Finding the best savings account in Pennsylvania means more than just comparing APYs. Pennsylvania residents need to factor in state income tax on interest (Pennsylvania has a flat 3.07% state income tax on savings account interest.), FDIC insurance, and account minimums. Here are the top picks for Pennsylvania residents in 2026.
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🏛 Pennsylvania Residents: Pennsylvania's low 3.07% income tax rate means savings account interest is taxed at a combined rate of approximately 25%–35% for most residents (federal + state). Still well worth using high-yield accounts.
Are savings accounts taxed in Pennsylvania?
Pennsylvania has a flat 3.07% 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 Pennsylvania 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 Pennsylvania residents. Both are FDIC insured with no monthly fees.
Can I open an online savings account if I live in Pennsylvania?
Yes. All major online savings accounts (Marcus, Ally, SoFi, Discover, American Express) are available to Pennsylvania residents. Online accounts typically offer significantly higher APYs than local banks and credit unions.