What are the best CD rates in Minnesota right now?

As of May 2026, the best CD rates available to Minnesota residents reach approximately 4.50%–4.75% APY at online banks including Ally, Marcus, and Discover Bank. Minnesota credit unions such as Wings Financial Credit Union and Affinity Plus Federal Credit Union offer competitive share certificate rates. US Bank, headquartered in Minneapolis, is a major traditional bank option for MN residents.

Is CD interest taxable in Minnesota?

Yes. Minnesota taxes CD interest as ordinary income at progressive rates from 5.35% to 9.85% in 2026. This is one of the higher state income tax structures in the US. Most middle-income Minnesota residents pay 7.05% or 7.85% state income tax on CD interest, making Treasury bills (exempt from Minnesota state tax) a meaningful alternative.

Are Treasury bills better than CDs for Minnesota residents?

Treasury bill interest is exempt from Minnesota state income tax. For a MN resident paying 7.85% state tax and 22% federal tax, a T-bill at 4.35% APY produces an after-tax yield of approximately 3.45% — compared to approximately 3.22% after-tax on a CD at 4.65% APY. For most Minnesota residents, T-bills produce a meaningfully higher after-tax yield than CDs at current rates.

What is US Bank's role in Minnesota?

US Bank (U.S. Bancorp) is headquartered in Minneapolis and is one of the largest banks in the US. It has an extensive branch network across Minnesota. Standard US Bank CD rates are typically low (0.05%–1.00% APY), but US Bank periodically offers Special CD promotions with competitive rates. Check US Bank's website for current special offers.

What are Minnesota's best credit unions for CDs?

Wings Financial Credit Union (based in Apple Valley) and Affinity Plus Federal Credit Union (St. Paul-based) are among the best Minnesota credit unions for certificate rates. Wings Financial is open to aviation industry employees, Minnesota residents in certain counties, and qualifying family members. Affinity Plus is open to Minnesota residents and many employer groups.

Minnesota CD Rates 2026 — Best CDs Available to MN Residents

Minnesota residents face one of the higher state income tax burdens on CD interest in the US — 5.35% to 9.85% in 2026. This makes Treasury bills (exempt from Minnesota state income tax) an especially important comparison for MN savers. The best CD rates available to Minnesota residents reach 4.75% APY through FDIC-insured online banks.

Rates shown are as of May 2026 and change frequently. Verify current rates directly with the institution before opening.

Best CD Rates Available to Minnesota Residents (May 2026)

Institution	Type	12-Month APY	Min. Deposit
Online banks (Ally, Marcus, Discover, CIT)	Online	4.50–4.75%	$0–$2,500
Wings Financial Credit Union	MN credit union	4.00–4.50%	$500
Affinity Plus FCU	MN credit union	4.00–4.50%	$500
US Bank (Special CD, when available)	National bank (MN HQ)	4.00–4.50%	$1,000
US Bank (Standard)	National bank	0.05–1.00%	$500
Traditional big banks	National bank	0.01–0.75%	$1,000+

Minnesota State Income Tax on CD Interest (2026)

MN Taxable Income (Single)	State Rate
$0–$31,690	5.35%
$31,691–$104,090	7.05%
$104,091–$193,240	7.85%
Over $193,240	9.85%

After-tax yield on a 4.65% CD for a MN resident in the 7.85% bracket (22% fed):

Total marginal rate: ~29.85%
After-tax yield: ~3.26%

T-Bills Are Significantly More Valuable for Minnesota Residents

	12-Month CD	12-Month T-Bill
Gross yield	4.65%	4.35%
Federal taxable	Yes	Yes
MN state taxable (7.85%)	Yes	No
After-tax yield (22% fed + 7.85% MN)	~3.26%	~3.40%

At Minnesota’s typical middle-income tax rates, T-bills produce meaningfully more after-tax income than CDs on equivalent deposits. Minnesota residents should strongly consider T-bills as a primary alternative before committing to a CD.

What $10,000 Earns at Top Available MN Rates

Term	APY	Gross Interest	After-Tax (22% fed + 7.85% MN)
6 months	4.40%	~$219	~$153
12 months	4.65%	~$465	~$326
2 years	4.10%	~$838	~$588

Notable Minnesota Institutions

Wings Financial Credit Union — Apple Valley-based; open to aviation industry employees and residents of certain MN counties; consistently strong certificate rates
Affinity Plus FCU — St. Paul-based; open to Minnesota residents via various employer and association affiliations; competitive rates
University of Minnesota Credit Union (UMCU) — Open to UM students, faculty, staff, and some community members
US Bank — Minneapolis-based; standard rates are low, but Special CDs can be competitive when offered

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.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy