Finding Income: Savings Accounts vs T-Bills?

Finding Income: Savings Accounts vs T-Bills?

Everyone can use more cash. You and many others may be looking for a way to earn more on your savings than what your bank pays.

More is better and getting more is easy.

Here is some simple math:

  • Americans have an average $5,300 in their bank accounts.1
  • Banks pay an average of 0.42% on savings accounts, so that’s $22.26 per year (0.42% x $5,300) in income2
  • US Government T-Bills (T-Bills) currently yield about 5%, which is $265.00 per year (5% x $5,300).3

Earn more: By moving $5,300 from traditional banks to T-Bills you could earn $242.74 more per year. How?

One way is to invest in an ETF designed to own T-Bills. They are easy to find, easy to use.

Where to get 12x More Yield on Your Savings

T-Bills. What are they?

Treasury Bills (T-Bills) represent your interest in a short-term loan to the U.S. government. T-bills are Government guaranteed and considered “low risk” investments compared to stocks or corporate bonds.

T-Bills can offer you more income

As the Fed has raised rates, T-bill yields have risen faster than the savings account interest rates at most big banks.

Short-term 3-month T-Bills currently yield over 5% compared to just 0.42% for traditional savings accounts. That is over 12 times more income on your savings. That means earning more cash on your cash and a reason to “skip the banks”.

How to Invest in T-Bills for Income?

Exchange traded funds (ETFs) are an easy and cost-effective way to boost your income through T-Bills. You can invest in ETFs designed to track portfolios of short-term T-bills and get passive income from regular income distributions. Some short-term T-bill ETFs pay monthly distributions. A bonus is income on US T-Bills is exempt from state and local taxes. Pretty sweet! Keep more of your savings when you invest with T-bills.

1. Changes in U.S. Family Finances from 2016 to 2019: Evidence from the Survey of Consumer Finances, Vol. 106, No. 5 (
2. US Savings Account Rate
3. 3-month Treasury Bill Rate. Over 5.00% as of 6/30/2023: Based on the 30-day SEC yield of the Beanstox short-duration bond portfolio ETF constituents. The 30-day SEC yield is a standard metric defined by the U.S. Securities and Exchange Commission (SEC) and reflects the dividends and interest earned during the period after the deduction of the ETF’s expenses. There are no assurances that this yield will be sustainable in the future. This product will invest in one or more ETFs, but results may vary due to expenses and other factors.

Subscribe to Our Blog

Share your email address with us so we can alert you when a new blog post is published. Keep an eye out for personal finance tips, invitations to live events, and more to help you build a bright financial future.

NEW 2023 - Subscribe to Our Blog - Individual article page