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Frost Bank Review

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by Nick Wallace Updated
Frost Bank

Frost Bank is one of the largest banks in Texas, with over 1,200 ATMs in the state and 130 financial centers. It does not have any ATMs or locations outside of Texas. Its personal banking services include checking and savings accounts, money market accounts, certificates of deposit, mortgages and personal loans.

Interest rates on Frost Bank accounts are competitive, and higher than most national banks. Its certificates of deposit are especially attractive, with good rates on deposits as low as $1,000. Likewise, Frost Bank offers a number of appealing features, including free overdraft protection transfers. 

Products Offered

Product Key Details
Savings Account
  • $3.50 monthly service fee, waived for accounts with minimum balance of $500
  • Interest compounded quarterly
Certificates of Deposit
  • Minimum deposit of $1,000
  • Terms from 90 days to 24 months
  • Higher interest rates than most national banks
Money Market Account
  • $15 monthly service fee, waived for accounts with a minimum balance of $15,000
  • Interest compounded monthly
  • Higher interest rates for accounts with higher balances
Checking Account
  • $8 monthly service charge, waivable with minimum balance of $1,000 or monthly direct deposit of at least $100
  • Fee-free overdraft protection transfers

Compare Frost Bank to Other Top Offers

Earn over 8 times the national average with a CIT Savings Account. Get 2.15% APY on balances of at least $25,000 OR monthly deposits of $100 or more with an initial $100 minimum deposit.

Frost Bank Overview

Texas is a big state, and Frost Bank is one of the biggest banks in Texas. It has over 100 locations spread across the state, including multiple locations in each of the state’s largest cities. It also claims one of the largest buildings in the state capital: the 33-story Frost Bank Tower.

For customers in Texas, Frost Bank offers nearly every personal banking service available at any major bank, including savings, checking and money market accounts. It offers higher rates than other large banks like Chase and Wells Fargo, along with a number of superior features such as free overdraft transfer protection for checking accounts. Texas is a big state, and Frost Bank is one of the biggest banks in Texas. It has over 100 locations spread across the state, including multiple locations in each of the state’s largest cities. It also claims one of the largest buildings in the state capital: the 33-story Frost Bank Tower.

For customers in Texas, Frost Bank offers nearly every personal banking service available at any major bank, including savings, checking and money market accounts. It offers higher rates than other large banks like Chase and Wells Fargo, along with a number of superior features such as free overdraft transfer protection for checking accounts. 

Frost Bank Interest Rate Comparison

Frost Bank Account Features

All Frost Bank accounts come with free access to Frost Bank’s extensive Texas ATM network. Online and mobile banking is likewise free. In general, Frost Bank requires a low minimum opening deposit, with a higher deposit needed in order to avoid a monthly fee. 

Those with a Frost Bank checking account and a savings account can enroll in free automatic overdraft protections transfers. These transfers move money between accounts in order to ensure that you do not accidentally overdraw your account, avoiding rejected checks.

Frost Bank Savings Account

Key Features Details
Minimum Deposit $50
Access to Your Savings Account Online, mobile and at physical locations. 
Security FDIC insurance up to the maximum amount allowed by law.
Fees $3.50 monthly fee, waivable with $500 minimum balance
Current Terms and Rates 0.20% APY

To open a savings account at Frost Bank, you need to start with a deposit of at least $50. However, a larger deposit ($500) is required to avoid the monthly service fee. While that fee is fairly low, at just $3.50, it will still cancel out any interest payments earned on your account.

The interest rate offered on Frost Bank savings accounts is 0.20%. Though not especially high, this does beat most major banks such as Chase and Wells Fargo. Those for whom interest payments are a priority should consider one of Frost’s money market accounts or a certificate of deposit - see below.

Frost Bank savings accounts come with a free Visa debit card. This can be used to withdraw money for free from Frost ATMs. Use of other ATMs will cost a $2 fee, in addition to any fees charged by the ATM owner. The debit card can also be used to make purchases, but note that Frost only allows two withdrawals per month on its savings accounts. Withdrawals beyond that limit cost an additional $3.

