Wisconsin residents pay 3.54%–7.65% state income tax on CD interest in 2026. The best CD rates available to WI residents reach 4.75% APY through FDIC-insured online banks, with strong local options through Wisconsin credit unions and Associated Bank.
Rates shown are as of May 2026 and change frequently. Verify current rates directly with the institution before opening.
Best CD Rates Available to Wisconsin Residents (May 2026)
| Institution | Type | 12-Month APY | Min. Deposit |
|---|---|---|---|
| Online banks (Ally, Marcus, Discover, CIT) | Online | 4.50–4.75% | $0–$2,500 |
| Summit Credit Union | WI credit union | 4.00–4.50% | $500 |
| UW Credit Union | WI credit union | 4.00–4.50% | $500 |
| Educators Credit Union | WI credit union | 3.75–4.25% | $500 |
| Associated Bank (promotional, when avail.) | WI regional bank | 4.00–4.50% | $1,000 |
| Traditional big banks | National bank | 0.01–0.75% | $1,000+ |
Wisconsin State Income Tax on CD Interest (2026)
| WI Taxable Income (Single) | State Rate |
|---|---|
| $0–$13,810 | 3.54% |
| $13,811–$27,630 | 4.65% |
| $27,631–$304,170 | 5.30% |
| Over $304,170 | 7.65% |
After-tax yield on a 4.65% CD for a typical WI resident (22% fed + 5.30% WI):
- Total marginal rate: ~27.3%
- After-tax yield: ~3.38%
T-Bills vs. CDs for Wisconsin Residents
Treasury bill interest is exempt from Wisconsin state income tax.
| 12-Month CD | 12-Month T-Bill | |
|---|---|---|
| Gross yield | 4.65% | 4.35% |
| Federal taxable | Yes | Yes |
| WI state taxable (5.30%) | Yes | No |
| After-tax yield (22% fed + 5.30% WI) | ~3.38% | ~3.40% |
At the 5.30% state rate, CD and T-bill after-tax yields are nearly equivalent. For WI residents in the 7.65% bracket, T-bills produce a meaningfully higher after-tax return.
What $10,000 Earns at Top Available WI Rates
| Term | APY | Gross Interest | After-Tax (22% fed + 5.30% WI) |
|---|---|---|---|
| 6 months | 4.40% | ~$219 | ~$160 |
| 12 months | 4.65% | ~$465 | ~$338 |
| 2 years | 4.10% | ~$838 | ~$609 |
Notable Wisconsin Credit Unions
- Summit Credit Union — Madison-based; open to many Dane County and surrounding Wisconsin county residents; consistently competitive certificate rates; ~$6B in assets
- UW Credit Union — Madison-based; open to University of Wisconsin affiliates, graduates, and Dane County residents; strong rates and digital tools
- Educators Credit Union — Racine-based; open to WI education employees and their family members; competitive certificate rates
- Capital Credit Union — Green Bay area; strong local credit union with competitive rates for northeastern WI residents
Associated Bank — Wisconsin’s Largest Headquartered Bank
Associated Bank (Green Bay) offers both standard and occasional promotional CD rates:
- Standard CDs: 0.05%–1.00% APY (varies by term and market)
- Promotional CDs: 4.00%–4.50%+ APY when available, with new money requirement
For most WI residents, online banks and local credit unions offer better standard rates than Associated Bank’s base CD schedule.
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