Frost Bank Review: A Top-Rated Bank for Texas Residents

Determine if Frost can serve your financial needs well.

Frost Bank is a regional bank that has served the people of Texas since 1868. With more than 130 locations throughout the Lone Star State, this San Antonio-based, state-chartered bank serves customers in most of Texas’s larger metro areas. 

Frost boasts the highest ranking among Texas banks for customer satisfaction, according to J.D. Power. It offers basic checking and savings accounts as well as insurance services and wealth management products through its investment arm. These offerings are designed to help customers manage and grow their finances. 

Read through this Frost Bank review to find out how well it suits your needs.


Who Is Frost Bank Best For?

Frost offers most of the banking products and services you find at other banks, making it a comfortable fit for just about anyone who lives or works in Texas. However, the bank has positioned itself to serve certain customers particularly well. Here are some pros and cons that might help you decide:

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Pros

  • Well-positioned to serve Texans with branches throughout the state
  • More likely to offer a personal touch than large national banks

Cons

  • Service area restricted to Texas

Who Might Want To Choose Frost Bank?

First, Frost operates only in Texas, with branches from Corpus Christi to El Paso and most places in between. So it’s obviously a good choice for residents of the Lone Star State, particularly those who live in the following areas:

  • Austin
  • Corpus Christi
  • Dallas/Fort Worth
  • Houston
  • Permian Basin
  • Rio Grande Valley
  • San Antonio 

Also, with its Texas focus, Frost Bank might better understand the needs of customers dealing with issues unique to the state. And even though it’s not a huge bank compared with large national bank, Frost still offers the latest technology that can make banking more convenient. 

Who Might Want To Skip Frost Bank?

Non-Texans will probably want to skip Frost Bank because of its limited geographic reach. Even Texans in certain non-metropolitan areas might find it inconvenient to travel to the nearest Frost branch.

Moreover, Frost might not be a good choice for banking customers who prefer the wider array of products and services available at larger national banks. You’ll also want to skip Frost if you travel a lot and need a bank with a wider national or regional reach.

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Compare: Best Banks in Texas

Types of Accounts Available

Frost Bank offers the usual lineup of checking and savings accounts, along with money market accounts, certificates of deposit, IRAs, loans and investment services. Here’s a quick rundown of the types of accounts available, along with annual percentage yields, annual percentage rates and fees:

Frost Bank Account Types
Account TypeRatesFees
Checking0 – 0.01% APY$0 – $30 monthly, depending on activity and  balances
Savings0.01% APY$0 -$5 monthly, depending on activity and balances
Money Market0.06% APY$0 – $5 monthly, depending on activity and balances
Certificates of Deposit0.05% – 0.28% APYNone, unless money is withdrawn before maturity
IRAsN/AN/A
InvestmentVariesVaries
InsuranceN/AN/A
Loans3.74% – 12.00% APR$0
Rates current as of 4/22/20

Find Out: Best Frost Bank Offers of April 2020

Standard Checking Accounts

Frost Bank offers two different kinds of standard, non-interest checking accounts: the Frost Personal Account and the U25 Frost Personal Account. The one that will appeal to most customers is the Frost Personal Account because it has no age restriction. This account imposes an $8 monthly service charge, though that can be waived with $100 or more in direct deposits per month. You can also avoid it by maintaining a $1,000 minimum account balance or at least $5,000 across all deposits account types. Customers also can use more than 1,200 Frost ATMs free of charge across Texas. 

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Those under 25 years of age can get a U25 Frost Personal Account, which has no monthly maintenance fees. 

Here’s a look at some of the advantages and disadvantages of Frost Bank checking accounts:

Pros

  • Fee-free Frost Bank ATM use in most cases; $2 fee to use non-Frost ATM
  • Low maintenance fee of $8 compared with other banks
  • Fee can be waived by meeting certain requirements

Cons

  • $35 overdraft charge if overdrawn by more than $5
  • Overdraft fees can run as high as $175 per day.

