Frost Bank CD Rates

Frost Bank 90-Day Personal CD

4.55% APY

Frost primarily serves customers in Texas and offers a noticeably wide range of banking products, which include certificate of deposit (CD) accounts. Headquartered in San Antonio, Frost personal certificates offer more short-term options. The minimum deposit for both accounts, however, is $1,000. But if you’d like to earn at a higher annual percentage yield (APY), you’ll need to deposit a minimum of $100,000.

Frost also provides online and mobile banking features that allow for more convenient banking. Through both services, you’ll be able to access and manage finances, make transfers, make deposits and pay bills. But when it comes to Frost’s CDs, the interest rates don’t compare well with the best CD rates competitors offer.

To calculate how much interest you could earn with a CD, try using SmartAsset's CD calculator.

Frost Personal Certificates

Frost’s personal CDs come with terms that span from 14 days to two years. In addition, you’ll also earn at a fixed interest rate for whatever term you choose. This is because Frost locks in the interest rate at which you initially opened your CD. Therefore, you’ll earn at the same rate at which you opened your account. Furthermore, you’ll be able to earn at higher or lower APYs based on how much you deposit into your account. For instance, minimum deposits of $1,000 earn at lower rates than minimum deposits of $100,000.

90-Day Personal CD Interest Rate Comparison

Overview of Frost Bank CDs

All Frost certificates generally produce greater returns for longer terms. Additionally, both accounts allow you to earn at greater rates based on your deposit amount. One thing to consider, however, is that you won’t have access to Frost’s shorter-term CDs if you’re planning on depositing at least $1,000. If your deposit falls under $100,000, you’ll only be able to open a CD at the 90-day mark. Alternatively, minimum deposits of at least $100,000 will give you access to every personal CD term Frost has to offer. Therefore, you’ll be able to select any personal term you choose.

Both accounts also come with early withdrawal penalties, so you’ll want to wait until your CD matures to withdraw. Frost knocks off earned interest for withdrawals made before maturity. For instance, any withdrawal made on a personal CD of at least one year could result in a deduction of up to 90 days of interest. So if you’re looking to generate greater savings growth, it’s best to wait until your account’s term ends. 

Finally, as with most financial institutions, Frost offers automatic renewal on all certificates. For instance, all CDs will automatically renew on the date of maturity. However, if you wouldn’t like to renew your account, you’ll have 10 days before it matures to notify Frost.

How Much You Earn With Frost Certificate of Deposits Over Time

Greater deposits will ultimately earn you greater savings growth on any Frost CD. In addition, the interest on all Frost certificates is compounded yearly. Therefore, your interest won’t build as fast as a certificate with similar rates where its interest compounds daily. Nonetheless, larger deposits at Frost will earn you more money in the long run. Its rates are fairly decent, but you’ll earn at a greater APY by opening accounts with terms of at least one year.

How Frost CD Rates Compare to Other Banks’

Frost’s short-term CD rates are generally more competitive than its longer-term accounts. For instance, you can earn at a 4.35% APY with a 180-day CD. Frost’s two-year CD, on the other hand, only generates an APY of 3.25%. However, you can find similarly competitive CDs at other competitors like HSBC Bank and Discover.

HSBC, for example, also presents a competitive six-month interest rate and offers it for a minimum of $1,000. Discover, though an online-only bank, offers similarly comparable six-month rates, but generates higher long-term rates.

Should You Get a Frost CD Account?

Overall, Frost could be a feasible choice for Texas residents located near any of the bank’s numerous branches. However, if you’re looking for higher rates for longer terms, you can find better rates elsewhere. Frost’s personal CDs generate higher rates for shorter terms. Therefore, those in search of competitive short-term rates stand to benefit the most. So if you don’t mind Frost’s $1,000 minimum requirement, and you want to earn more for shorter terms, its CDs could be right for you.