HYSA vs CD vs Treasury Bills

by Anonymous

High-yield savings accounts, certificates of deposit, and Treasury bills all offer low-risk returns on cash, but they differ in liquidity, rate guarantees, and tax treatment. HYSAs offer flexibility with variable rates, CDs lock in rates for fixed terms, and T-bills provide state tax exemption. Your choice depends on when you need the money and whether rate certainty matters more than access.

High-Yield Savings Account

4.00–4.50% APY
current yield
Variable
rate type
Instant withdrawal
liquidity
FDIC up to $250K
fdic / government backed
Federal + state income tax
tax treatment
$0
minimum investment

Certificate of Deposit

4.00–5.00% APY
current yield
Fixed for term
rate type
Penalty for early withdrawal
liquidity
FDIC up to $250K
fdic / government backed
Federal + state income tax
tax treatment
$0–$1,000
minimum investment

Treasury Bills

4.20–4.80%
current yield
Fixed at auction
rate type
Sell on secondary market
liquidity
Full faith of US government
fdic / government backed
Federal only (state exempt)
tax treatment
$100 (TreasuryDirect)
minimum investment

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