Lone Star Bank Review 2021

Published January 2021 by Libby Wells

AT A GLANCE
4.3

Bankrate Score

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Highly Rated App

Lone Star Bank is suitable for consumers in the Houston area who need basic personal banking services, and for local businesses.

  • CDs
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    4.2
  • Savings
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    4.2
  • Checking
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    4.3
  • MMAs
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    3.9
  • MORE HIGH-YIELD OPTIONS
    MORE HIGH-YIELD OPTIONS
    Goldman Sachs Bank USA

    Member FDIC

    Savings account

    0.50 % APY

    $ 0

    Min. balance for APY

    American Express National Bank

    Member FDIC

    Savings account

    0.50 % APY

    $ 1

    Min. balance for APY

    Axos Bank

    Member FDIC

    Checking account

    1.25 % APY

    $ 50

    To open

    $ 0

    To avoid fees

    Overall

    4.3

    Bankrate Score

    Based in Houston, Lone Star Bank is a federally insured community bank serving individual consumers and businesses, small and large.

    What we like

    • It has a high-rated mobile app for iOS devices.

    • You can make mobile deposits and pay bills online.

    • You can make third-party payments.

    What we don't

    • It does not have an ATM network.

    • It has only four branches.

    CD rates

    4.2

    Bankrate Score

    Lone Star Bank offers 15 terms for CDs, ranging from 7-29 days to 60 months. Opening a CD requires a minimum deposit of $1,000 or $100,000. The yields are competitive.

    If you withdraw money before the term ends, you incur penalty fees, which reduce your earnings.

    What we like

    • Lone Star Bank pays a competitive APY.

    • There are many CD terms to choose from.

    What we don't

    • You need at least $1,000 to open a CD.

    • The APY on a 5-year CD of at least $100,000 is no better than a $1,000 CD with the same term.

    • You can find higher yields, especially at online banks.

    Savings accounts

    4.2

    Bankrate Score

    OTHER SAVINGS OFFERS YOU MAY LIKE
    Goldman Sachs Bank USA

    Member FDIC

    Savings account

    0.50 % APY

    $ 0

    Min. balance for APY

    Lone Star Bank has a Personal Savings account that pays competitive to top-tier annual percentage yields. The account provides access to online banking and bill pay and mobile banking. There is a $6 quarterly service charge unless you keep $200 in the account or link it to a $1,000 CD at the bank.

    What we like

    • The interest rate is very competitive.

    • The minimum to open is a manageable $200.

    • The account features access to online and mobile banking.

    • The service charge, should you incur it, is only $6 per quarter.

    What we don't

    • More than six withdrawals per month triggers a penalty fee.

    • With few branches and no ATM network, it's harder to access your cash.

    Checking accounts

    4.3

    Bankrate Score

    OTHER CHECKING OFFERS YOU MAY LIKE
    Axos Bank

    Member FDIC

    Checking account

    1.25 % APY

    $ 50

    To open

    $ 0

    To avoid fees

    Lone Star Bank has three checking accounts, two of which pay a decent interest rate. All come with a Visa debit card, online banking and bill pay and mobile banking. ATM fees are refunded and the first order of checks is free.

    What we like

    • The Personal Interest and Senior Interest checking accounts pay a competitive APY.

    • ATM fees are refunded.

    • The accounts feature online banking and bill pay and mobile banking (including mobile deposits).

    • The first order of checks is free.

    • You get up to four cashier's checks per month free.

    • The Senior Interest checking for customers 55 and up has no monthly fee.

    What we don't

    • The Personal Interest Checking account has a $10 monthly fee unless a $500 minimum balance is maintained.

    • With no ATM network, it's harder to access cash.

    • Both interest-bearing checking accounts require $250 to open.

    Money market accounts

    3.9

    Bankrate Score

    Lone Star Bank offers a Personal Money Market account, which requires a minimum of $250 to open. The APYs are competitive, but some online banks pay more.

    You need at least $500,000 in the account to earn the highest yield.

    What we like

    • Lone Star Bank's MMA pays a competitive interest rate.

    • The opening deposit of $250 is reasonable.

    What we don't

    • You must have at least $500,000 in the account to earn the highest yield.

    Bank experience

    Lone Star Bank has few branches and no ATM network, but it does offer online and mobile banking, which allows you to access account information, deposit checks, transfer money and pay your bills. Its mobile app sends alerts and notifications about upcoming bills or low balances.

    About Lone Star Bank

    Lone Star Bank is an independent, privately owned community bank based in Houston, with four branches in the area. It is primarily a commercial bank, but it also offers checking, savings and money market accounts, certificates of deposit, mortgages and personal loans for individual consumers. Lone Star is FDIC-insured and uses two services (ICS and CDARS) that enable customers with very large deposits to protect all their money while earning a return.

    Libby Wells Twitter Created with Sketch. @EAWELLS77

    Libby Wells Twitter Created with Sketch. @EAWELLS77

    Libby Wells, Bankrate's chief copy editor, has more than 30 years of experience as a writer and editor for newspapers, magazines and online publications in South Florida. She has spent most of her career at The Palm Beach Post and Palm Beach Daily News, but she also did a previous stint at Bankrate as the credit card reporter. Libby is a native of Kentucky and a graduate of the University of Kentucky, where she earned a bachelor's degree in journalism. She's an avid fan of the legendary UK Wildcats basketball team.