📊 After Tax T Bill vs. CD Calculator

Are you deciding where to park your cash with interest rates at 20-year highs? As Colin Exelby puts it, all three of these options are generally very low risk ways to preserve assets. But they have key differences in liquidity and tax treatment.

This calculator helps you compare high-yield savings, bank CDs, and Treasury bonds to find your true after-tax return and decide if the extra effort of buying Treasuries is worth it.

As Colin Exelby notes, high yield savings accounts FDIC Insurance up to $250,000 per individual per bank or $500,000 for a joint couple. Rates can fluctuate at a moment's notice, whereas with FDIC insured CDs, same insurance benefits, but the major difference is the interest rate is locked in and will not change for the term.

Enter the current interest rates and your investment amount below to see how they stack up.

This is the most critical part of the comparison. For savings and CDs, the interest received is fully taxable at the federal, the state, and the local level in the year you receive it. For Treasuries, the big difference here is that the interest is only taxed at the federal level. State and local taxes are not paid on the interest on Treasury bonds and bills.

Because of this tax break, often treasury bonds are better than FDIC insured CDs for those people with higher asset levels, higher incomes, or those that live in higher tax States.

Based on content by Colin Exelby on See the Forest Through the Trees (YouTube).

Original: High Yield Savings vs. Bank CDs vs. Treasury Bonds: Which One is Better for You?