LegacyTexas Bank Review: Checking, Savings, CD, Money Market and IRA Accounts

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Updated on Tuesday, September 1, 2020

LegacyTexas Bank’s checking account options

Free Checking

A simple, no-frills checking account.
  • Minimum opening deposit: $100
  • Monthly account maintenance fee: None
  • ATM fee: $1.50 for out-of-network ATMs
  • ATM fee refund: None
  • Overdraft fee: $35

The Free Checking account can be a great choice if you’re looking for something that offers minimal fees. You get a few ways to access your cash — at your branch or via telephone, mobile or online banking. This account also includes free bill pay, a Mastercard debit card and mobile check deposit services.

The Mastercard debit card comes with zero-liability protection and cash back with the Legacy Rewards program. All you need to do to is log in to your account and select current offers. Then you’ll earn the reward once you make a purchase from the participating retailer.

You also may be eligible to receive a 0.50% rate discount on certain personal loans if you elect to make automatic payments.

How to get the Free Checking account

You can open an account in person or online. To do so, fill out an application. It’ll ask you for your ZIP code and the account you want to open. You’ll also need to provide personal details such as your name, address and government-issued ID. Then fund your account.

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on LegacyTexas Bank (TX)’s secure website

Maximum Checking

Nab some nifty benefits if you can meet the bank’s requirements.
APYMinimum Balance to Earn APY
1.00%
$0.01
0.05%
$25,000
0.05%
$100,000
*A lower APY will be applied if you don’t meet the qualifications for the rates above.
  • Minimum opening deposit: $100
  • Monthly account maintenance fee: None
  • ATM fee: None
  • ATM fee refund: Unlimited
  • Overdraft fee: $35

If you’re after a better rate and an account with fewer fees, then this one may be your best bet. Although it is a free account, you need to meet LegacyTexas Bank’s eligibility requirements. All you need each month is to make one payment using online bill pay or receive a direct deposit. Otherwise, it may be converted to a Free Checking account.

You may also have noticed that the rate chart mentioned meeting certain requirements to qualify for premium interest. To prevent earning a pittance of an APY, you need to make a minimum of 15 debit card purchases a month and elect to receive online statements.

Other features include free checks, mobile deposit, bill pay and unlimited ATM refunds. The Mastercard debit card that’s included comes with zero-liability protection and the Legacy Rewards program, in which you can earn cash back at participating retailers. Like with the Free Checking account, you may be eligible for a 0.50% discount on select personal loan rates with auto-pay.

How to get the Maximum Checking account

LegacyTexas gives you the option to apply for the Maximum Checking account by filling out an online application or heading to a branch. If you open an account online, first enter your ZIP code and indicate which account you want to open, then provide details such as your address and Social Security number. Afterward, fund the account.

SEE DETAILS Secured

on LegacyTexas Bank (TX)’s secure website

Member FDIC

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How LegacyTexas Bank’s checking accounts compare

We like that LegacyTexas Bank offers some decent perks — potential rate discounts and cashback rewards with the Legacy Rewards program. Both these checking accounts don’t have monthly maintenance fees, although Maximum Checking does have a few stipulations for you to keep the account open.

As for the rates, the Maximum Checking account offers a pretty competitive rate. It’s on par with some of the best offerings out there, including the ones on our list of the best online checking accounts. But it’s only for the first $25,000, while other places offer higher rates on all balances.

LegacyTexas Bank’s savings account options

Basic Savings

The rate seems pretty low considering it’s a savings account.
APYMinimum Balance to Earn APY
0.05%
$0.01
  • Minimum opening deposit: $50
  • Minimum balance to earn APY: 1 cent
  • Monthly account maintenance fee: $3 (this can be waived)
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: N/A

The Basic Savings account doesn’t offer a lot except a place to park your funds. Although there is no ATM access, you do get online and mobile banking access. You also get free online statements, email alerts and text message banking.

There is a $3 monthly maintenance fee, but that can be waived if you maintain a $300 minimum daily balance. Also, Federal Regulation D limits savings accounts up to six certain withdrawals a month.

How to get the Basic Savings account

If you’re a Texas resident, you can open an account by visiting a branch or via its online application. Enter your ZIP code, select which account you want to open and enter your personal details such as your name and Social Security number. After that, fund the account.

