Where you keep cash decides three things: what it earns, how quickly you can reach it, and who stands behind it if the institution fails. This hub covers checking, savings, CDs, money market funds, Treasury bills and I bonds, keeps the benchmark yields in one place and links every DigitalWealthSource guide and tool on the subject. No bank pays to be listed here.
Fed figures as of the September 16, 2026 decision and inflation through August 2026; bank and Treasury yields are dated where they appear.
National averages are pulled down by big banks that pay almost nothing on savings, so they describe what most money earns, not what it could earn. Rates at any single bank change without notice, which is why no bank-by-bank table appears on this site; how to find the best rate yourself walks through the official benchmarks to check instead.
Cash has three jobs, and each one points to a different account. Money for this month's bills needs instant access, so it belongs in checking, where the interest rate hardly matters. The emergency fund has to be reachable within a day or two and safe from market swings: an insured high-yield savings account or a government money market fund fits. Money with a known date, such as a tuition bill in March or a down payment next summer, can be committed until that date in CDs or Treasury bills, which usually pay a little more for the commitment.
Yields follow the Federal Reserve, at different speeds. Money market funds and Treasury bills reprice within weeks, because they hold short-term government debt that matures and rolls over constantly. Bank savings rates move only when a bank decides to move them. Between early 2022 and January 2024 the FDIC's national average savings rate rose from 0.06% to 0.47% while the Fed raised its target range by 5.25 percentage points. Customers who never compared rates kept most of that gap for their banks.
Protection depends on what you own. Bank deposits are insured by the FDIC and credit union deposits by the NCUA, up to $250,000 per depositor, per institution, for each ownership category, so a joint account and an individual account at the same bank are counted separately. A money market fund is an investment, not a deposit: SIPC covers a brokerage that fails, up to $500,000 including $250,000 in cash, but nothing insures a fund against losing value. Treasury bills and I bonds are direct obligations of the U.S. government. Apps that are not banks hold your money at partner banks and rely on "pass-through" insurance, which works only if the records of who owns what are right. When the middleman Synapse went bankrupt in 2024, customers of several fintech apps were locked out of their money for months.
Taxes and inflation decide the real winner. Interest from savings accounts, CDs and most money market funds is taxed by the IRS and by your state. Treasury interest is exempt from state and local income tax, so in a high-tax state a T-bill with a slightly lower yield can leave more in your pocket. I bond interest is state-tax-free too, and federal tax can wait until you cash the bond. After tax comes inflation: a 4.00% savings account taxed at 24% federal and 5% state keeps 2.84%, less than the 3.4% rise in consumer prices over the past year. The real interest rate guide shows how to run that check on your own account.
| Where the cash sits | Getting it out | What protects it | State income tax on the interest |
|---|---|---|---|
| Checking account | Instantly, by debit card or transfer | FDIC or NCUA, up to $250,000 per depositor, per institution, per ownership category | Yes |
| Savings or money market account | Usually one or two business days to move it to another bank | FDIC or NCUA, same limits | Yes |
| Certificate of deposit (CD) | At maturity; earlier only with a penalty of some months of interest | FDIC or NCUA, same limits | Yes |
| Money market fund | Sell on any business day | Not insured. SIPC covers a failed brokerage, not a drop in the fund's value | Often partly: the income from Treasury debt is exempt under most states' rules |
| Treasury bills | At maturity (4 to 52 weeks), or sold earlier through a brokerage | Backed by the U.S. government | No |
| I bonds | After 12 months; three months of interest lost if cashed before five years | Backed by the U.S. government | No |
California, Connecticut and New York exempt a money market fund's Treasury income only if at least half of the fund's assets are U.S. government obligations at the end of each quarter.
Each path is a short reading order. Start at step 1 and stop when your question is answered.
For savings still sitting at the posted rate of the bank you opened your first account with.
For cash you won't need for a few months and would rather keep away from state tax.
For anyone holding cash in an investment account between purchases or in retirement.
For working out what a rate decision changes in your own accounts.
If the account is at an FDIC-insured bank or an NCUA-insured credit union, deposits are covered up to $250,000 per depositor, per institution, for each ownership category, the same protection a big bank offers. You can confirm a bank on the FDIC's BankFind tool and a credit union on NCUA.gov. An app that is not itself a bank relies on pass-through coverage at a partner bank, which protects you only if the partner bank fails and the app's records show what you own.
Keep this month's bills in checking and an emergency fund of three to six months of essential expenses in insured savings or a government money market fund, or more if your income is irregular or one paycheck supports the household. Money you won't need for five years or more usually belongs in investments. The emergency fund guide sizes the fund from your own numbers.
It depends on your state tax rate and the two yields. Treasury bill interest is exempt from state and local income tax and savings interest is not. With no state income tax, a savings account paying slightly more than a T-bill wins; in a high-tax state, a T-bill paying slightly less can leave more after tax. The Cash Yield Showdown runs the comparison for your bracket and state.
Banks set deposit rates themselves and raise them slowly, especially on accounts whose owners rarely move money. Between early 2022 and January 2024 the FDIC's national average savings rate rose from 0.06% to 0.47% while the Fed raised its target range by 5.25 percentage points. Money market funds and Treasury bills reprice within weeks, so they are the faster way to capture a rate increase.
A money market account is a bank deposit: insured by the FDIC or NCUA, with a rate the bank sets. A money market fund is a mutual fund that holds short-term debt. It is not insured, though government money market funds hold Treasury and agency debt and aim to keep a stable $1 share price. Funds usually track market rates more closely; accounts carry deposit insurance.
Yes. Interest from savings accounts, CDs and money market accounts is ordinary income for federal tax and in most states, taxed in the year it is credited, and the bank sends Form 1099-INT once you earn $10 or more. Treasury bill interest is taxed federally but not by states or localities. I bond interest is state-tax-free as well, and federal tax on it can wait until you cash the bond.