New York residents can access CD rates up to approximately 4.44% APY in September 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 compelling alternative for high-income NY residents than in most other states.
Rates shown are as of September 2026 and change frequently. Verify current rates directly with the institution before opening.
Best CD Rates Available to New York Residents (September 2026)
| Institution | Type | 12-Month APY | Min. Deposit |
|---|---|---|---|
| Online banks (top-rate) | Online | 4.30–4.44% | $0–$10,000 |
| Bethpage Federal Credit Union | NY credit union | 3.75–4.25% | $5 |
| Municipal Credit Union (MCU) | NYC credit union | 3.50–4.00% | $500 |
| Capital One 360 | 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 (progressive, ranging from roughly 4% up to approximately 10.9% at the top bracket). NYC adds an additional local income tax layer (roughly 3%–3.9%) on top of the state rate for city residents. Exact bracket thresholds adjust for inflation each year — confirm the current-year figures at tax.ny.gov before calculating an exact marginal rate.
Illustrative combined marginal rate for an NYC resident in a high state bracket (22% federal + ~9.65% NY state + ~3.876% NYC, using recent published rates as an approximation):
- Total marginal rate: ~35.5%
- After-tax yield on a 4.35% CD: ~2.80%
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 (top rate) | 1-Year Treasury | |
|---|---|---|
| Gross yield | ~4.35% | ~4.37% (per Fed H.15, Sept 14, 2026) |
| Federal taxable | Yes | Yes |
| NY state + NYC taxable | Yes | No |
| After-tax yield (22% federal + ~9.65% NY + ~3.876% NYC, illustrative) | ~2.80% | ~3.41% (federal-only) |
The Treasury’s similar gross yield combined with its state-and-city tax exemption produces a meaningfully higher after-tax yield for NYC residents. Even non-NYC New York residents in higher state brackets should compare after-tax yields before defaulting to CDs. Recalculate with your specific bracket and the live 1-year Treasury yield.
What $10,000 Earns at Top Available NY Rates
| Term | APY (top rate) | Interest Earned |
|---|---|---|
| 6 months | 4.25% | ~$210 |
| 12 months | 4.35% | ~$435 |
| 2 years | 4.35% | ~$889 |
| 5 years | 4.40% | ~$2,402 |
Figures use the APY compounding convention: A = P(1+APY)^years. These are gross figures before NY state, NYC, and federal tax.
Notable New York Credit Unions
- Bethpage FCU — Open to all US residents since 2019; Long Island-based; 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
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