SEE DETAILS Secured

on LegacyTexas Bank (TX)’s secure website

Member FDIC

Kids Savings

This account has no monthly maintenance fee, but you’re not earning much in interest.
APYMinimum Balance to Earn APY
0.05%
$0.01
  • Minimum opening deposit: $25
  • Minimum balance to earn APY: 1 cent
  • Monthly account maintenance fee: None
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: N/A

The Kids Savings account is meant to help those 18 and younger to start a regular savings habit. The incentive is receiving gift cards. LegacyTexas Bank will give your child a savings record. For each $10 deposit, your child will receive one stamp — limit one each day. Once there are 10 stamps, you can redeem your record for a gift card.

Like with the Basic Savings account, you’re allowed up to six certain withdrawals a month because of federal Regulation D limits. You may be denied your transaction if you go over this amount.

Once your child turns 19, you have the option to convert it to the Basic Savings account.

How to get the Kids Savings account

You’ll need to open an account at your local branch or by calling customer service at 972-578-5000. Make sure you have both you and your child’s Social Security numbers, as well as your government-issued ID. You’ll need these to open the account.

SEE DETAILS Secured

on LegacyTexas Bank (TX)’s secure website

Member FDIC

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How LegacyTexas Bank’s savings accounts compare

We like the low minimum opening deposits and that you need just 1 cent to earn the advertised APY.

But these accounts fall short when it comes to the rates. Sad to say, you’re earning a pittance in interest compared to other places. You may be better off looking at our list of the best online savings accounts.

LegacyTexas Bank’s CD rates

Regular CDs

These rates aren’t the best we’ve seen, except for the promo rate.
TermAPY
3 months0.15%
6 months0.30%
12 months0.40%
18 months0.50%
18-month promo rate 2.75%
24 months0.60%
36 months0.65%
48 months0.70%
60 months0.75%
120 months1.00%
  • Minimum opening deposit: $1,000 ($10,000 for the promo rate)
  • Minimum balance amount to earn APY: $1,000 ($10,000 for the promo rate)
  • Early withdrawal penalty: Depends on length of term:
    • 90 days or less: 30 days’ interest
    • 91 days to less than 12 months: 90 days’ interest
    • 12 months or more: 180 days’ interest

If you’re looking for a guaranteed rate of return on an investment, you may want to consider opening one of these CDs. The promo CD rate is pretty competitive, but it does require a high opening deposit and it has to be opened with funds not on deposit with LegacyTexas Bank. For some, the minimum opening deposit may be too high. If that’s the case, LegacyTexas Bank has the Start-Up CD with a much lower opening deposit requirement.

Interest is compounded and credited to your account monthly. Your CD will automatically renew once it matures unless you make changes in the 10-day grace period. Changes you can make include additional deposits or withdrawals and renewing for another term.

SEE DETAILS Secured

on LegacyTexas Bank (TX)’s secure website

Member FDIC

Start-Up CD

This CD can be useful if you don’t have a lot of money to open a regular CD.
TermAPY
12 months0.10%
  • Minimum opening deposit: $100
  • Minimum balance amount to earn APY: $100
  • Early withdrawal penalty: Depends on length of term:
    • 90 days or less: 30 days’ interest
    • 91 days to less than 12 months: 90 days’ interest
    • 12 months or more: 180 days’ interest

The Start-Up CD serves two purposes — to help adults open an account for their child or for those who want to open a CD but don’t have enough money to open a regular one with LegacyTexas Bank. The idea is to help you build up your savings until you can make the minimum opening deposit for a regular CD.

If you’re looking to open this CD for your child, you’ll need to open the account in your name and add your child as the beneficiary. No matter the reason you’re opening the account, interest is compounded and credited monthly. Upon maturity, you’ll get a 10-day grace period to make changes such as withdrawals or additional deposits or renewing for another term. If you do nothing, your CD will automatically be renewed.

How to get LegacyTexas Bank’s CDs

Head to a branch or call customer service at 972-578-5000 to open an account. You’ll be asked to provide information such as your address and Social Security number.