Frost Bank Certificates of Deposit

Key Features Details
Minimum Deposit $1,000
Access to Your CD Account Online, mobile and at physical locations. 
Security FDIC insurance up to the maximum amount allowed by law.
Fees No monthly fee, but early withdrawal penalties may apply. 
Current Terms and Rates
  • Accounts of $1,000 - $99,999:
    • 90 Day: 1.21% APY
    • 180 Day: 1.46% APY
    • 12 Month: 1.55% APY
    • 24 Month: 2.13% APY
  • Accounts of $100,000 and over: 
    • 14, 30 & 60 Day: 0.25% APY
    • 90 Day: 1.31% APY
    • 180 Day: 1.56% APY
    • 12 Month: 1.65% APY
    • 24 Month: 2.32% APY

Certificates of deposit offer the highest interest rates available at Frost Bank. If you are willing to give up access to your money for several months, or even a few years, you can earn CD interest rates as high as 1.8%. A 90-day CD earns an interest rate of 0.85%, substantially higher than rates offered by most large banks.

The minimum deposit required to enter a certificate at Frost Bank is $1,000. There is no premium for larger deposits until you reach $100,000. Higher rates are offered for deposits above $100,000.

With a certificate of deposit, you are agreeing to leave your money where it is for a set period of time. This means you cannot withdraw cash from your account as you can with a savings or money market account. Nor can you deposit additional funds as you go. In order to increase your CD investment, you would have to open a new CD.

That is not to say your money is completely frozen. If for some reason you want to exit your CD, you will be required to pay an early withdrawal penalty. The penalty is based on your interest rate and the length of your term. For CDs of 30 days to one year, the penalty is 30 days of interest. Longer CDs have an early withdrawal penalty equal to 90 days of interest. 

Frost Bank Money Market Account

Key Features Details
Minimum Deposit $50
Access to Your Money Market Account Online, mobile and at physical locations. 
Security FDIC insurance up to the maximum amount allowed by law.
Fees $15 monthly fee, waivable with $15,000 minimum balance
Current Terms and Rates
  • Account balances below $25,000: 0.40% APY
  • Account balances of $25,000 - $49,999: 0.45% APY
  • Account balances of $50,000 - $99,999: 0.50% APY
  • Account balances of $100,000 - $249,999: 0.85% APY
  • Account balances of $250,000 and over: 1.21% APY

Frost Bank money market accounts offer higher interest rates than the standard savings account, but they come with a big catch: to avoid the monthly fee of $15, you need at least $15,000 in your account at all times. Below that amount, the service fee essentially cancels out the higher interest rates.

For those who can meet that minimum deposit, a money market account with Frost Bank offers a nice bump in interest rates. 

Interest rates begin at 0.40% for balances up to $25,000. Above that, they increase gradually, topping out at 1.2% for accounts with a balance of $250,000 or more. Those rates are all substantially higher than rates offered at most major national banks.

A money market account also offers somewhat greater flexibility with your money, including check-writing and up to six free withdrawals per month. Above that threshold, there is a $10 fee on withdrawals.

Frost Bank Personal Checking Account

Key Features Details
Minimum Deposit $25
Access to Your Checking Account Online, mobile and at physical locations. 
Security FDIC insurance up to the maximum amount allowed by law.
Fees $8 monthly fee, waivable with one of the following
  • $100 monthly direct deposit
  • $1,000 minimum balance
  • $5,000 balance across all Frost acounts

Frost Bank’s personal checking account has a number of features that make it an attractive option for Texas residents. To begin with, it requires a minimum opening deposit of just $25. 

The $8 monthly service charge ($4 for students) can be avoided with a monthly direct deposit of at least $100, or a minimum balance of at least $1,000. A total balance of $5,000 among all Frost Bank accounts also negates the fee.

