Top HYSAs
3.00-4.00%
T-Bills vs HYSA (2026): State Tax Decides Most Cases
TL;DR: In late September 2026 leading HYSAs paid 3.00-4.00% APY (bank sites, September 24) with instant liquidity and FDIC. T-bills yielded 3.97-4.48% (U.S. Treasury, September 25) and are state-tax exempt. T-bills now match or beat most HYSAs before tax, and for high-tax-state residents over $25K they usually win clearly after tax. For sub-$25K, no-tax-state residents, or anyone valuing instant ATM access, the HYSA wins.
HYSA and T-bill yields, checked September 2026
| Instrument | Yield / rate | Source, as of |
|---|---|---|
| Leading online high-yield savings | 3.00-4.00% APY | Bank websites (Live Oak, Sallie Mae, Marcus, Synchrony, Capital One, Ally), 9/24/2026 |
| 4-week T-bill | 3.97% | U.S. Treasury daily bill rates (coupon equivalent), 9/25/2026 |
| 13-week T-bill | 4.18% | U.S. Treasury daily bill rates (coupon equivalent), 9/25/2026 |
| 26-week T-bill | 4.36% | U.S. Treasury daily bill rates (coupon equivalent), 9/25/2026 |
| 52-week T-bill | 4.48% | U.S. Treasury daily bill rates (coupon equivalent), 9/25/2026 |
| Treasury/government money funds | 3.45-3.76% (7-day) | Fund company sites (Fidelity, Schwab, Vanguard), 7-day yields, 9/23/2026 |
| A-rated 5-year MYGA (top of market) | 5.50-6.05% | public carrier rate sheets, 10/14/2026 |
| Fed funds target range | 3.75-4.00% | FOMC statement, raised 0.25 point on 9/16/2026 |
HYSA examples from rates.json (9/24/2026): Live Oak 4.00% (as of 9/8), Sallie Mae 3.85%, Marcus 3.50%, Synchrony 3.30%, Capital One 360 3.10%, Ally 3.00%. Bill yields are coupon-equivalent. Rates change weekly. Other rate figures further down this page are as of June 27, 2026.
Treasury note vs MYGA, after tax
What $100,000 earns in 5 years: treasury note vs MYGA, after tax
Rates used: Treasury note 5.06%, the 5-year Treasury par yield (U.S. Treasury, October 2, 2026); Treasury interest is free of state tax; change it to the rate you are offered. MYGA 5.95%, the best A-rated rate we track as of October 13, 2026: Delaware Life Pinnacle Plus 5-year (AM Best A-, negative outlook, 7/31/2026), $100,000 and up, effective October 6, 2026 (Delaware Life rate sheet).
| Treasury note, interest taxed every year | $121,354 |
|---|---|
| MYGA, tax-deferred, before tax | $133,507 |
| MYGA after paying tax on all the interest at withdrawal | $126,136 |
| Tax deferral alone adds about | $674 |
| MYGA ahead of the treasury note, after tax | $4,781 |
Assumes 22% federal and 0% state income tax, no withdrawals, rates held for the whole term. Treasury interest is free of state tax, so state tax applies to the MYGA only. MYGA interest is taxed as ordinary income when you withdraw it, not as capital gains. Gains taken before age 59 1/2 can owe a 10% IRS penalty, and cashing out early can cost a surrender charge. In an IRA both grow tax-deferred, so the edge there is the rate alone. A MYGA is backed by the issuing insurer's claims-paying ability and your state's guaranty association up to its limits, not the FDIC. General education, not tax, legal or financial advice.
The headline gap has closed, the tax gap hasn't
On September 24, 2026, leading online savings accounts paid 3.00-4.00% APY (for example Live Oak 4.00%, Sallie Mae 3.85%, Marcus 3.50%, Ally 3.00%), while 4- to 26-week T-bills yielded 3.97-4.36% on September 25. Only the very top HYSAs match the bills on headline. Apply state and local tax, and for residents of any state with income tax above ~6%, the T-bill pulls ahead on an after-tax basis.
Yields: September 24-25, 2026
4-week T-bill
3.97%
13-week T-bill
4.18%
26-week T-bill
4.36%
52-week T-bill
4.48%
Rate alert
Rates expire like milk.
