizes regional banks as those with total assets between $10 billion and $100 billion.

Community Banks

The clear majority of banks in the U.S. are community banks serving limited areas. Most of their deposits come from the local community, and the banks focus their lending on consumers and businesses living there. Community banks may have less than a handful of branches and offer a narrower selection of banking products. A community bank holds less $10 billion in assets, according to the Fed’s definition.

Online Banks

Texans may opt to do their banking using online banks that aren’t really “Texas banks.” They have no physical bank branches and can operate virtually anywhere in the U.S., with services provided through online and mobile access. Since online-only banks don’t have to staff or operate brick-and-mortar locations, they often pass savings on overhead costs along 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 isn’t an easy task. Consider the following factors when selecting the best bank for your needs.

Accounts and Services

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

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

Fees

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

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

Interest Rates

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 must maintain a specific balance to earn the best rates.

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

Convenience

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

If you prefer in-person support, a local bank may be best, 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 the help of bank staff to get answers or access funds. Find a bank that offers customer support 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 that can answer general account questions and perform basic tasks.

Tips on Banking in Texas

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

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