Finding the best savings account in New York means more than just comparing APYs. New York residents need to factor in state income tax on interest (New York has state income tax (4%–10.9%) plus NYC income tax (3.08%–3.876% for NYC residents) on savings account interest.), FDIC insurance, and account minimums. Here are the top picks for New York residents in 2026.
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🏛 New York Residents: NYC residents pay some of the highest combined income taxes in the country. On $5,000 in savings interest, a NYC resident in the 32% federal bracket pays approximately $2,300 in combined taxes vs. $1,600 for a Texas resident. Tax-advantaged accounts should be maxed first.
Are savings accounts taxed in New York?
New York has state income tax (4%–10.9%) plus NYC income tax (3.08%–3.876% for NYC residents) 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 New York 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 New York residents. Both are FDIC insured with no monthly fees.
Can I open an online savings account if I live in New York?
Yes. All major online savings accounts (Marcus, Ally, SoFi, Discover, American Express) are available to New York residents. Online accounts typically offer significantly higher APYs than local banks and credit unions.