Ohio residents pay roughly 0%–3.99% state income tax on CD interest — a moderate tax burden compared to high-tax states. The best CD rates available to Ohio residents reach approximately 4.44% APY through FDIC-insured online banks, with major national banks headquartered in Ohio (Fifth Third, KeyBank, Huntington) offering additional local options.
Rates shown are as of September 2026 and change frequently. Verify current rates directly with the institution before opening.
Best CD Rates Available to Ohio Residents (September 2026)
| Institution | Type | 12-Month APY | Min. Deposit |
|---|---|---|---|
| Online banks (top-rate) | Online | 4.30–4.44% | $0–$10,000 |
| Wright-Patt Credit Union | OH credit union | 3.75–4.25% | $500 |
| Kemba Financial Credit Union | OH credit union | 3.50–4.00% | $500 |
| Fifth Third Bank (standard) | National bank (OH HQ) | 0.01–0.75% | $500 |
| KeyBank (standard) | National bank (OH HQ) | 0.01–0.50% | $2,500 |
| Huntington Bank (standard) | National bank (OH HQ) | 0.01–0.50% | $1,000 |
Ohio State Income Tax on CD Interest
Ohio uses a progressive income tax structure with a bottom bracket at 0% and a top marginal rate around 3.99%. Confirm the current-year bracket thresholds at tax.ohio.gov, since Ohio periodically adjusts both the brackets and the top rate.
Illustrative after-tax yield on a 4.35% APY CD for a typical OH resident (22% federal + ~2.75% state, illustrative mid-bracket rate):
- Total marginal rate: ~24.75%
- After-tax yield: ~3.27%
What $10,000 Earns at Top Available OH Rates
| Term | APY (top rate) | Gross Interest | After-Tax (22% federal + ~2.75% OH, illustrative) |
|---|---|---|---|
| 6 months | 4.25% | ~$210 | ~$158 |
| 12 months | 4.35% | ~$435 | ~$327 |
| 2 years | 4.35% | ~$889 | ~$669 |
Figures use the APY compounding convention: A = P(1+APY)^years.
Ohio’s Big-Three Bank Headquarters
Ohio is unusual in hosting three major US bank headquarters:
- Fifth Third Bank (Cincinnati) — Standard CDs are typically well below online-bank rates; occasionally offers promotional CDs
- KeyBank (Cleveland) — Standard CDs are typically well below online-bank rates; requires $2,500 minimum
- Huntington Bank (Columbus) — Standard CDs are typically well below online-bank rates; various terms available
All three periodically offer promotional CDs — check their websites for current special offers.
Notable Ohio Credit Unions
- Wright-Patt Credit Union — Dayton area; one of the largest Ohio credit unions; open to many Wright-Patterson AFB affiliates and Dayton-area residents
- Kemba Financial Credit Union — Columbus-based; open to many central Ohio residents and employers
- Superior Plus Credit Union — Cleveland-area option
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