FFeddecision

CD vs. Treasury bills — which pays more?

Updated July 24, 2026 · refreshed automatically every 6 hours

Today a 1-year CD locks about 4.10%, while rolled 3-month Treasury bills pay 3.78% and float with the Fed. Under the market-implied rate path, floating bills average roughly 3.95% over the next year — so the CD lock comes out ahead if the market is right.

The decision is really about direction: locking wins if rates fall, floating wins if they rise. Right now the market is pricing rates higher.

T-bills add two practical edges: state-tax-free interest and liquidity every 13 weeks, versus early-withdrawal penalties on most CDs.

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More questions

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Feddecision translates market data into plain English. This page is generated automatically from today’s data and is general education — not personalized financial, investment, or tax advice.