According to the FDIC at the time of writing (June 9, 2019), savings, interest checking, and money market accounts are not doing much for your money, at just 0.10%, 0.06%, and 0.19% respectively. In fact, CDs with 60 month maturity are only yielding 1.23%. There is a better place for your hard earned money!
At the time of writing, 4 week Treasury Bills are yielding 2.3%!
What about FDIC insurance?
Treasury Bills are not FDIC insured, however they are backed by the full faith and credit of the U.S. Government.
Another factor to consider is that Treasury Bills are exempt from State income tax! Are you sold yet? Could this get any better?
The best part is, you don’t have to sign up for (yet another) bank account. Many brokers offer Treasury Bills at no cost, so you can purchase these within your existing broker account.
If you’re saving cash for a new car or house and you can weather a 4 week maturity period (this does not include your emergency fund), this is a great opportunity to boost the interest earnings on your savings. If your money is not working for you, it’s working for someone else!