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 that differ by bank and term at FDIC-insured online banks, with local options through Wisconsin credit unions and Associated Bank.
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 Wisconsin 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.
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 hypothetical 4.50% CD for a typical WI resident in the ~5.3% bracket (22% federal + 5.3% WI):
- Total marginal rate: ~27.3%
- After-tax yield: ~3.27%
T-Bills vs. CDs for Wisconsin Residents
Treasury bill interest is exempt from Wisconsin state income tax.
| 12-Month CD (hypothetical) | 1-Year Treasury | |
|---|---|---|
| Gross yield (hypothetical, same for both) | 4.50% | 4.50% |
| Federal taxable | Yes | Yes |
| WI state taxable (~5.3%, illustrative) | Yes | No |
| After-tax yield (22% federal + 5.3% WI) | ~3.27% | ~3.51% (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 (Popular Direct) | Gross Interest | After-Tax (22% federal + 5.3% WI, illustrative) |
|---|---|---|---|
| 6 months | 4.35% | ~$215 | ~$156 |
| 12 months | 4.50% | ~$450 | ~$327 |
| 2 years | 4.70% | ~$962 | ~$699 |
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 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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