Wisconsin residents pay roughly 3.5%–7.65% state income tax on CD interest, depending on bracket. The best CD rates available to WI residents reach approximately 4.44% APY through FDIC-insured online banks, with local options through Wisconsin credit unions and Associated Bank.
Rates shown are as of September 2026 and change frequently. Verify current rates directly with the institution before opening.
Best CD Rates Available to Wisconsin Residents (September 2026)
| Institution | Type | 12-Month APY | Min. Deposit |
|---|---|---|---|
| Online banks (top-rate) | Online | 4.30–4.44% | $0–$10,000 |
| Summit Credit Union | WI credit union | 3.75–4.25% | $500 |
| UW Credit Union | WI credit union | 3.75–4.25% | $500 |
| Educators Credit Union | WI credit union | 3.50–4.00% | $500 |
| Associated Bank (promotional, when avail.) | WI regional bank | Varies — check current offer | $1,000 |
| Traditional big banks | National bank | 0.01–0.75% | $1,000+ |
Wisconsin State Income Tax on CD Interest
Wisconsin uses a progressive income tax structure ranging from roughly 3.5% at the lowest bracket to 7.65% at the highest. Confirm the current-year bracket thresholds at revenue.wi.gov, since exact dollar cutoffs are subject to periodic adjustment.
Illustrative after-tax yield on a 4.35% CD for a typical WI resident in the ~5.3% bracket (22% federal + 5.3% WI):
- Total marginal rate: ~27.3%
- After-tax yield: ~3.16%
T-Bills vs. CDs for Wisconsin Residents
Treasury bill interest is exempt from Wisconsin state income tax.
| 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 |
| WI state taxable (~5.3%, illustrative) | Yes | No |
| After-tax yield (22% federal + 5.3% WI) | ~3.16% | ~3.41% (federal-only) |
At the ~5.3% state rate, the Treasury’s after-tax yield is somewhat higher than the CD’s. For WI residents in the 7.65% top bracket, Treasuries produce a meaningfully higher after-tax return.
What $10,000 Earns at Top Available WI Rates
| Term | APY (top rate) | Gross Interest | After-Tax (22% federal + 5.3% WI, illustrative) |
|---|---|---|---|
| 6 months | 4.25% | ~$210 | ~$153 |
| 12 months | 4.35% | ~$435 | ~$316 |
| 2 years | 4.35% | ~$889 | ~$646 |
Figures use the APY compounding convention: A = P(1+APY)^years.
Notable Wisconsin Credit Unions
- Summit Credit Union — Madison-based; open to many Dane County and surrounding Wisconsin county residents
- UW Credit Union — Madison-based; open to University of Wisconsin affiliates, graduates, and Dane County residents
- Educators Credit Union — Racine-based; open to WI education employees and their family members
- Capital Credit Union — Green Bay area; strong local credit union for northeastern WI residents
Associated Bank — Wisconsin’s Largest Headquartered Bank
Associated Bank (Green Bay) offers both standard and occasional promotional CD rates. Standard rates are typically well below online-bank rates; promotional CDs (often with a new-money requirement) can be more competitive when available — check Associated Bank’s website for the current offer.
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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