It’s useful to compare interest rates offered by different types of accounts.
As you probably know, the highest rate by far is offered by Texas Star Checking is at 5%. It is hard to get it, since there are numerous conditions and restrictions. Apart from that, the highest rate is 2.9% for a 48-month CD (this rate goes to 3.15% if you have over $100,000). The penalty for early withdrawals is half a years’ worth of interest, so it’s actually worth taking this option even if you’re not sure whether you need the money earlier.
Even if you plan to access your money within a year or two, CDs still offer the best deal. With the rates on 1-year CD at 1.7%, it will beat the rate on any other account types.
Only if you access you money on a regular basis should you put it into a money market account at 1.25%.
Texas Heritage National Bank checking accounts and Texas Heritage National Bank savings accounts rates are lower still, and there’s really no reason to use them unless you can’t meet the requirements for the money market account.
