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    CDs vs Treasuries vs HYSA

    Safe places to earn 4%+ on cash.

    High-Yield Savings (HYSA)

    • Most flexible. Withdraw anytime.
    • Currently 4-5% APY.
    • Marcus by Goldman Sachs, Ally, SoFi, Discover — all good.
    • FDIC-insured up to $250K.
    • Best for emergency fund + short-term cash.
    • Rate changes with Fed decisions.

    CDs (Certificates of Deposit)

    • Lock money for 3 months to 5 years.
    • Locked rate — won't drop.
    • Currently 4-5% for 1-yr CDs.
    • Penalty for early withdrawal (3-12 months interest).
    • FDIC-insured up to $250K.
    • Brokered CDs (via Fidelity/Schwab) — no penalty if sold on secondary market.
    • Senior favorite for predictable income.

    Treasuries

    • Backed by US government — safest.
    • T-Bills — 4 weeks to 1 year. 4-5%.
    • T-Notes — 2-10 years. 4-5%.
    • I-Bonds — 30 yrs, inflation-protected. ~3-4% currently.
    • TIPS — Treasury Inflation Protected Securities.
    • NO state income tax (big benefit in CA, NY).
    • Buy at TreasuryDirect.gov or via brokerage.

    Money Market Funds

    • At brokerages — Fidelity SPAXX, Vanguard VMFXX.
    • Currently 4-5% APY.
    • Withdraw anytime.
    • NOT FDIC-insured (rare to lose money but possible).
    • Government MMFs safest.
    • Convenient at brokerage.

    CD Ladder

    • Split money across 1-yr, 2-yr, 3-yr, 4-yr, 5-yr CDs.
    • Each year, one matures — reinvest at then-current rates.
    • Liquidity + locked rates.
    • Most rate-environment-proof strategy.
    • Senior favorite for predictable cash flow.

    Tax tip

    Treasuries = no state income tax (big in high-tax states like CA, NY, NJ). CDs/HYSA = state + federal tax. In Roth IRA = tax-free everywhere. In Traditional IRA = tax-deferred. For taxable accounts, Treasuries often better than CDs after tax for high-tax-state residents.