Best High-Yield Savings Options in the US: HYSAs, CDs, T-Bills, and Money Market Accounts
With rates elevated in 2025, American savers have more options than in years. Here is how to compare high-yield savings accounts, CDs, Treasury bills, and money market accounts — and how to choose the right mix.
For years, American savers kept money in traditional savings accounts paying 0.01–0.05% APY. That era ended when the Federal Reserve began its most aggressive rate-hiking cycle since the 1980s. Today, with rates elevated and online competition intense, savers can earn 4–5% APY on cash with no risk to principal.
This guide covers every category of high-yield savings available to US residents, how to compare them, and how to build a layered savings strategy.
High-Yield Savings Accounts (HYSAs)
Online HYSAs consistently pay 10–50 times the national average savings rate. The best offerings in 2025 range from 4.5% to 5.25% APY, with no minimum balance requirements and no monthly fees.
Why online banks outpay traditional banks: Online banks have no physical branches to maintain, enabling them to return more interest to depositors.
FDIC insurance: All deposits at FDIC-member institutions are insured up to $250,000 per depositor, per account category. Joint accounts qualify for $500,000 coverage.
Top HYSA providers to compare:
- Ally Bank, Marcus by Goldman Sachs, Discover Online Savings
- SoFi (bundles checking and savings; may require direct deposit for top rate)
- Synchrony, American Express High Yield Savings
How to choose: Compare current APY, minimum balance requirements, FDIC membership, mobile app quality, and whether the rate is promotional or ongoing. Promotional "teaser" rates often reset lower after 3–6 months.
Certificates of Deposit (CDs)
CDs lock your money for a fixed term in exchange for a guaranteed rate. A 1-year CD at 5.1% APY locks in that rate regardless of what the Fed does during the year — useful when rates are high and expected to fall.
| Term | Typical APY range (2025) | Liquidity |
|---|---|---|
| 3 months | 4.5%–5.0% | Penalty if withdrawn early |
| 6 months | 4.8%–5.2% | Penalty if withdrawn early |
| 12 months | 4.5%–5.1% | Penalty if withdrawn early |
| 24 months | 4.0%–4.8% | Penalty if withdrawn early |
| 60 months | 3.8%–4.5% | Penalty if withdrawn early |
CD laddering: Build a portfolio of CDs with staggered maturity dates. For example, $20,000 split across five $4,000 CDs maturing every 3 months — one matures each quarter, providing liquidity while capturing higher term rates.
No-penalty CDs: Some banks offer CDs with no early withdrawal penalty, typically with rates slightly below standard CDs. Marcus by Goldman Sachs and Ally offer no-penalty CDs. These provide more flexibility than standard CDs with still-competitive rates.
Early withdrawal penalties are typically 60–180 days of interest depending on term length — factor this in if there is any chance you may need the money.
US Treasury Bills
Treasury bills (T-Bills) are short-term US government debt securities with maturities of 4, 8, 13, 17, 26, and 52 weeks. In 2025, 13-week T-Bills have yielded approximately 5.1–5.3%.
State income tax exemption: Treasury interest is exempt from state and local income taxes. For residents of high-tax states (California: 13.3% top rate; New York: 10.9%), this makes T-Bills meaningfully more valuable than the same rate in a HYSA.
Example: A T-Bill at 5.1% for a California resident in the 9.3% state tax bracket is equivalent to approximately 5.57% from a fully taxable HYSA.
How to buy: Directly via TreasuryDirect.gov (no fees) or through a brokerage (Fidelity, Schwab, Vanguard) where T-Bills trade in the secondary market. Brokerage accounts offer easier liquidity.
Money market funds investing in T-Bills (such as Fidelity Government Money Market Fund SPAXX or Vanguard Federal Money Market) offer daily liquidity with similar yields and the same state tax treatment.
I Bonds
Series I Savings Bonds are inflation-linked bonds issued by the US Treasury. The composite rate adjusts every May and November based on CPI-U.
Key features:
- Annual purchase limit: $10,000 per person via TreasuryDirect ($5,000 additional via tax refund)
- Must hold for at least 12 months
- Redemption within 5 years forfeits 3 months of interest
- Federal tax can be deferred until redemption (or used for qualified education expenses tax-free)
- Exempt from state and local income tax
I Bonds are best suited as a long-term cash position rather than an emergency fund, given the 12-month lock-up.
Money Market Accounts (MMAs)
Bank MMAs function like savings accounts with some checking features (limited debit card / check access). Online MMAs currently yield 4.5–5.0% APY with FDIC insurance.
Not to be confused with money market funds — which are investment products (not bank accounts) holding short-term government or corporate debt. Money market funds are not FDIC-insured but carry very low risk. Government money market funds (like SPAXX or VMFXX) hold primarily T-Bills and are considered extremely safe.
Comparing the Options
| Product | Current yield | Liquidity | FDIC/government | State tax |
|---|---|---|---|---|
| Online HYSA | 4.5%–5.25% | Immediate | FDIC-insured | Taxable |
| CDs (12-month) | 4.5%–5.1% | Penalty for early withdrawal | FDIC-insured | Taxable |
| T-Bills (13-week) | 5.1%–5.3% | At maturity (or secondary market) | US government backed | Exempt |
| I Bonds | CPI-linked (variable) | None for 12 months | US government backed | Exempt |
| Money market fund | 4.8%–5.2% | Same day | Not FDIC (very low risk) | Exempt (govt funds) |
Building a Layered Savings Strategy
Not all savings serve the same purpose. A well-structured cash position uses different products for different purposes.
Layer 1 — Emergency fund (1–3 months): Online HYSA. Immediate access; FDIC-insured. Keep this at a separate bank from your checking to reduce temptation.
Layer 2 — Semi-liquid reserve (months 4–6 of emergency fund): No-penalty CD or money market fund. Slightly better yield; still accessible within a few days if needed.
Layer 3 — Known future expenses (6–18 months out): CD ladder matched to when you will need the money. Wedding, home purchase, car, etc.
Layer 4 — Long-term cash / inflation hedge: I Bonds (up to $10,000/year). Buy annually and hold for 5+ years.
Layer 5 — Taxable brokerage overflow (beyond 18 months): T-Bills or money market fund inside a brokerage account. Earn market-rate interest while keeping the money invested.
What to Do Now
If your savings are still in a 0.5% traditional savings account, moving to a HYSA is the single most impactful no-risk financial move available today. On $25,000 of savings, the difference between 0.5% and 5.0% is $1,125/year in additional interest — with zero additional risk.
Compare current rates at NerdWallet or Bankrate, open an online HYSA in 10–15 minutes, and set up an automatic transfer from checking. The compounding benefit begins immediately.
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