Finding the best savings account in Texas means more than just comparing APYs. Texas residents need to factor in state income tax on interest (Texas has no state income tax, so all savings account interest is subject only to federal income tax.), FDIC insurance, and account minimums. Here are the top picks for Texas residents in 2026.
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🏛 Texas Residents: Texas's no-income-tax status means every dollar of savings interest stays in your pocket (minus federal tax). A Texas resident earning $2,000/year in savings interest saves $100–$200 vs. a California resident in the same tax bracket.
Are savings accounts taxed in Texas?
Texas has no state income tax, so all savings account interest is subject only to federal income tax. Interest earned in savings accounts is considered ordinary income and must be reported on your federal and state tax returns.
What is the best savings account in Texas right now?
As of March 2026, Marcus by Goldman Sachs (4.50% APY) and SoFi (4.60% APY with direct deposit) offer the best rates available to Texas residents. Both are FDIC insured with no monthly fees.
Can I open an online savings account if I live in Texas?
Yes. All major online savings accounts (Marcus, Ally, SoFi, Discover, American Express) are available to Texas residents. Online accounts typically offer significantly higher APYs than local banks and credit unions.