City Bank Review

City Bank Savings

0.25% APY

Since its start as the First State Bank of Morton in 1941, City Bank has developed a strong presence in the state of Texas, with more than 20 locations. The bank offers a number of savings account and checking account options, as well as a money market account (MMA) and several certificates of deposit (CDs).

With free accounts offering a no-frills experience as well as premium accounts that come with a collection of discounts and perks, City Bank has an option for most every kind of customer. The minimum balance required to open accounts varies widely, stretching from $0 all the way to $10,025.

Overall, the interest rates City Bank offers are average relative to what you can get elsewhere in the area. Compared to online options, the rates are less than competitive. Accounts vary in terms of monthly fees as well - some have no monthly fee at all and some have quite substantial fees. All monthly fees at the bank are waivable, however.

Products Offered

City Bank Interest Rate Comparison

City Bank Overview

City Bank operates 24 branch locations, with 22 in Texas and two in New Mexico. The bank has 16 mortgage locations in those same states as well. Its headquarters are in Lubbock, Texas, where it has nine branch locations.

Although this article will focus on the personal banking options, City Bank also offers business banking services, home lending and wealth management services. In the personal realm, the bank offers one type of savings accounts, one money market account, four checking accounts and several different CDs. Read on to learn more about each of these options.

City Bank Account Features

Many of the deposit accounts at City Bank are accessible online or via the bank’s mobile app. Accounts also come with a Mastercard debit or ATM card, depending on the type of account.

Three of the accounts at City Bank come with monthly service fees, and all are waivable provided you meet certain balance requirements that vary in size. You may also face fees for excessive transactions with the savings and money market accounts.

Regular Savings Account

The Regular Savings account is the most basic savings account that City Bank has to offer. The $300 minimum opening balance is a little high for a savings account like this, but it’s still reachable for most. You’ll have to be wary of staying above that threshold, otherwise you’ll be hit with a $10 fee.

Interest is compounded and credited to your account quarterly. You’ll also be limited to six withdrawals per quarter, and every withdrawal after that will cost you $2. You can get electronic statements for free, but if you want paper statements for your records, you’ll have to pay a $5 paper statement fee each statement cycle.

Money Market Account

If you're looking to deposit a larger sum of money but you still want immediate access, you may be interested in the Money Market account at City Bank. Your interest rate rises as your account balance rises, topping out at 0.80% APY. You'll need at least $1,500 in the account to earn any interest and avoid the service fee, however.

You’re allowed six transactions per statement cycle, whether that be a pre-authorized transfer, check or debit card transaction. If you exceed that limit, you'll have to pay a $10 fee for every extra transaction.

Certificates of Deposit

City Bank offers a variety of certificate of deposit (CD) accounts with term lengths ranging from 30 days to five years. You'll need at least $1,000 in order to open an account, and you’ll have the peace of mind knowing that your interest rate won't change throughout your term.

If you need to withdraw your money before the end of your term, you'll be forced to pay an early withdrawal penalty. The exact amount of the penalty will depend on the amount you're withdrawing, how far into your term you are and the original length of your term. Once your term matures, you'll have 10 days to withdraw your money before the bank renews you automatically for a new CD of the same term.

Simple Checking Account

The Simple Checking account is City Bank’s no-frills checking account option. Once you meet the $50 minimum opening balance requirement, you won’t have to worry about meeting a balance or activity threshold or paying a monthly service fee.

You’ll receive a free debit card with the account, and you’ll also have unlimited check writing capability. If you want paper statements, you’ll have to pay $5 per statement cycle. You can open this account on the City Bank website or in person.

Rewards Checking Account

The Reward Checking account from City Bank allows you to earn interest at a competitive rate provided you meet several activity requirements each month. You'll only need $50 to open the account, and there’s no monthly fee to worry about. You can also get up to $15 in ATM fees refunded if you meet the activity requirements.

To earn at the higher interest rates, you have to use your debit card, set up one or several direct deposits, pay a bill through your account and elect for e-Statements every month. You have to meet all these requirements by the third Wednesday of the month in order to qualify. There's no penalty for failing to meet these requirements in a given month; you would simply earn at a 0.01% interest rate.

Interest Checking Account

If you're looking for an interest-bearing checking account but you doubt you'll meet the activity requirements of the Reward Checking account, then the Interest Checking account might be what you’re looking for. Provided you maintain an account balance of $1,500 or more, you'll earn interest at a steady 0.10% rate.

That $1,500 threshold will be important to remember. You’ll need that much to open the account in the first place, and you'll also need at least that to avoid the $12 service fee. You'll also enjoy the standard checking account benefits like a debit card, unlimited check writing and access to online banking.

RPM Checking Account

Available exclusively to those 55 and over, the RPM checking account at City Bank offers several perks without the threat of fees or extra requirements. You’ll interest on your money no matter what, but the specific rate is dependent on your balance and whether you have a direct deposit attached to your account.

You'll need a hefty chunk of change to open the account ($10,000 plus a $25 membership fee), but once it's open, you'll receive all kinds of free products and services like cashier's checks, notary services, stop payments, investment portfolio reviews, financial planning seminars and a quarterly newsletter.

Where Can I Find City Bank?

City Bank has 24 branch locations and 16 mortgage locations in Texas and New Mexico. The bank's headquarters, as well as almost half its branches, are located in Lubbock, Texas. All branches have ATMs, and there are four stand-alone ATMs in Texas.

What Can You Do Online With City Bank?

You can open and manage certain accounts on the City Bank website. You can also manage your accounts with your smartphone via the City Bank Mobile app. On iTunes, the app has a 2.1 star rating and 29 ratings as of this article's publication.

How Do I Access My Money?

You can access funds online or via the mobile app. You can also make deposits or withdrawals at any City Bank ATM. If you use an out-of-network ATM, you may face fees from both City Bank and whichever third party operates the ATM, although the Reward Checking will allow a limited number of free foreign ATM transactions per statement cycle. And, of course, you can visit a City Bank branch to access funds.

How Can I Save More Money With City Bank?

The best interest rate you can find at City Bank is with the five-year CD account. At 1.75%, you could certainly do worse, although you can find better rates for similar CDs with online banks. You'll only need $1,000, and you can lock in the rate for the entire term.

The Reward Checking account can also earn interest at a 1.11% rate, which is very competitive for a checking account. However, most bankers will likely find it difficult to attach four direct deposits to their account each month, which is necessary to achieve such a rate.

What's the Process for Opening an Account With City Bank?

You can apply for some deposit accounts by visiting the City Bank website (you must be a Texas resident to do this), but your best bet is to visit your nearest branch in person to open any account. To open an account, you'll need enough money to meet the minimum opening deposit requirement for your desired account as well as a driver’s license or other form of government-issued ID. You'll also need your Social Security number, date of birth, current home address and possibly your phone number and email address.

What's the Catch?

The most disappointing feature of City Bank is probably the interest rates, particularly with the savings account. 0.25% is right at the national average, so it could be worse, but it still falls far short of what you can find online. The rates offered with the long-term CDs are more competitive, but none of the rates at City Bank really pop out.

Bottom Line

If you're a Texan or live in Ruidoso, New Mexico and you’re looking for a wide range of account options, you may find what you’re looking for at City Bank. If your biggest priority is earning as much interest on your money as possible, then you will likely be disappointed by what City Bank has to offer.