BankingT-Bills·Apr 18, 2026
Treasury Bills vs. Bank CDs: The Tax Math Most People Miss
T-bills can quietly beat CDs after taxes — especially if you live in a high-tax state.
The hidden edge of Treasury bills
T-bills are short-term U.S. government debt. Their interest is fully exempt from state and local income taxes. CD interest is not.
Bottom line
If you live in a state with income tax and you're parking cash for 3–12 months, run the after-tax math before defaulting to a CD. T-bills frequently win.