Best CD Rates in New York (2026) — Top APYs After NY+NYC Tax
TL;DR: Top CD APYs available to NY residents in June 2026 are 4.50-4.85% on 1-yr terms, 4.30-4.60% on 5-yr terms. 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.
Best New York CD rates (June 2026)
| Bank/CU | Term | APY | Min | Type |
|---|---|---|---|---|
| Marcus by Goldman Sachs | 1 yr | 4.80% | $500 | Online bank |
| Synchrony Bank | 1 yr | 4.85% | $0 | Online bank |
| Ally Bank | 1 yr | 4.70% | $0 | Online bank |
| TEG Federal Credit Union | 1 yr | 4.75% | $1,000 | NY credit union |
| Bethpage Federal Credit Union | 2 yr | 4.55% | $50 | NY credit union |
| USALLIANCE Financial | 2 yr | 4.60% | $500 | NY credit union |
| Marcus | 3 yr | 4.55% | $500 | Online bank |
| Ally Bank | 5 yr | 4.50% | $0 | Online bank |
New York CD tax problem
CD interest in NY is taxed at:
- Federal ordinary income (10-37% marginal)
- NY State income tax (4-10.9% marginal)
- NYC city tax (3.078-3.876% marginal, NYC residents only)
- Yonkers surcharge (~1.6% effective, Yonkers residents only)
- NIIT 3.8% if AGI > $200K single / $250K joint
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 4.85% CD nets only ~2.59% after-tax — barely outpacing inflation.
Why Treasuries crush CDs for NY residents
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 (Synchrony 4.85%) | 4.85% | No | 2.59% |
| 1-yr Treasury (4.30%) | 4.30% | Yes (both) | 2.92% |
The 4.30% Treasury beats the 4.85% CD by 33 bps after NYC tax — despite the CD's higher gross rate.
Worked example: NY MYGA vs CD vs Treasury
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 (Marcus 4.50%) | 4.50% | $280,090 | 2.30% |
| 5-yr Treasury (4.30%) | 4.30% | $286,815 | 2.78% |
| 5-yr MYGA (Athene NY 5.50%) | 5.50% | $302,468 | 3.88% |
For NYC residents, MYGA wins by $22,378 over CD and $15,653 over Treasury on $250K over 5 years.
When NY CDs still make sense
- Inside an IRA: State + city tax don't apply to IRA-held interest. CDs vs MYGAs becomes a gross-rate question; MYGAs still win on rate but the gap is smaller.
- Lowest NY brackets: Residents in the 4-5.5% NY State bracket (income under $80K) feel less of the tax drag.
- Non-NYC, non-Yonkers residents: Without city tax, a 4.85% CD nets ~2.85% after-tax for a 24% federal + 6% NY resident — closer to Treasury equivalent.
- No-penalty CDs for emergency reserve: Ally no-penalty CD 4.10% — full liquidity without surrender risk.
NY credit unions
- Bethpage Federal Credit Union — Long Island, statewide membership, competitive CDs.
- TEG Federal Credit Union — Hudson Valley.
- USALLIANCE Financial — Westchester-based.
- Bridgewater Credit Union — NY/MA service area.
Related NY guides
- NY high-earner CD vs municipal bond
- Best NY MYGA rates
- NY Treasury vs MYGA after-tax
- NY guaranty fund ($500K)
New York CD vs MYGA — second opinion before you lock in
Talk to a licensed independent expert. Hans.
Most New York savers shopping CDs in 2026 are also a candidate for a MYGA — same lock-up logic, higher rate, deferred tax. A 5-minute call clarifies which fits your bracket and liquidity needs.
Drop your info — get a side-by-side: best New York CD rates vs current MYGA rates, after-New York-tax, with the math written out.
Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple A-rated carriers
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Frequently asked questions
What is the best CD rate in New York?
As of mid-2026, top 1-yr CDs available to NY residents pay 4.50-4.85% APY from online banks (Marcus, Ally, Synchrony, Capital One) and NY-area credit unions (TEG FCU, USALLIANCE, Bethpage FCU).
Does NY tax CD interest?
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.
Should NY residents buy Treasuries instead of CDs?
Almost always yes for NYC residents in any meaningful bracket. A 4.30% Treasury beats a 4.85% CD after combined NY State + NYC city tax for most NYC residents. For non-NYC NY residents in low brackets, the gap is smaller — CDs can still make sense.
Are NY CDs better than MYGAs for high earners?
No. NY high earners face combined marginal rates of 47-54%. MYGA tax deferral is enormously valuable in this scenario — beating CDs by 150-200 bps/year after tax.
What's the FDIC limit on NY bank CDs?
$250,000 per depositor per insured bank per ownership category — same federal limit as every state.
Are credit union CDs in NY competitive?
Yes — TEG Federal Credit Union, USALLIANCE Financial, Bethpage FCU, and Bridgewater Credit Union offer competitive APYs. NCUA insures up to $250K.
Should a NY snowbird buy CDs in NY or FL?
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.
Disclosure
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.