Finding the best savings account in Illinois means more than just comparing APYs. Illinois residents need to factor in state income tax on interest (Illinois has a flat 4.95% state income tax on savings account interest.), FDIC insurance, and account minimums. Here are the top picks for Illinois residents in 2026.
Advertiser Disclosure: WiseIQ earns a commission when you apply through links on this page. This does not influence our rankings. See how we rank →
🏛 Illinois Residents: Illinois's 4.95% flat income tax means a 4.50% APY savings account has an after-tax yield of approximately 4.28% for Illinois residents. Still excellent, but worth factoring in.
Are savings accounts taxed in Illinois?
Illinois has a flat 4.95% state income tax on savings account interest. Interest earned in savings accounts is considered ordinary income and must be reported on your federal and state tax returns.
What is the best savings account in Illinois right now?
As of March 2026, Marcus by Goldman Sachs (4.50% APY) and SoFi (4.60% APY with direct deposit) offer the best rates available to Illinois residents. Both are FDIC insured with no monthly fees.
Can I open an online savings account if I live in Illinois?
Yes. All major online savings accounts (Marcus, Ally, SoFi, Discover, American Express) are available to Illinois residents. Online accounts typically offer significantly higher APYs than local banks and credit unions.