High-yield savings, CDs and Treasury bills

HIGH-YIELD SAVINGS

1. A savings account that pays more

• Usually a higher rate than a basic savings accountRates change over time
• You can take money out when you need itGreat for an emergency fund
• FDIC insured at insured banksUp to $250,000 per depositor, per bank, per category

Source: FDIC.

CDs

2. Certificates of deposit

• You lock money in for a set timeLike 6 months or a year
• The rate is set when you open itIt won't drop on you
• Early withdrawal usually costs a penaltyOnly use money you won't need

TREASURY BILLS

3. Short-term loans to the US government

• Terms from 4 to 52 weeksYou get the full value at maturity
• Interest is federally taxedBut exempt from state and local tax
• Buy them in TreasuryDirectOr through a bank or broker

Source: TreasuryDirect.

HOW THEY COMPARE

4. Pick by when you need the money

• Need it anytime?High-yield savings
• Won't touch it for months?A CD or a T-bill
• Live in a high-tax state?T-bills skip state tax

QUESTIONS TO ASK

5. Before you move your money

• Is my emergency fund covered first?
• When will I need this money?
• Is my bank FDIC insured?

Educational only, not financial advice. Talk to a fee-only fiduciary or CPA about your situation.