Frost Bank Review: Checking, Savings, CD and Money Market Accounts

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Updated on Wednesday, July 1, 2020

Frost Bank checking account options

Personal Checking

Frost Bank’s lone checking account option offers a miniscule amount of interest for a pretty high minimum balance amount.
APYMinimum Balance to Earn APY
0.01%
$5,000
  • Minimum opening deposit: $25
  • Monthly account maintenance fee: $8 ($4 for students under age 25); can be waived with a monthly direct deposit of at least $100, by maintaining a $1,000 balance, or by maintaining a combined balance of $5,000 among all Frost Bank personal accounts
  • ATM fee: None on Frost Bank ATMs; $2 on out-of-network ATMs
  • ATM fee refund: Frost Bank occasionally refunds ATM fees for out-of-state customers; contact the bank for further details
  • Overdraft fee: $34 on amounts over $5, up to a maximum of $170 per day

This account earns a small amount of interest on balances of $5,000 or more, which is compounded monthly. And while the monthly fee is fairly easy to avoid as a working adult, it could prove to be more challenging for students — so the lowered fee for students is a nice touch for those who may not be able to afford it. The account also offers:

  • Mobile banking access via an iPhone or Android app
  • Mobile check deposit of up to $25,000 daily
  • Free overdraft protection by linking the account to another Frost Bank account to cover overdraft amounts
  • Unlimited transactions and check writing
  • Unlimited online and mobile bill pay
  • Unlimited online and mobile transfers to other financial institutions
  • Frost Bank debit card
  • Online statement delivery

How to get Frost Bank’s checking account

Texas residents can open an account either online, via the app, or in person. To do so, you’ll need a Texas state address, a government-issued ID such as a driver’s license, as well as your Social Security number.

SEE DETAILS Secured

on Frost Bank’s secure website

Member FDIC

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How Frost Bank’s checking account compares

With such a low interest rate and high minimum balance to even earn it, we give this account a big “Why bother?” Its monthly fees are fairly easy to avoid, so we’ll give Frost Bank that, but there are so many truly free accounts out there that offer the ability to earn better rates on much lower balances, along with other perks like no ATM fees from their end, and ATM fee refunds to boot. We urge you to shop around, possibly considering those on our list of the best online checking accounts.

Frost Bank’s savings account options

Personal Savings account

The bank’s savings account offers a low interest rate on all balances.
APYMinimum Balance to Earn APY
0.01%
$0.01
  • Minimum opening deposit: $50
  • Minimum balance to earn APY: $0.01
  • Monthly account maintenance fee: $3.50; can be waived if a minimum monthly balance of $500 is maintained
  • ATM fee: None on Frost Bank ATMs; $2 on out-of-network ATMs
  • ATM fee refund: Frost Bank occasionally refunds ATM fees for out-of-state customers; contact the bank for further details
  • Overdraft fee: $34 on amounts over $5, up to a maximum of $170 per day

This account earns a small amount of interest on all balances, which is paid quarterly. As with the checking account, its low monthly service fee is fairly easy to avoid with a small minimum monthly balance requirement. You can make online transfers into and out of the account with ease, and it can be used as overdraft protection to cover your checking account at no charge. Federal Reserve Regulation D normally limits certain transfers and withdrawals up to six per month, but make note of the fact that this account only permits you to make two free ones per month.

SEE DETAILS Secured

on Frost Bank’s secure website

Member FDIC

Health Savings account

This savings account is intended to solely cover medical expenses.
APYMinimum Balance to Earn APY
0.01%
$0.01
  • Minimum opening deposit: $50
  • Minimum balance to earn APY: $0.01
  • Monthly account maintenance fee: $3 without imaged checks or $5 with imaged checks; can be waived if a minimum monthly balance of $3,000 is maintained
  • ATM fee: None on Frost Bank ATMs; $2 on out-of-network ATMs
  • ATM fee refund: None
  • Overdraft fee: $34

This health savings account allows you to earn a small amount of interest on all money you put in it. You may be eligible to open this account if you fit all of the following criteria:

  • You’re covered under a high-deductible health plan (minimum of $1,300 if you’re single, and $2,600 for a family)
  • You are not covered by any other health plan
  • You are not entitled to Medicare benefits
  • You are not a dependent on another person’s tax return.

While its monthly fee is fairly low, the minimum balance to be able to waive it is on the higher end. Contributions to this account could be tax deductible, though you should consult a tax advisor or the IRS to make sure. You can contribute up to $3,400 annually if you’re single, or $6,750 for a family. Although Federal Reserve Regulation D normally limits certain withdrawals and transfers up to six per month on savings account, this account permits three free check withdrawals every month, then charges $5 on each one thereafter. Unused balances on this account automatically carry over from year to year, and transfers made from your checking account are counted toward your current year contribution limits.

