Lone Star National Bank review: Hispanic-owned bank in South Texas with low minimum opening deposits

Table of Contents: Masthead Sticky

• Lone Star National Bank (Member FDIC) is a Hispanic-owned bank with 33 branches in South Texas.
• Lone Star National Bank pays interest rates that are competitive with many brick-and-mortar banks.
• The bank’s rates vary for money market and savings accounts depending on your balance.
• See Insider’s picks for the best high-yield savings accounts »

Overall bank rating

Feature	Insider rating (out of 5)
Savings	3.25
Checking	3
CD	3.25
Money market account	2.75
Trustworthiness	5
Total	3.5

Pros and cons

Pros	Cons
Hispanic-owned bank 33 branches in South Texas Low minimum opening deposits	Only available in South Texas Limited to three withdrawals per month from your savings account Interest compounds quarterly on savings and money market accounts

Savings

Lone Star National Bank Personal Savings Account

You might like the Lone Star National Bank Personal Savings Account if you can keep a $300 balance, because then you’ll waive the $5 monthly service fee. If you think you may exceed Lone Star’s monthly withdrawal limit, you might prefer other banks that have more lax limits.

If you deposit between $50 and $24,999, you’ll earn 0.10% on your balance, while you’ll earn 0.15% on any amount over $25,000. If you want to snag a high APY, you can probably get a better interest rate with a high-yield savings account.

Checking

Lone Star National Bank Smart Choice Checking Account

Lone Star National Bank Smart Choice Checking Account is a solid option if you want an account with a low minimum opening deposit. You can also choose from two other checking accounts, including one that will pay you tier-based interest rates on your balance.

CD

Lone Star National Bank Certificate of Deposit

Lone Star pays competitive rates on CDs compared to other brick-and-mortar institutions, but the rates are lower than what you’ll earn with many online banks. If you want a term shorter than six months or longer than five years, you’ll have to consider another bank.

Money market account

Lone Star National Bank Premium Star Money Market Account

The Lone Star National Bank Premium Star Money Market Account requires you to put a lot of money down up front, and you’ll get solid interest rates depending on your balance. However, interest only compounds quarterly and the $15 monthly service fee is higher than at other banks, so this account may not be the best choice for you.

How Lone Star National Bank works

Lone Star National Bank Smart Choice Checking Account is a Hispanic-owned brick-and-mortar institution with 33 branches in South Texas. The institution has branches in:

• Brownsville
• Edinburg
• Harlingen
• Hidalgo
• Mcallen
• Mission
• Pharr
• Rio Grande City
• Roma
• San Antonio
• South Padre Island
• Weslaco

The bank has free ATMs in Texas and is a member of the Allpoint ATM network, with free machines around the US.

The mobile app has 4.2 out of 5 stars on the Google Play store but just 1.9 out of 5 stars on the Apple store. However, there aren’t many reviews of the app on either marketplace.

You can reach Lone Star customer service by phone Monday through Friday, 7:45 a.m. to 6:30 p.m. CT and on Saturday from 9:00 a.m. to 1:00 p.m. CT.

Your deposits are FDIC insured for up to $250,000 for an individual account and $500,000 for a joint account.

Is Lone Star National Bank trustworthy?

The Better Business Bureau gives Lone Star National Bank an A+ in trustworthiness. A great BBB grade means a company advertises truthfully, is open about business practices, and responds effectively to consumer complaints.

However, a solid BBB rating doesn’t ensure you’ll have a good relationship with a bank. You might want to read online customer reviews or reach out to family and friends to hear about their experiences with Lone Star.

Lone Star doesn’t have any recent public controversies.

Between its top-notch BBB grade and sparkling history, you might determine that Lone Star is the right bank for you.

How Lone Star National Bank compares to similar banks

We’ve compared Lone Star National Bank to two other Hispanic-owned institutions located in Texas: Falcon International Bank and Rio Bank.

Locations Texas	Locations Texas	Locations Texas
Savings APY Lone Star National Bank Personal Savings Account	Savings APY 0.10%	Savings APY 0.05%
Open an account	Open an account	Open an account

Lone Star National Bank review vs. Falcon International Bank review

Lone Star National Bank has more branch locations and ATM access than Falcon International Bank. Lone Star offers a tier-based checking account that earns interest, while Falcon International only offers standard checking accounts.

You’ll have to bank with Lone Star if you’re looking to open a money market account, as Falcon International doesn’t have that option available.

Lone Star National Bank review vs. Rio Bank review

Lone Star National Bank offers better rates on savings accounts than Rio Bank, though the difference between the two banks is marginal.

If branch access is important to you, Lone Star has roughly double the branch locations of Rio. Both banks offer savings accounts specifically targeted at young people. Both banks also have mobile apps and have received similar reviews on the Google Play store.

Ryan Wangman is a reviews fellow at Personal Finance Insider reporting on mortgages, refinancing, bank accounts, bank reviews, and loans. In his past experience writing about personal finance, he has written about credit scores, financial literacy, and homeownership.

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