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Interest Checking Accounts

Frost Bank also offers two different options for interest-bearing checking accounts: Frost Plus and Frost Premium. The Frost Plus Account comes with a $15 monthly maintenance fee that can be avoided with a $10,000 average daily balance across all Frost accounts. Frost Bank will also waive the fee for borrowers on consumer real estate secured loans. Account holders can use non-Frost ATMs without a charge from the bank. 

The Frost Premium Account offers the above perks as well as no overdraft or miscellaneous fees. However, it also comes with a $30 monthly service charge. To avoid the monthly charge, you need to have at least $250,000 in combined deposits and investments with Frost. 

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Pros

  • No ATM fees for Frost Plus, Premium Accounts
  • No fee for cashier’s checks and money orders
  • Premium holders do not pay monthly services charges on other Frost accounts

Cons

  • Low 0.01% APY compared with other banks
  • Must have at least $10,000 to earn APY
  • Large deposits required to waive the Frost Premium Account monthly fee

Savings Accounts

The Frost Savings Account pays a comparatively low APY of 0.01%, but it also has a low monthly service fee of $3.50. To avoid the fee, you must maintain a $300 minimum daily balance or make deposits of at least $10 per month. As with all savings accounts, you also won’t get charged a monthly fee if you have a Frost Premium Account. 

Customers with certain high-deductible health insurance plans can open a Frost Health Savings Account, which is designed to cover medical expenses for you and your dependents with before-tax dollars. Unlike some health-related accounts, unused funds in this account roll over into future years. Also, the Frost HSA pays interest and allows for unlimited electronic withdrawals. Accountholders can avoid the $5 monthly service charge with a minimum daily balance of $3,000. 

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Pros

  • Unlimited lobby and ATM withdrawals
  • HSA allows the use of before-tax dollars for medical expenses
  • Low monthly fees that can be waived

Cons

  • Low APY
  • HSA requires high minimum balance to avoid fees

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Also See: Best Savings Accounts of 2020

Money Market Account

The Frost Money Market Account offers both liquidity and yield. Since Frost tiers interest rates, APYs can rise as deposits get larger. This account has a $15 monthly service charge that gets waived if at least $15,000 is deposited into the account. 

Pros

  • Higher APY than savings accounts
  • Ability to write checks

Cons

  • High service fee for those with account balances less than $15,000

CDs

Frost Bank’s CD option is the Frost Personal CD. Interest rates vary, but longer lockout periods mean higher interest rates. Frost will also provide higher rates for CDs valued at $100,000 or more, sometimes called jumbo CDs. These jumbo CDs will typically offer APYs that are between 0.05% and 0.1% higher than smaller CDs. 

Pros

  • Higher APY than standard savings accounts
  • Maturities range from 14 days to 24 months

Cons

  • Low APYs compared with other banks
  • Lack of immediate access to funds

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Individual Retirement Accounts

Frost Bank offers both Traditional and Roth IRA options and will help you with a Rollover IRA if you have a 401(k) plan from a previous employer and want to move it somewhere else. Once you’ve chosen your IRA, Frost can help you manage it. The bank’s money managers help find products that are well-suited for your investment needs and retirement goals. Once you retire, Frost can also manage retirement plan distributions. 

Pros

  • Traditional, Roth, Rollover IRAs available
  • Mutual funds, stocks, bonds and annuities available

Cons

  • High fees for early withdrawal

Investment Options

Investment options are not for retirement planning only. Frost Bank can also help you fund your children’s education with a Custodial Account, Coverdell Account or 529 Plan.

Whether you’re saving for retirement, education or something else, Frost offers multiple investment options in vehicles such as mutual funds, stocks and bonds. The bank can also help set you up on periodic investment plan that lets you automatically contribute money from your paycheck. The bank’s Frost Managed Accounts division handles a lot of this type of work.

