Compare Treasury Bills vs Savings
Compare after-tax earnings from short-term Treasury bills against a savings account using live Treasury bill data and your own tax assumptions.
This tool helps answer a practical question: should this portion of your cash stay in savings, or could a Treasury bill be a better fit for the same time period?
The best answer depends on yield, taxes, and how soon you may need the money.
Inputs
How to use this tool
- Enter the amount of cash you want to compare.
- Set your savings APY and tax rates.
- Review which Treasury term creates the best after-tax result.
- Use the chart and table to compare all available bill terms.
After-Tax Earnings by Treasury Term
This chart compares estimated after-tax earnings from Treasury bills and savings for the same cash amount and time period.
How to interpret the results
This tool is designed to compare cash outcomes over the same general time horizon. A Treasury bill may look better after tax, especially in higher-tax states, because Treasury interest is generally exempt from state and local income tax.
But higher earnings do not automatically make a Treasury bill the better choice. Savings accounts still offer better immediate access, so liquidity matters just as much as yield.
Email these comparison results to yourself
Save this Treasury vs savings comparison and get occasional Treasury and cash-yield updates.
Comparison Table
| Term | Treasury Yield | Days | Treasury Gross | Treasury After-Tax | Savings Gross | Savings After-Tax | Advantage |
|---|
Looking beyond savings accounts? Compare Treasuries with broader alternatives →
When Treasury bills may be better
- You know you will not need the money until maturity.
- You want a defined return over a fixed period.
- You want to compare after-tax cash efficiency.
- You live in a higher-tax state where Treasury tax treatment matters more.
- You are organizing short-term cash by timeline rather than leaving everything in savings.
When savings may still be better
- You need immediate access to the money.
- Your timeline is uncertain.
- You do not want to manage maturity dates.
- You value flexibility more than a potentially better locked-in yield.
- You are keeping core emergency cash available for unexpected needs.
Frequently asked questions
Does this comparison use live Treasury bill data?
Yes. Treasury bill terms and yields are pulled from your live Treasury bill dataset.
Why can Treasury bills win even when the yield difference looks small?
Taxes matter. Treasury interest is generally exempt from state and local income taxes, which can improve after-tax results.
Does a Treasury bill always beat a savings account?
No. It depends on the current Treasury yield, the savings APY, your tax rates, and whether you can leave the money untouched until maturity.
Is the better after-tax result always the better choice?
Not necessarily. A savings account may still be the better fit if access and flexibility matter more than a higher projected return.