SEE DETAILS Secured

on LegacyTexas Bank (TX)’s secure website

Member FDIC

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How LegacyTexas Bank’s CD rates compare

There are two aspects we do like — the low minimum opening deposit for the Start-Up CD and the promo rate for the regular CD. We like that there is an option for those who may not be able to set aside a lot of money and those who do have at least $1,000 and want to maximize their savings.

But the rest of the rates for the regular CDs fall slightly lower than what other competitors offer. Also, the Start-Up CD’s rate is tiny compared to what you could be earning. Do yourself a favor and shop around. You can start by looking at our list of the best CD rates.

LegacyTexas Bank’s money market account options

Money Market Checking

You can get free checks with this account, but the rates are really low.
APYMinimum Balance to Earn APY
0.02%
$0.01
0.05%
$2,500
0.05%
$7,500
0.05%
$50,000
0.05%
$250,000
  • Minimum opening deposit: $100
  • Monthly account maintenance fee: $12 (this can be waived)
  • ATM fee: $1.50 for out-of-network ATMs
  • ATM fee refund: None
  • Overdraft fee: $35

There doesn’t seem to be much of a difference between the Money Market Checking and the Maximum Checking accounts, except the rates for this account aren’t nearly as high. There’s also a $12 monthly maintenance fee, but you can get that waived if you can maintain at least a $3,000 daily balance across LegacyTexas Bank’s checking, savings and CD accounts.

Aside from getting one free box of LegacyTexas Bank custom checks a year, you get free bill pay and mobile banking. The account also comes with a Mastercard debit card where you can take advantage of zero-liability protection and the Legacy Rewards program, in which you earn cash back with participating retailers.

How to get the Money Market Checking account

Texas residents can fill out an online application or open an account by heading to a branch. If you’re opening an account online, start by entering your ZIP code and the type of account you want to open. Then enter personal details such as your name, address and Social Security number. You’ll also need to fund the account.

SEE DETAILS Secured

on LegacyTexas Bank (TX)’s secure website

Member FDIC

Money Market Savings

These tiered rates are higher than the Basic Savings account, but not by that much.
APYMinimum Balance to Earn APY
0.05%
$0.01
0.10%
$2,500
0.10%
$10,000
0.15%
$25,000
  • Minimum opening deposit: $2,500
  • Minimum balance to earn APY: 1 cent
  • Monthly account maintenance fee: $8 (this can be waived)
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: N/A

The Money Market Savings account is meant for those who want to maximize their savings, but the advertised APY isn’t that much higher than the Basic Savings account. The $8 maintenance fee seems pretty steep, though you can waive it if you maintain a $2,500 minimum daily balance. You also get free online statements, email alerts, online and mobile banking.

Regulation D limits savings accounts up to six certain withdrawals a month, but LegacyTexas Bank cites “unlimited withdrawals” on its website. Check with the bank for the latest details.

How to get the Money Market Savings account

You can open an account by filling out an online application. First, enter your ZIP code and select which account you want to open. After that, provide your personal details such as your Social Security number and a way to fund your new account.

If you prefer, you can open an account in person.

SEE DETAILS Secured

on LegacyTexas Bank (TX)’s secure website

Member FDIC

Premier Money Market Savings

There are more tiers, but these rates are still quite low.
APYMinimum Balance to Earn APY
0.05%
$0.01
0.05%
$10,000
0.05%
$25,000
0.05%
$50,000
0.10%
$100,000
0.15%
$250,000
0.20%
$1,000,000
0.25%
$5,000,000
0.25%
$25,000,000
  • Minimum opening deposit: $10,000
  • Minimum balance to earn APY: 1 cent
  • Monthly account maintenance fee: $12 (this can be waived)
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: N/A

This account is meant for those who want to stash a lot of money in an account, but the rates hardly seem worth it. The minimum opening deposit is quite high, making the Premier Money Market account inaccessible for many. Also, federal Regulation D limits account holders up to six certain withdrawals a month.

Like other LegacyTexas Bank savings accounts, you get free online statements, email alerts, online and mobile banking. There is a $12 monthly maintenance fee, but you can waive it by keeping a $10,000 minimum daily balance.

How to get the Premier Money Market Savings account

You can open a Premier Money Market Savings account in person or by completing an online application. Once you provide your ZIP code and indicate which account you want to open, fill in your personal information such as your address and Social Security number. Then you can fund your account.

