Alternatives to a high-yield savings account
A high-yield savings account is a good home for an emergency fund: insured by the FDIC up to the limit and available any day. For money you won't need for months or years, other options may pay more – especially after tax.
Common next steps beyond savings
- Treasury bills (4 to 52 weeks) – government-backed and free of state and local income tax.
- Money-market funds – liquid, but not FDIC insured.
- CDs and Treasury notes – lock a rate for a set term.
- Bonds and bond funds – higher yields usually come with more risk or longer terms.
Rate versus after-tax rate
Savings interest is taxed by both the federal government and your state. IncomeGrid ranks every item by yield after tax for where you live: federal, state and each investment type (Treasuries, municipal bonds, corporate bonds, funds, REITs and filed offerings are each taxed differently).
See everything in one list
IncomeGrid has 40,000+ investment options screened, each with a risk level 1–5, so you can see what pays more than your bank and what risk comes with it.
See what pays more than savings →
Sources
- FDIC – Understanding deposit insurance
- FDIC – National rates and rate caps
- TreasuryDirect – Treasury bills
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