Pennsylvania residents pay a flat 3.07% state income tax on CD interest — one of the lower state rates in the US. The best CD rates available to PA residents reach that differ by bank and term at FDIC-insured online banks, with strong local options including PSECU and a variety of community 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 Pennsylvania Residents (Online Banks, October 2026)
| Institution | Type | 12-Month APY | Min. Deposit |
|---|---|---|---|
| Popular Direct | Online | 4.50% | $10,000 |
| Marcus by Goldman Sachs | Online | 4.40% | $500 |
| EverBank | Online | 3.50% | $1,000 |
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.
Pennsylvania State Income Tax on CD Interest
Pennsylvania has a flat 3.07% income tax rate on all income, including CD interest. This applies to all PA residents regardless of income level.
After-tax yield on a hypothetical 4.50% APY CD for a PA resident (22% federal bracket):
- Federal tax: 22%
- PA state tax: 3.07%
- Total marginal rate: ~25.07%
- After-tax yield: ~3.37%
What $10,000 Earns at Top Available PA Rates
| Term | APY (Popular Direct) | Gross Interest | After-Tax (22% federal + 3.07% PA) |
|---|---|---|---|
| 6 months | 4.35% | ~$215 | ~$161 |
| 12 months | 4.50% | ~$450 | ~$337 |
| 2 years | 4.70% | ~$962 | ~$721 |
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 Pennsylvania Institutions
- PSECU — Pennsylvania State Employees Credit Union; open to PA state employees, public school employees, and their family members; competitive certificate rates
- Mid Penn Bank — Millersburg-based community bank with central PA footprint
- First Keystone Financial — Smaller community institution in Montgomery County
- Univest Financial — Southeast PA community bank; competitive rates for relationship customers
PNC Bank is headquartered in Pittsburgh and is the dominant traditional bank in PA. Standard PNC CD rates are typically low, but their Special CDs can be competitive when available — check PNC’s website for the current offer.
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