What are the best CD rates in New York right now?

As of May 2026, the best CD rates available to New York residents reach approximately 4.50%–4.75% APY at top online banks including Ally, Marcus by Goldman Sachs, and Discover Bank. Local New York options include Bethpage Federal Credit Union and Municipal Credit Union, which offer competitive share certificate rates. Rates change frequently — verify current rates before opening.

Is CD interest taxable in New York?

Yes. New York State taxes CD interest as ordinary income at rates ranging from 4% to 10.9%. New York City residents pay an additional NYC income tax of 3.078%–3.876%. Combined, a New York City resident in the top brackets could pay state and city income tax of over 14% on CD interest — making Treasury bills (exempt from NY state and city tax) particularly competitive.

Are Treasury bills better than CDs for New York residents?

Treasury bill interest is exempt from New York State and New York City income tax (though still subject to federal tax). For NYC residents in the 10.9% NY state bracket paying an additional 3.876% NYC tax, a T-bill at 4.35% APY may produce a better after-tax yield than a CD at 4.65% APY. New York residents — especially NYC residents — should always compare after-tax yields on CDs vs. T-bills before choosing.

What is Bethpage Federal Credit Union and can anyone join?

Bethpage Federal Credit Union is a Long Island-based credit union that opened its membership to all US residents in 2019. It consistently offers competitive share certificate (CD) rates and is NCUA-insured — the credit union equivalent of FDIC insurance. Anyone in the US can join by opening a savings account with a $5 deposit.

Do CD rates differ in New York City vs. upstate New York?

Online bank and national credit union CD rates are identical regardless of whether you're in NYC, Buffalo, or Albany — they're set nationally, not by location. The only difference for NYC residents is the additional NYC income tax layer on CD interest, which affects after-tax yield. Local bank and credit union rates may vary slightly by branch area.

New York CD Rates 2026 — Best CDs Available to NY Residents

New York residents can access CD rates up to 4.75% APY in May 2026 through FDIC-insured online banks. New York — and especially New York City — has a high combined state and local income tax burden on CD interest, making Treasury bills a more compelling alternative for high-income NY residents than in most other states.

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

Best CD Rates Available to New York Residents (May 2026)

Institution	Type	12-Month APY	Min. Deposit
Online banks (Ally, Marcus, Discover, CIT)	Online	4.50–4.75%	$0–$2,500
Bethpage Federal Credit Union	NY credit union	4.00–4.50%	$5
Municipal Credit Union (MCU)	NYC credit union	3.75–4.25%	$500
Capital One (headquartered in McLean, VA)	National bank	3.75–4.25%	$0
Traditional big banks (Chase, Citi, BofA)	National bank	0.01–1.00%	$1,000+

New York State and City Tax on CD Interest

CD interest is taxable income in New York State and — for NYC residents — subject to New York City income tax as well.

New York State income tax rates (2026, simplified):

NY Income (Single)	State Rate
$0–$17,150	4%
$17,151–$23,600	4.5%
$23,601–$27,900	5.25%
$27,901–$161,550	5.85%
$161,551–$323,200	6.85%
$323,201–$2,155,350	9.65%
Over $2,155,350	10.9%

NYC additional income tax (for NYC residents): 3.078%–3.876%

Combined for an NYC resident in the 9.65% state bracket (22% federal):

Federal tax: 22%
NY state: 9.65%
NYC tax: ~3.876%
Total marginal tax on CD interest: ~35.5%
After-tax yield on a 4.65% CD: ~3.00%

Treasury Bills — Especially Valuable for NY Residents

Treasury bill interest is exempt from New York State and New York City income tax (federal tax still applies).

	12-Month CD	12-Month T-Bill
Gross yield	4.65%	4.35%
Federal taxable	Yes	Yes
NY state + NYC taxable	Yes	No
After-tax yield (22% fed + 9.65% NY + 3.876% NYC)	~3.00%	~3.40%

The T-bill’s lower gross yield produces a significantly higher after-tax yield for NYC residents. Even non-NYC New York residents in the 9.65% bracket should compare after-tax yields before defaulting to CDs.

What $10,000 Earns at Top Available NY Rates

Term	APY	Interest Earned
6 months	4.40%	~$219
12 months	4.65%	~$465
2 years	4.10%	~$838
5 years	3.65%	~$1,970

Notable New York Credit Unions

Bethpage FCU — Open to all US residents since 2019; Long Island-based; competitive rates; NCUA-insured
Municipal Credit Union (MCU) — Open to NYC employees and affiliated workers; large NYC institution
NYCB / Flagstar — New York Community Bancorp, now merged with Flagstar Bank; traditional bank with branches across the metro

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