SEE DETAILS Secured

on LegacyTexas Bank (TX)’s secure website

Member FDIC

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How LegacyTexas Bank’s money market accounts compare

The rates for these money market accounts are extremely low compared to what’s being offered by other banks and credit unions. Competitors such as the ones on our list of the best money market accounts also offer lower minimum opening balances, sometimes none at all. Yes, many of these accounts do limit you to six withdrawals a month, but it really doesn’t matter if you’re not planning to make a lot of transactions. We suggest you go elsewhere.

LegacyTexas Bank’s IRA account options

Regular IRA CDs

These are the same rates as the regular CDs, and they’re comparable to what’s being offered out there.
TermAPY
3 months0.35%
6 months0.30%
12 months0.40%
18 months0.50%
18-month promo rate 2.75%
24 months0.60%
36 months0.65%
48 months0.70%
60 months0.75%
120 months1.00%

Step-up IRA CDs

TermAPY
12 months0.10%
  • Minimum opening deposit: $1,000 for a regular IRA CD, $10,000 for the promo rate and $100 for a Start-Up IRA CD
  • Minimum balance amount to earn APY: $1,000 for a regular IRA CD, $10,000 for the promo rate and $100 for a Start-Up IRA CD
  • Early withdrawal penalty: Depends on length of term:
    • 90 days or less: 30 days’ interest
    • 91 days to less than 12 months: 90 days’ interest
    • 12 months or more: 180 days’ interest

These IRA CDs have the same requirements as the regular CDs, except these are retirement accounts. The IRS limits you on the maximum amount you can contribute each year. Both the regular and Start-Up CDs compound and credit interest to your account each month. When your IRA CD matures, it’ll automatically be renewed unless you make changes during the 10-day grace period. These changes can include withdrawals or additional deposits or renewing for another term.

If you want to take advantage of the promo rate, you need a minimum of $10,000 to open the account. It also needs to be funded with money not already with LegacyTexas Bank.

How to get LegacyTexas Bank’s IRA CDs

LegacyTexas Bank requires you to head to a branch to open an IRA CD. Don’t forget to bring a government-issued ID. You may be asked to provide your Social Security number.

SEE DETAILS Secured

on LegacyTexas Bank (TX)’s secure website

Member FDIC

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How LegacyTexas Bank’s IRA CD rates compare

The IRA CDs with longer terms have some decent rates, just falling slightly lower than some of its competitors. We like the promo rate, but it requires a high opening deposit. For those who are looking for IRA CDs with shorter terms, we recommend you look elsewhere — like the ones on our list of the best IRA CD rates. Otherwise, the longer terms are worth looking into.

IRA Savings

This rate barely earns any interest.
APYMinimum Balance to Earn APY
0.05%
$0.01
  • Minimum opening deposit: $50
  • Minimum balance to earn APY: 1 cent
  • Monthly account maintenance fee: None
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: N/A

The IRA Savings account could be a good option if you’re looking for an account that doesn’t lock you in for a predetermined amount of time like the IRA CD. But the rate is so low that it may not make sense to keep your funds here for the long term.

Since you don’t get a debit card, you can only access your money by calling or visiting the bank. Luckily, you’re not limited to the number of withdrawals you can make, but the IRS may penalize you if you take out money.

How to get LegacyTexas Bank’s IRA Savings account

The only way to open an IRA Savings account is in person. Don’t forget, you’ll need to provide your Social Security number and show your government-issued ID.

SEE DETAILS Secured

on LegacyTexas Bank (TX)’s secure website

Member FDIC

Overall review of LegacyTexas Bank’s banking products

LegacyTexas Bank does offer some free checking and savings accounts, which is great for those looking for an affordable option. We also like that the CDs and IRA CDs offer some pretty decent rates if you choose the lengthier terms.

Where the bank falls short are its rates for the rest of its accounts. Sure, the Maximum Checking account offers a competitive rate, but you need to meet its requirements to qualify for it. Competitors have higher rates and don’t require minimum balance or transaction requirements.

LegacyTexas Bank only offers its accounts to Texas residents, which means you may not have a choice but to go elsewhere if you don’t live there. For those who do, you may still want to look elsewhere for better rates.

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