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Treasury bills vs CDs is a closer fight than it used to be. The Treasury sold 52-week bills at a 4.290% discount rate in the auctions held October 26-29, 2026. On November 2, Marcus by Goldman Sachs was paying 4.40% APY on a 12-month CD, while the FDIC’s national average for that term was 1.76%. So which one is better? It depends on your taxes, how soon you might need the money, and whether you’re comparing the right numbers. This guide lines up T-bills, CDs and high-yield savings, runs the math on $10,000, and says when each one wins.
Treasury bills vs CDs vs savings: today’s rates
Here’s where each stood when we checked. The T-bill figures come from the Treasury’s auction results for October 26-29. The bank rates come from the banks’ own pages on November 2.
| Option | Term | Rate as quoted | What the rate means |
|---|---|---|---|
| 4-week T-bill | 4 weeks | 3.910% | Discount rate |
| 13-week T-bill | 13 weeks | 4.050% | Discount rate |
| 26-week T-bill | 26 weeks | 4.210% | Discount rate |
| 52-week T-bill | 52 weeks | 4.290% | Discount rate |
| Marcus CD | 12 months | 4.40% | APY |
| Synchrony CD | 12 months | 4.30% | APY |
| Synchrony savings | None | 3.75% | APY, variable |
| FDIC national average, savings | None | 0.38% | Average rate |
Don’t read that table across. A discount rate isn’t an APY, so 4.290% on a bill and 4.40% on a CD aren’t a like-for-like pair. The only fair comparison is dollars earned, and that’s where we’re headed. For the FDIC averages behind the last row, see the FDIC’s national rates page.
How Treasury bills vs CDs pay you
A CD works one way: you deposit the full amount and the bank credits interest, quoted as an APY. A bill works another. It doesn’t send you interest checks. You buy it below face value, and the Treasury pays face value at maturity. According to TreasuryDirect, the interest is the difference between what you paid and the face value.
Take the 52-week bill issued October 29, 2026, which matures October 28, 2027. It sold at a price of 95.662333 per $100 of face value. So $10,000 of face value cost $9,566.23 and pays back $10,000, a gain of $433.77. Flip it around: $10,000 spent would buy about $10,453.44 of face value and earn roughly $453.44, or 4.53% over the 364 days. That’s why the 4.290% headline understates what the bill actually returns on the money you put in.
The rules are loose. TreasuryDirect says you can start with $100 and buy in $100 steps, with a $10 million cap on a non-competitive bid. Purchases are electronic only. The 52-week bill is auctioned every four weeks, and the shorter bills come around weekly. You can hold a bill to maturity or sell it earlier, and TreasuryDirect offers a reinvest option.
Treasury bills vs CDs on taxes
This is the part that surprises people. TreasuryDirect says T-bill interest is subject to federal income tax but not to state or local income tax. CD interest is taxable at every level. In a state with an income tax, that can reorder the Treasury bills vs CDs rankings.
Here’s one year on $10,000, using a made-up but plausible 24% federal rate and 5% state rate. We’re assuming the bill earns the roughly $453.44 above, the CD earns 4.40% APY, and the savings account holds 3.75% all year.
| Option | Interest before tax | Tax at 24% federal, 5% state | Kept after tax |
|---|---|---|---|
| 52-week T-bill | $453.44 | $108.83 (federal only) | $344.61 |
| 12-month CD at 4.40% | $440.00 | $127.60 | $312.40 |
| Savings at 3.75% | $375.00 | $108.75 | $266.25 |
The bill wins by about $32 over the CD, and most of that margin is the missing state tax. Live somewhere with no state income tax and the gap shrinks to roughly $10: the CD would keep $334.40 after a 24% federal bite against the bill’s $344.61. Your rates will differ, so run your own numbers before you decide.
Treasury bills vs CDs on safety and access
A CD or savings account at an FDIC-insured bank is covered up to $250,000 per depositor, per bank, per ownership category, the FDIC says. Treasury bills aren’t bank deposits. They’re issued by the U.S. Treasury, so that coverage doesn’t apply to them. If you’re holding a lot of cash, our guide to the FDIC insurance limit explains how the categories work.
Getting out early is where the three differ most. Break a CD and you pay a penalty. Synchrony, for example, charges 90 days of simple interest on terms of 12 months or less, which is about $53.01 on a $5,000, 12-month CD at 4.30%. A bill can be sold before it matures, but you’ll get the market price that day, which can be higher or lower than the neat math above suggests. A savings account has no clock at all, though its rate can change any day. Synchrony’s pays 3.75% now, and some banks attach conditions: Happen’s 4.20% drops to 3.00% without $250 in deposits.
What the yield curve says
The Treasury’s par yield curve for October 30 showed 4.06% for one month, 4.16% for three months, 4.25% for six months, 4.36% for one year and 4.56% for two years, according to the Treasury’s daily rates page. Longer money earns more in Treasuries right now, unlike the flat 4.40% Marcus pays from 12 to 24 months.
In any Treasury bills vs CDs comparison, remember that both products take their cue from the same backdrop. The Federal Reserve held its target range at 3.75% to 4.00% on October 28, and our coverage of the Fed hold and what it means for savings breaks down the fallout. For a day-by-day view, see our Treasury yields report.
Treasury bills vs CDs: which one fits your money
Pick a T-bill if you pay state income tax, can leave the money alone for the bill’s term, and don’t mind doing the purchase online. Pick a CD if you want a bank to handle everything, like the FDIC coverage, and are fine with a penalty if plans change. See our best CD rates guide for where the top rates sit. Pick savings if the money might be needed next month. Our best high-yield savings accounts guide covers the current leaders.
Many people split the difference. An emergency fund goes in savings, money for a known expense a year out goes in a bill or CD, and the amount you won’t touch for a while gets laddered. Whatever you choose, compare the after-tax dollars, not the quoted rates.
Editor’s Take
In the Treasury bills vs CDs matchup, there’s no universal winner, which is why the rate table alone is misleading. If you pay state income tax and can commit for a year, bills deserve a hard look. If you want something simple, insured and handled by a bank, a 4.40% CD is hard to fault. And if you might need the cash tomorrow, savings is the only one of the three with no clock. Let the dollar math decide, not the headline rate.
This is general information, not financial advice. Rates and auction results change often, so confirm current figures with the Treasury and the bank before you buy.
