🏦 Where should I park my cash?

Parking $20,000 in a checking account earns nothing, but moving it to a safe, yield-bearing asset generates hundreds of dollars a year. This calculator compares one year of after-tax interest across three popular cash options to find your absolute highest return without market risk.

TreasuryDirect sells T-bills in terms ranging from 4 to 52 weeks at a discount to face value, with a minimum purchase of $100. Federal tax applies to the interest, but Treasuries are completely exempt from state and local income taxes.

This tax shield makes T-bills highly competitive for savers in high-tax states. Bank products lack this exemption, meaning their earnings face both federal and state taxes.

Keep cash in an HYSA for total flexibility, lock in a CD for a fixed term, or buy T-bills when state income taxes drag down bank returns. All three are extremely safe, backed by FDIC insurance or the U.S. government.

To keep things simple, this model looks at a single year at today's rates. It ignores rate changes at CD maturity or T-bill rollover risk, and excludes CDs entirely if you need access to the money.

For further related reading, check out:

• Treasury Bills
• Deposit Insurance | FDIC.gov