Finally, Frost’s services also extend to trusts and estate planning designed to help you protect your wealth. These services include family legacy planning to help ensure that family governance and succession issues change hands in an orderly manner when you can no longer manage your affairs. 

Pros

  • Options available for multiple needs
  • Solutions available for all income levels
  • Access to professional advisors

Cons

  • Some services carry fees

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Loans

Frost Bank makes both home equity and auto loans as well as loans for other personal needs such as college tuition, weddings and home improvement. These come in the form of either Personal Loans at fixed rates or Personal Lines of Credit, where interest rates vary.

Pros

  • Offers both secured and unsecured loans
  • No origination fees on the lines of credit

Cons

  • Interest rates on personal lines of credit can rise without warning

Insurance Options

Frost Bank works with both you and third-party insurers to provide coverage in the following areas:

  • Home
  • Auto
  • Life
  • Umbrella insurance
  • Valuables
  • Farm and ranch
  • RV, aircraft and watercraft

Frost can also help you work with other providers for flood, long-term care, health, disability, travel and officers insurance. 

Pros

  • A large variety of property insurance options
  • Can offer help with health, disability and other insurance types

Cons

  • Cross-marketing with other bank products can lead to upselling

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Related: How Infinite Banking Makes It Possible To Become Your Own Bank

How To Bank With Frost Bank

You can open a checking account online at Frost Bank, but you’ll need to call or visit a branch to open other types of accounts or apply for a loan.

If applying for an account, have the following information ready:

  • Social Security number
  • Government-issued photo ID
  • Funding source for any minimum opening deposits 

Technology

Frost customers can handle almost all banking functions on their computers or through the Frost App. The app offers the option to log in with your fingerprint and also lets you send or receive money through Zelle, deposit checks and contact customer service. Additionally, this technology allows you to access all your Frost finances, including mortgages, credit cards and IRAs. 

Customer Service

If you prefer to visit a branch with questions, most are open Monday through Friday from 8 a.m. to 6 p.m. and Saturday from 9 a.m. to 1 p.m. 

If you need to speak with somebody by phone, you can call customer service and internet banking specialists 24/7 throughout the year. The general customer service number is 800-513-7678 and the number for internet banking specialists is 877-714-4932. For a Spanish-speaking banker, call 210-220-4511. 

Fees

Fees for Frost banking products can add up if you’re not careful. Fortunately, the bank offers multiple options for avoiding them. To waive most fees, you just need to maintain a minimum balance or deposit a specified amount in your accounts. Using Frost ATMs instead of out-of-network machines will also prevent you from having to pay fees to access cash. To avoid overdraft charges, take advantage of the Frost App or the website to keep tabs on your account balances.

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Read More: Making This Mistake at Your Bank Can Cost You $10,221

Availability of Funds

Frost provides its customers with access to cash via ATMs, checks and the Zelle cash app. Check deposits are typically available on the next business day. The bank limits ATM withdrawals to $1,000 per day. 

Is Frost Bank the Right Choice for You?

Banking with Frost brings both advantages and disadvantages. On the plus side, Frost is a good option for those who live in its immediate service area because the bank offers a wide variety of products and services. As a regional bank, it has the resources to compete with larger institutions on its technology while remaining small enough to offer the kind of personal touch found at a community bank. 

But because Frost is exclusively a Texas bank, it’s not a good choice for those who live and work elsewhere — or even for Texans who don’t live near a Frost branch or ATM. Customers looking for a bank with a wider geographic reach are probably better off elsewhere.

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This content is not provided by Frost Bank. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by Frost Bank.

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About the Author

Will Healy

Will Healy is a freelance business and financial writer based in the Dallas area. He has covered a variety of topics, such as stocks, real estate, insurance, personal finance and macroeconomics. In addition to GOBankingRates, his articles have appeared on sites such as InvestorPlace, Yahoo! Finance, MSN Money, Kiplinger’s Personal Finance and Seeking Alpha.

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