APY Calculator — New York 2026
Convert APR to APY for savings accounts and CDs as a New York resident. New York taxes interest income as ordinary income at up to 10.9%.
Quick Answer
A 4.5% APR compounded monthly has an effective APY of 4.5941%. Compounded daily: 4.6028% APY. As a New York resident, interest income is also subject to New York state income tax at up to 10.9% on top of federal tax. Always compare savings accounts using APY — it accounts for compounding.
What do you want to calculate?
Convert APR to APY
The stated interest rate before compounding
Results
APY (Effective Annual Yield)
4.5940%
vs 4.5% APR stated rate
Annual Earnings on $10,000
$459.40
Compounding Boost
+0.0940%
APY minus APR
A 4.5% APR compounded monthly has an effective APY of 4.5940%. The difference of 0.0940% is worth $9.40 per year on a $10,000 balance.
APR vs APY — Common Rate Comparisons
| APR | APY (Daily) | APY (Monthly) | APY (Quarterly) |
|---|---|---|---|
| 3.00% | 3.0453% | 3.0416% | 3.0339% |
| 3.50% | 3.5618% | 3.5567% | 3.5462% |
| 4.00% | 4.0808% | 4.0742% | 4.0604% |
| 4.50% | 4.6025% | 4.5940% | 4.5765% |
| 5.00% | 5.1267% | 5.1162% | 5.0945% |
| 5.50% | 5.6536% | 5.6408% | 5.6145% |
APY FAQs — New York
How is APY interest taxed in New York?
Interest earned on savings accounts and CDs (whether a high APY or low APY) is taxed as ordinary income. In New York, interest income is taxed at your state income tax rate of up to 10.9%. Combined with federal rates, New York residents in the top bracket may pay up to 48% total on savings interest.
What is the best APY savings account in New York?
APY rates are set by banks and credit unions nationally — they don't vary by state. As of 2026, the best APYs for New York residents are available at online banks and credit unions offering 4.0%–5.5% APY. You don't need to bank locally to access the best rates — any FDIC-insured online bank accessible from New York qualifies. Compare using APY, not APR, since APY accounts for compounding.
Is there a state tax on savings account interest in New York?
Yes — in New York, savings account and CD interest is taxed as ordinary state income at up to 10.9%. Your bank reports interest income over $10 on a 1099-INT to the IRS and New York state tax authority. There is no separate New York state form for interest income — it is reported on your regular New York state income tax return.
Should I use a savings account or CD for better APY in New York?
Both are taxed identically in New York — as ordinary income. The choice comes down to liquidity needs: savings accounts allow unlimited deposits and withdrawals (though federal rules allow up to 6 per month before fees), while CDs lock in your rate for a fixed term with an early withdrawal penalty. If rates are expected to fall, a CD locks in today's higher APY. If rates may rise, a savings account lets you benefit from increases. In New York, both options are taxed the same way at up to 10.9% state rate.
What is APY vs APR for a New York savings account?
APR is the stated interest rate before compounding; APY is the effective annual return after compounding. Federal law (Truth in Savings Act) requires all banks, including those serving New York residents, to disclose APY. Always compare using APY. A 4.5% APR compounded daily has a 4.603% APY — a 4.5% APR compounded monthly has a 4.594% APY. The difference is small but meaningful on large balances. $100,000 at 4.5% APR daily compounding earns $4,603/year vs $4,500 with annual compounding.