The account comes with a Visa ATM card, and free access to over 1,200 ATMs in Texas. So as long as you are in the Longhorn State, you won’t have trouble accessing your cash. Outside of the state, however, you will have to pay a $2 ATM fee on non-Frost Bank ATMs, in addition to ATM owner fees.

One of the best features of the Frost Bank checking account is that it comes with free overdraft protection transfers. That means that if you make a miscalculation and write a check that puts your account in the red, Frost Bank will transfer funds from another account, such as a savings or money market account, for free.

Where Can I Find Frost Bank?

Frost Bank has a significant presence in Texas, with over 1,200 ATMs and 130 locations. It does not have any locations outside of the Lone Star State, however.

What Can You Do Online With Frost Bank?

Frost Bank’s website and mobile app give customers full access to all of their accounts. This includes checking account balances, transferring funds between accounts and opening new accounts. You can also deposit checks with Frost Bank’s mobile app.

How Do I Access My Money?

Most Frost Bank accounts come with a free Visa debit card. Withdrawals can be made for free at a Frost Bank ATM, of which there are over 1,200 in Texas, though the number of withdrawals is limited for some types of accounts. You can also make purchases with your debit card.

If you lose your debit card, you can always stop into one of Frost Bank’s financial centers. There are over 130 in the state of Texas.

How Can I Save More Money With Frost Bank?

One of the best ways to increase your savings with Frost Bank is to put some of your money in a certificate of deposit. Frost offers good rates on its CDs. A two-year CD earns 1.8%, with a starting deposit as low as $1,000, and no fees if you leave your money in the account for the full period. Note however, that your rate in a CD is frozen; if interest rates increase, you may not be able to take advantage of the higher return.

What’s the Process for Opening an Account With Frost Bank?

You can open a Frost Bank account on its website. To do so you will need a Texas address, a government-issued photo ID such as a driver’s license and your Social Security number. With those in hand, the process is fairly quick. You will also need funds for your initial deposit, which can be done by making a transfer from another bank account.

If you want to open an account with cash, stop in to one of Frost Bank’s financial centers. In addition to your money, you will need the same information as required for the online process. 

What’s the Catch? 

This may be obvious at this point, but it bears repeating: Frost Bank is a Texas bank. It does not have any locations outside of the state. So if you are planning on spending substantial time in other parts of the country, it may be inconvenient to access your money.

Bottom Line

For residents of the Lone Star State, Frost Bank should be an appealing personal banking option. It offers competitive rates on most of its accounts, along with attractive features like free overdraft protection transfers for checking accounts. With over 1,200 ATMs in Texas, accessing money within the state is easy. Those who spend substantial time elsewhere, however, might prefer a bank with a wider footprint.

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Best Places to Save

SmartAsset’s interactive map highlights the places in the country where people have the opportunity to save money. Zoom between states and the national map to see the best places to save.

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Rank County Median Household Income Cost of Living Purchasing Power Estimated Tax Rate

Methodology Where you live can have a big impact on how easy it is to save money based on several regional factors. Our study aims to find the most suitable places for people to save based on median household income, average living expenses and income tax burden.

First, we calculated the average cost of living in each county for a household with two adults (one working). We then created a purchasing power index for each county. This reflects the counties with the highest ratio of household income to cost of living.

To better compare income tax burdens across counties, we applied relevant deductions and exemptions before calculating federal, state and local income taxes for a family making $50,000 annual income in each location. Next, we created an effective tax rate index for each county, which reflects the counties with the lowest ratio of income taxes to the assumed $50,000 annual income.

Finally, we calculated the weighted average of the indices to yield an overall best places to save score. We used a three-fourths weighting for purchasing power and a one-fourth weighting for tax rates. We indexed the final number so higher values reflect places that are better to save.

Sources: US Census Bureau 2016 5-Year American Community Survey, MIT Living Wage Study