The Overnight RateThe Overnight Rate · Live rates
The average savings account pays 0.38% APY. A 3-month T-bill pays 4.22%.
Cash is paying more than most savers are getting. Here is the gap, in dollars.
Treasury yields today
| Maturity | Yield | Change | Interest on $25,000, 1 yr |
|---|---|---|---|
| 1 month | 4.11% | 0 bp | $1,028 |
| 3 month | 4.22% | 0 bp | $1,055 |
| 6 month | 4.30% | +1 bp | $1,075 |
| 1 year | 4.44% | +3 bp | $1,110 |
| 2 year | 4.69% | +4 bp | $1,173 |
Source: U.S. Department of the Treasury, Daily Treasury Par Yield Curve Rates. Latest observation: Fri, Oct 23, 2026 close. Pulled Oct 26, 2026, 10:30 AM ET. Par (bond-equivalent) yields; dollar column assumes the rate holds for a year. The latest 13-week bill auction (Tue, Oct 13, 2026) cleared at a 4.185% investment rate (auction results).
National deposit rates
National average annual percentage yields (APY), accurate as of October 2026, as published by the FDIC. These are averages across banks, not offers from any one bank.
| Account | National average APY | Prior month | Interest on $25,000, 1 yr |
|---|---|---|---|
| Savings | 0.38% | 0.37% | $95 |
| 12-month CD (12-month term) | 1.76% | 1.73% | $440 |
| Savings rate cap (for less than well-capitalized banks) | 4.63% |
Source: FDIC, National Rates and Rate Caps (monthly), via FRED. Latest observation: October 2026. Pulled Oct 26, 2026, 10:30 AM ET. The FDIC publishes these once a month. Rates are variable for savings accounts and can change after an account is opened. Any specific account may require a minimum opening deposit or balance, fees can reduce earnings, and CDs lock in a term with an early-withdrawal penalty. For a specific account, use the annual percentage yield on the bank's own rate page and the date you checked it; for an app or fintech account, check which partner bank holds the deposits and provides the FDIC coverage.
How they compare
| Feature | Treasury bills | Savings accounts | CDs |
|---|---|---|---|
| Backing | U.S. government | FDIC insurance up to $250,000 per depositor, per bank, per category | Same FDIC limits (NCUA at credit unions) |
| Rate | Set at auction, fixed to maturity | Variable, can change any time | Fixed for the term |
| Access | Held to maturity (4 to 52 weeks), or sold before then at market price | Anytime; some banks limit withdrawals | Early-withdrawal penalty |
| Taxes | Federal tax; exempt from state and local income tax | Federal, state and local | Federal, state and local |
The plumbing: the Fed sets the overnight rate (target range 3.75% to 4.00%, details), bill yields follow it within days, and bank deposit rates follow with a lag and only part of the way. That lag is why the national average savings rate sits 384 bp below a 3-month bill.
Because bill interest is exempt from state and local income tax, a bill and a savings account with the same stated rate leave different amounts after tax, depending on where you live. Run your own numbers in the T-bill vs. savings calculator.
What the market expects: for the October 27-28, 2026 FOMC meeting, the "No change" contract on Polymarket US traded at 93.5¢ per $1, about 94%, as of Oct 26, 2026, 10:30 AM ET. Market prices, not forecasts; we cite them as data only.
Common questions
Are T-bills safer than a high-yield savings account?
Treasury bills are backed by the U.S. government. Bank deposits are insured by the FDIC up to $250,000 per depositor, per insured bank, per ownership category. Both are considered very low credit risk within those terms; the differences are in access, rate changes and taxes.
Are T-bills exempt from state tax?
Interest on Treasury bills is subject to federal income tax but exempt from state and local income tax. Savings account and CD interest is taxed at all three levels.
What is the national average savings rate?
The FDIC's national average annual percentage yield on savings accounts was 0.38% APY, accurate as of October 2026. It is an average across banks, so many online banks pay more and many large banks pay less.
How do I buy a T-bill?
You can buy bills at auction directly from the Treasury through TreasuryDirect, with a $100 minimum, or through a brokerage account at auction or on the secondary market.
Official sources: TreasuryDirect: Treasury bills · FDIC deposit insurance · FDIC national rates