California CD Rates 2026 — Best CDs Available to CA Residents

California residents can open CDs at online banks whose rates differ by bank and term (see the table below, each dated) through FDIC-insured online banks — the same national rates available to savers anywhere in the US. The two California-specific factors to understand: state income tax up to 13.3% applies to CD interest, and California’s large credit union ecosystem gives residents excellent local options alongside the national online banks.

Bank rates below were read from each bank’s own page, with the date shown under the table. Verify current rates directly with the institution before opening.

Best CD Rates Available to California Residents (Online Banks, October 2026)

Rates read from each bank’s own page: Popular Direct October 5, 2026, Marcus October 15, 2026, EverBank October 9, 2026. These online banks accept customers in any state. We did not check rates at local credit unions and community banks, so they are not listed with rates here; ask them directly.

Online banks consistently offer among the highest nationally available rates. Local California credit unions are strong alternatives, particularly for members who value in-person service or already have a credit union membership. Confirm current rates directly, since credit union certificate rates shift with market conditions.

California State Income Tax on CD Interest

CD interest is taxed as ordinary income in California, under a progressive state income tax structure that tops out at 13.3% (12.3% top bracket plus a 1% Mental Health Services surtax on income over $1 million). Exact bracket thresholds adjust for inflation each year — confirm the current-year thresholds at ftb.ca.gov before estimating your precise marginal rate.

For most California savers, CD interest is taxed at the 9.3% state marginal rate on top of federal income tax. Using a hypothetical 4.50% APY 1-year CD as an example:

• Federal tax only (22% bracket): after-tax yield ≈ 3.51%
• Federal + California state tax (9.3% bracket): after-tax yield ≈ 3.09%

Treasury Bills as a California Alternative

California’s high state income tax makes Treasury bills particularly attractive as a CD alternative:

In this example, the Treasury’s similar gross yield combined with its state tax exemption produces a meaningfully higher after-tax yield for a California resident in the 9.3% state bracket. California residents in the 9.3%+ bracket should compare after-tax yields before choosing between CDs and Treasuries — and recompute using the live 1-year Treasury yield, since it moves daily.

What $10,000 Earns at the Best Available CA Rate

Figures use Popular Direct’s APYs as of October 5, 2026 (it requires $10,000 to open a CD) and the compounding convention A = P(1+APY)^years.

Notable California Credit Unions for CDs

• Golden 1 Credit Union — Open to all California residents; one of the largest credit unions in the US. Offers share certificates (CDs) at competitive rates.
• SchoolsFirst Federal Credit Union — Open to current and former school employees in California. Consistently competitive certificate rates.
• California Credit Union — Open to education community and affiliated groups in Southern California.
• Patelco Credit Union — Open to Bay Area residents and certain employers. Competitive certificate rates.

Membership requirements vary. Most California credit unions are open to all state residents or have broad field-of-membership rules.

Related Articles

• Best CD Rates of 2026
• 1-Year CD Rates 2026
• CDs vs. Treasury Bills 2026
• Ally Bank CD Rates 2026
• High-Yield Savings vs. CD

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.