How to get Frost Bank’s savings accounts

To open one of Frost Bank’s savings accounts, you can call the bank at 866-376-7889 or visit a bank location in person. Be sure you’re prepared with your minimum opening deposit, proof of a Texas state address, government-issued ID and Social Security number.

SEE DETAILS Secured

on Frost Bank’s secure website

Member FDIC

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How Frost Bank’s savings accounts compare

You can look at the interest rates of these accounts alone to give them a hard pass. Their monthly fees, and the requirements to waive them, make them lose points as well. While the bank does have easy-to-navigate online and mobile banking platforms, that just isn’t enough to make these accounts stack up against better offerings out there. Consider one of the free accounts on our list of the best online savings accounts, many of which offer higher rates and no fees whatsoever.

Frost Bank’s CD rates

Personal CDs

Frost Bank’s CDs are available in fairly short term lengths with pretty mediocre rates.
TermAPY Minimum Opening Deposit
14 days0.08%
$100,000
30 days0.23%
$100,000
60 days0.23%
$100,000
90 days0.13%
$1,000
90 days0.23%
$100,000
180 days0.20%
$1,000
180 days0.25%
$100,000
12 months0.20%
$1,000
12 months0.25%
$100,000
24 months0.21%
$1,000
24 months0.26%
$100,000
  • Minimum opening deposit: Varies; see table
  • Minimum balance amount to earn APY: Varies; see table
  • Early withdrawal penalty: For certificates issued for less than 30 days, it’s the interest that the withdrawn portion has earned, but no less than seven days of interest; for certificates with terms in length from 30 days to 1 year, it’s 30 days’ interest; for certificates issued for more than 1 year, it’s 90 days’ interest

A $1,000 minimum opening deposit is pretty standard as far as CDs go, but the jump to $100,000 is pretty drastic, especially since the rate increase doesn’t exactly match that jump. While most of these rates do beat out national averages, there are still better offerings out there offering higher rates for lower amounts on deposit.

How to get Frost Bank’s CDs

To be able to open a Frost Bank CD, you’ll need to call the bank at 866-376-7889, or visit a bank location in person. Be sure to be prepared to begin by having your opening deposit, government-issued ID, proof of Texas state address and Social Security number handy.

SEE DETAILS Secured

on Frost Bank’s secure website

Member FDIC

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How Frost Bank’s CD rates compare

While the rates on these CDs can be described as competitive, there are definitely better rates to be had out there, many of which can be applied to much lower balances than $100,000. We urge you to shop around and possibly consider one of the products on our list of the best CD rates to ensure you truly get the best bang for your buck.

Frost Bank’s money market account options

Frost Bank’s money market allows you to earn interest at several different tiers.
APYMinimum Balance to Earn APY
0.06%
$0.01
0.06%
$10,000
0.06%
$25,000
0.06%
$50,000
0.06%
$100,000
0.06%
$250,000
  • Minimum opening deposit: $50
  • Minimum balance to earn APY: Varies; see table
  • Monthly account maintenance fee: $15; can be waived if minimum monthly balance of $15,000 is maintained
  • ATM fee: None on Frost Bank ATMs; $2 on out-of-network ATMs
  • ATM fee refund: Frost Bank occasionally refunds ATM fees for out-of-state customers; contact the bank for further details
  • Overdraft fee: $34 on amounts over $5, up to a maximum of $170 per day

Although this account offers a pretty low opening deposit requirement, the balance requirement to avoid the monthly fee is rather hefty. You can earn interest on any amount (paid monthly on this account), but the rates don’t really start to even slightly creep up until your balance reaches six figures. The account comes with free imaged checks, and it’s available to be used as overdraft protection to cover your checking account. As a savings account, it is subject to Federal Reserve Regulation D, which limits certain withdrawals and transfers up to six per month.

How to get Frost Bank’s money market account

As with the savings accounts and CDs, you’ll have to either call the bank at 866-376-7889 or visit a bank location in person to be able to open a money market account. For either method, be sure you’re ready with your opening deposit, proof of Texas state address, government-issued ID and Social Security number.

SEE DETAILS Secured

on Frost Bank’s secure website

Member FDIC

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How Frost Bank’s money market account compares

The bank boasts competitive rates on its accounts, but they really don’t even come close to the ones on our list of the best money market rates. Not only that, but the highest rates it offers only apply to balances of over $100,000, and you have to be able to maintain a large monthly balance to be able to avoid the monthly fee. Needless to say, this account isn’t worth your while; do your due diligence in shopping around, possibly considering one of the accounts on our list instead.

Overall review of Frost Bank’s banking products

Give most of Frost Bank’s personal accounts a pass. With the exception of some of its CDs, all of the accounts seem to come with some sort of catch — primarily high minimum balance requirements to avoid the monthly fees — for what are mostly mediocre rates. Not only that, but the fact that you can’t open accounts other than the checking account online is likely to be an inconvenience for people who don’t live near a branch.

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