TL;DR: Top nationally available CD APYs open to NY residents on September 25, 2026 are 4.35-4.50% on 1-yr terms and 4.35-4.50% on 5-yr terms (DepositAccounts). But NY State (4-10.9%) plus NYC city tax (3.078-3.876% for NYC residents) destroys CD after-tax yield. For most NY residents, especially NYC residents and high earners, Treasuries (state + city exempt) and MYGAs (tax deferred) beat CDs decisively. CDs only make sense for short-term liquidity, no-penalty/emergency money, or residents in the lowest NY brackets.
| Bank/CU | Term | APY | Min | Type / source |
|---|---|---|---|---|
| HAB Bank | 1 yr | 4.50% | $1,500 | Online, nationwide (DepositAccounts 9/25/2026) |
| EagleBank | 1 yr | 4.45% | $1,000 | Online, nationwide (DepositAccounts 9/25/2026) |
| Sallie Mae Bank | 1 yr | 4.20% | $2,500 | Online bank (salliemae.com 9/24/2026) |
| Ally Bank | 1 yr | 4.15% | $0 | Online bank (ally.com 9/24/2026) |
| Synchrony Bank | 1 yr | 4.10% | $0 | Online bank (synchrony.com 9/24/2026) |
| Marcus by Goldman Sachs | 1 yr | 3.90% | $500 | Online bank (marcus.com 9/24/2026) |
| Popular Direct | 3 yr | 4.50% | $10,000 | Online, nationwide (DepositAccounts 9/25/2026) |
| Marcus by Goldman Sachs | 3 yr / 5 yr | 4.35% | $500 | Online bank (marcus.com 9/24/2026) |
| Bread Savings | 5 yr | 4.50% | $1,500 | Online bank (DepositAccounts 9/25/2026) |
| Ally Bank | 5 yr | 4.10% | $0 | Online bank (ally.com 9/24/2026) |
| FourLeaf Federal Credit Union (formerly Bethpage FCU) | 13 mo / 5 yr | 4.00% / 4.15% | $50 | NY credit union (fourleaffcu.com 9/25/2026) |
CD interest in NY is taxed at:
For a NYC resident in the 32% federal + 6.85% NY State + 3.876% NYC + 3.8% NIIT brackets, combined marginal rate is ~46.5%. A 4.50% CD nets only ~2.41% after-tax.
U.S. Treasury interest is exempt from BOTH NY State AND NYC city tax. This is one of the strongest cases for Treasuries in the country.
Worked example: NYC resident, 32% federal + NY+NYC + NIIT = 46.5% combined.
| Vehicle | Gross yield | State+city exempt? | After-tax yield |
|---|---|---|---|
| 1-yr CD (top national, HAB Bank 4.50%) | 4.50% | No | 2.41% |
| 1-yr Treasury (4.50% par, 9/25/2026) | 4.50% | Yes (both) | 2.89% |
At the same 4.50% gross, the Treasury nets about 48 bps more than the CD after NY + NYC tax.
NYC resident, 32% federal + NY+NYC + NIIT = 46.5% combined. $250K, 5 years.
| Vehicle | Gross rate | Year 5 after-tax value | After-tax CAGR |
|---|---|---|---|
| 5-yr CD (Bread Savings 4.50%) | 4.50% | $281,578 | 2.41% |
| 5-yr Treasury (4.98% par, 9/25/2026) | 4.98% | $292,603 | 3.20% |
| 5-yr A-rated MYGA (benchmark low) | 5.50% | $293,555 | 3.26% |
| 5-yr A-rated MYGA (benchmark high) | 6.00% | $295,238 | 3.38% |
For NYC residents, the MYGA ends $11,977 to $13,660 ahead of the CD on $250K over 5 years, but only about $950 to $2,600 ahead of a 5-year Treasury at September 2026 yields (MYGA interest taxed once at year 5 at the same 46.5% rate). Deferring into a lower-bracket year widens the MYGA edge.
As of September 25, 2026, the top nationally available 1-yr CDs pay 4.35-4.50% APY (DepositAccounts), led by online banks such as HAB Bank, EagleBank and Sallie Mae. FourLeaf FCU (formerly Bethpage) pays 4.00% on a 13-month certificate; check TEG FCU and USALLIANCE directly.
Yes, both NY State (4-10.9%) and, for NYC residents, NYC city tax (3.078-3.876%). CDs are particularly punished in NY versus Treasuries, which are exempt from both state and city tax.
Almost always yes for NYC residents in any meaningful bracket. On September 25, 2026 the 1-year Treasury (4.50%) yielded as much as the best 1-year CDs before tax, and far more after NY State + NYC city tax. For non-NYC NY residents in low brackets, the gap is smaller, CDs can still make sense.
No. NY high earners face combined marginal rates of 47-54%. MYGA tax deferral is enormously valuable in this scenario, beating the top 5-year CD by roughly 85-100 bps/year after tax in our September 2026 worked example, more in the top brackets.
$250,000 per depositor per insured bank per ownership category, same federal limit as every state.
Yes, TEG Federal Credit Union, USALLIANCE Financial, FourLeaf FCU (formerly Bethpage) and Bridgewater Credit Union all post certificate rates; check each rate sheet, since standard terms can be far below their specials. NCUA insures up to $250K.
Both are accessible from anywhere, online banks aren't state-specific. But tax treatment depends on legal domicile. A NY-domiciled snowbird's CD interest is still subject to NY tax regardless of which bank issued it. Establish FL domicile first if tax avoidance is a goal.
This guide reflects publicly available rate, tax, and state-guaranty-fund information as of the date stated above. MYGA rates, CD rates, state tax brackets, and guaranty-fund limits change frequently, always confirm current values against the most recent carrier disclosure, bank rate sheet, and your state guaranty association's official website before purchasing. This article is general information for educational purposes; it is not a personalized recommendation, solicitation, or offer of any specific product, and is not tax advice. Hans Goldstein is an independent licensed insurance producer (NPN 20602398) appointed with multiple A-rated carriers; appointment status with any specific carrier discussed may vary. No compensation has been received from any carrier or bank in connection with publication of this review. Always read the actual contract and consult a licensed advisor and tax professional before purchasing any annuity or CD. AM Best ratings, state tax law, and IRC tax treatment are subject to change.
Hans Goldstein is an Enrolled Agent, admitted to practice before the Internal Revenue Service. Not affiliated with or endorsed by the IRS. General education, not tax or legal advice for your situation.