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Side by side
| Dimension | HYSA | T-Bills |
|---|---|---|
| Yield (Sept 24-25, 2026) | 3.00-4.00% APY | 3.97-4.48% |
| Federal tax | Taxable as ordinary income | Taxable as ordinary income |
| State tax | Fully taxable | Exempt (31 USC 3124) |
| Default protection | FDIC to $250K per depositor | U.S. Treasury: unlimited |
| Liquidity | Same day (ACH usually next-day) | T+1 settlement on secondary market |
| Rate stability | Variable: bank can change anytime | Fixed for term once purchased |
| Minimum balance | Usually $0 | $100 |
| Withdrawal limits | Regulation D (now suspended): generally none | None (sell to redeem) |
| Best for | Sub-$25K, instant-access, no-tax states | Six-figure cash, high-tax states |
When the HYSA wins
- You live in a no-state-tax state. No exemption to capture, take the higher headline yield.
- Balance under $25K. Even at California 10.3% state tax, the savings on $25K at 4.15% is $107/year. Not nothing, but if HYSA simplicity matters more, it's a tie.
- Instant ATM access matters. HYSAs allow same-day ACH; brokerage settlement on T-bill sales is T+1.
- You want one account that does cash management AND savings. HYSAs often link to bill pay, debit cards, and ACH. T-bills sit inside a brokerage that's not optimized for transactional banking.
- You're disciplined about rate-shopping. HYSAs reprice constantly. If you actively chase the top 3-month rate, you can stay ahead of T-bills by 30-50 bps.
When the T-bill wins
- You live in California, New York, New Jersey, Oregon, Hawaii, Minnesota, or any state with income tax above 6%. The state-tax exemption is worth 30-70 bps on after-tax yield.
- Balance over $100K. FDIC caps at $250K per depositor per bank. If you have $500K, you need 2 banks. T-bills have unlimited backing in one account.
- You want rate certainty for 4-52 weeks. HYSA rates float. Buy a 52-week T-bill (4.48% on September 25, 2026) and you own that yield for a year. The HYSA can reprice any day.
- You hold business or trust cash. FDIC limits still apply per ownership category; Treasury direct ownership simplifies above-cap holdings.
- You expect rates to fall. Locking 52-week paper protects you from HYSA cuts. (The Fed actually raised its target range to 3.75-4.00% on September 16, 2026, so this is a bet, not a given.)
Worked example: $100,000 emergency fund over 1 year
California resident, top federal + 10.3% state
HYSA at 4.45% (assume flat). Pre-tax: $4,450. Federal: $1,647. State: $458. After-tax: $2,345.
52-week T-bill at 4.05%. Pre-tax: $4,050. Federal: $1,499. State $0. After-tax: $2,551.
T-bill wins by $206. The state-tax exemption flips a 40-bp headline gap into a $206/year edge.
Florida resident, top federal, no state tax
HYSA at 4.45%. After-tax: $2,804.
52-week T-bill at 4.05%. After-tax: $2,552.
HYSA wins by $252. No state-tax leverage. Take the higher yield.
Texas resident with $500K cash
HYSA strategy: Split across two banks at an assumed 4.45% blended (illustration; top HYSAs paid 3.00-4.00% in September 2026). After federal tax: $14,018.
T-bill strategy: 52-week T-bills at 4.05%. After federal tax: $12,758.
HYSA wins by $1,260, and the 2-bank split is FDIC-covered. T-bill strategy wins on simplicity (one account, no FDIC management) but loses on after-tax dollars in no-state-tax states.
The MYGA contrast (for cash you'll leave longer)
If you're parking emergency cash, both HYSAs and T-bills are appropriate. If you're parking "future" cash you can confidently leave for 3-10 years, neither one is. A-rated 5-year MYGAs paid about 5.50-6.05% on October 14, 2026 (public carrier rate sheets), roughly 130-200 basis points more than either of these instruments, and the interest is tax-deferred. The trade-off is liquidity. MYGAs allow 10%/yr free withdrawal, beyond which surrender charges apply. For the right money, that lockup is the price you pay for a meaningful yield premium and tax deferral.
FAQ
Why don't more savers use T-bills instead of HYSAs?
