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nozzery t1_jae2mnc wrote

If you pay state income tax, $0, because you can make more yield on <1yr TBills due to there being no state tax on tbills. A 1mo Tbill earns 4.6%, which is 5.11% effective yield if you have 10% state tax (do the match for your own situation).

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Rattingaroundd OP t1_jae37w0 wrote

I'm not sure what you mean

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MGK_1223 t1_jae54ry wrote

An alternative to investing in CDs is investing in Treasury bills (can do through Treasury Direct or your brokerage account). Currently, the annualized yield for a Treasury bill is higher than the 5% you're seeing for a CD (the 6-month one is 5.11% on Schwab for example). And while interest on CDs is taxable at the federal and state level, interest on Treasury bills is exempt from state and local taxes. Could be advantageous if you live in a high income tax state.

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