What are the best CD rates in Washington State right now?

As of May 2026, the best CD rates available to Washington State residents reach approximately 4.50%–4.75% APY at top online banks including Ally, Marcus, and Discover Bank. Washington State credit unions such as BECU (Boeing Employees Credit Union) — the largest credit union in the Pacific Northwest — offer competitive share certificate rates. Rates change frequently — verify before opening.

Is CD interest taxable in Washington State?

Washington State has no personal income tax. CD interest earned by Washington residents is subject only to federal income tax — not state income tax. Note: Washington enacted a capital gains tax in 2023 (7% on gains over $262,000), but this applies to capital gains, not to CD interest. CD interest is ordinary income, not a capital gain, so the capital gains tax does not apply.

Does Washington's capital gains tax affect CD interest?

No. Washington's 7% capital gains tax (on long-term gains over $262,000 annually) does not apply to CD interest. CD interest is classified as ordinary income — interest income — not a capital gain. Washington residents pay only federal income tax on CD earnings.

What is BECU and can anyone join?

BECU (Boeing Employees Credit Union) is the largest credit union in Washington State and the fourth-largest in the US by assets. Despite its name, BECU is not limited to Boeing employees — membership is open to anyone who lives, works, worships, or attends school in King, Pierce, or Snohomish counties in Washington, among other eligibility paths. BECU consistently offers competitive share certificate (CD) rates.

Should Washington residents compare CDs to Treasury bills?

Washington residents pay only federal tax on both CD interest and T-bill interest. There is no state tax differential between the two (unlike California or New York, where T-bills are exempt from state income tax). For Washington residents, the choice between CDs and T-bills is based on yield, convenience, and FDIC coverage — not state tax considerations.

Washington State CD Rates 2026 — Best CDs for WA Residents

Washington State residents benefit from no state income tax on CD interest — one of only nine US states with this advantage. CD interest is taxed at the federal level only. The best CD rates available to Washington residents reach 4.75% APY in May 2026 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 Washington Residents (May 2026)

Institution	Type	12-Month APY	Min. Deposit
Online banks (Ally, Marcus, Discover, CIT)	Online	4.50–4.75%	$0–$2,500
BECU	WA credit union	4.00–4.50%	$500
WaFd Bank (Washington Federal)	WA regional bank	3.75–4.25%	$1,000
Sound Credit Union	WA credit union	3.75–4.25%	$500
Traditional big banks	National bank	0.01–1.00%	$1,000+

Washington State Tax on CD Interest

Washington has no state personal income tax. CD interest is subject to federal income tax only.

Washington’s 2023 capital gains tax (7% on gains over $262,000) does not apply to CD interest — CD interest is ordinary income, not a capital gain. Washington residents in all income brackets pay the same federal-only tax treatment on CD earnings as residents of Texas and Florida.

What $10,000 Earns at Top WA Rates

Term	APY	Gross Interest	After-Tax (22% bracket)
6 months	4.40%	~$219	~$171
12 months	4.65%	~$465	~$363
2 years	4.10%	~$838	~$654
5 years	3.65%	~$1,970	~$1,537

BECU — Washington’s Largest Credit Union

BECU is the standout local option for Washington CD savers:

Assets: $30B+ — fourth largest credit union in the US
Membership: Open to residents of King, Pierce, Snohomish, and other WA counties; also open through employer and association affiliations
Products: Share certificates (CDs) across multiple terms; competitive rates frequently near or matching top online banks
Insurance: NCUA-insured (credit union equivalent of FDIC)

BECU’s share certificate rates are often within 0.10%–0.25% of the best online bank rates, with the added benefit of in-person service across Washington.

Washington State Credit Unions Worth Checking

BECU — Largest in WA; open to most King/Pierce/Snohomish residents
Sound Credit Union — Tacoma-based; open to Pierce County and surrounding areas
Salal Credit Union — Seattle-based; open to Seattle-area residents through various eligibility paths
Washington State Employees Credit Union (WSECU) — Open to WA state government employees and family members

T-Bills vs. CDs for Washington Residents

Unlike California or New York residents, Washington residents get no additional state tax benefit from T-bills — both CDs and T-bills are taxed at the federal level only. Choose between them based on yield and convenience, not tax considerations.

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