Three reasons: (1) friction: opening a brokerage or TreasuryDirect account is more work than opening a savings account; (2) habit: savings accounts are familiar; (3) the state-tax exemption is invisible until you compute after-tax yield. None of these reasons mean the HYSA is the better choice for high-balance, high-tax-state savers.
Can I have both?
Yes, and most high-net-worth households do. Use a HYSA for $25K-$50K of immediate-access emergency cash. Park additional cash (above the FDIC cap or above the access need) in T-bills.
How does Treasury MMF (SGOV, BIL, USFR) compare?
Treasury ETFs hold T-bill portfolios at a small expense ratio (3-15 bps). They give you intraday liquidity, automatic reinvestment, and capture the T-bill yield minus the fee. Most of their dividends are state-tax exempt (often 95-100%). For most savers, a Treasury ETF is functionally identical to a T-bill ladder with less friction.
Do all HYSAs offer the same FDIC coverage?
Yes. FDIC is a federal program, identical at every member bank: $250K per depositor per bank per ownership category. The bank's marketing about 'enhanced' coverage is usually about ownership-category structuring, not extra protection.
Are HYSAs taxed differently than checking?
No, identical. Interest is taxable federally and at the state level as ordinary income, reported on 1099-INT.
Can a HYSA cut my rate without notice?
Yes. HYSA rates are 'variable' by definition. Banks reprice often, sometimes monthly. A 'promotional' HYSA rate can drop 50-100 bps within months of opening. T-bills, once purchased, are fixed for the term.
Should I rate-shop HYSAs aggressively?
It earns money but takes time. Switching between Marcus, Wealthfront, and SoFi quarterly to catch the top rate adds 15-30 bps of annual yield. If your balance is $100K+, that's $150-$300, worth a small effort. If it's $10K, it isn't.
Are T-bills riskier than HYSAs?
No. T-bills are the safest dollar-denominated debt instrument on earth: the U.S. Treasury directly. HYSAs are bank deposits, FDIC-insured to $250K. Both are essentially default-free at typical retail balances. Above $250K per bank, T-bills win unambiguously.
Related reading
- T-bills explained
- T-bills vs CDs
- State tax on Treasury interest
- CD reviews and HYSA comparisons
- MYGA rates 2026: higher-yield alternative
HYSAs and T-bills are both fine for emergency cash. Neither is right for 3-10 year money.
Hans Goldstein, independent licensed insurance producer.
For the cash above your emergency reserve (money you can confidently leave alone for 3-10 years), MYGAs pay 100+ basis points more than either HYSAs or T-bills, tax-deferred. Worth seeing the after-tax math on the portion of your cash that doesn't need weekly liquidity.
Send your details and within one business day you'll get a written side-by-side: the Treasury option vs. the top 3 MYGAs from A-rated carriers at the same term, end-of-term math at your actual dollar amount, and after-tax yield computed at your state bracket. We’ll email it to you.
Rather talk it through? Or book 15 minutes on Hans’s calendar, or call 213-414-2808.
Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple A-rated carriers
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Disclosure
This review reflects publicly available Treasury auction results, TreasuryDirect documentation, and approximate market yields as of the date stated above. Treasury yields change daily; current yields differ from prior auctions and may differ from those shown here. This article is general information for educational purposes; it is not a personalized recommendation, solicitation, or offer of any specific security or insurance product. U.S. Treasury securities are backed by the full faith and credit of the United States Government. MYGA references compare Treasury yields against approximate rates from A-rated insurance carriers as of the date stated; carrier rates change monthly. State guaranty fund coverage on annuities is provided by the state insurance department and varies by state (typically $250,000-$300,000 per owner per carrier). Hans Goldstein is an independent licensed insurance producer (NPN 20602398) appointed with multiple A-rated annuity carriers; he is NOT a registered investment advisor, broker-dealer, or registered representative, and is not paid by the U.S. Treasury, TreasuryDirect, or any brokerage for this review. No compensation has been received from any third party in connection with this content. Always read the actual offering documents and consult a licensed advisor before purchasing any security or annuity. Tax discussion of 31 U.S.C. §3124 and Internal Revenue Code provisions reflects law as of 2026 and is subject to change.