Cash you will spend within a year has a deadline, and the deadline changes the question. The goal is not the highest yield available, but the best yield that will be there, in full, on a known date. Over a horizon this short, a stock or bond fund's price swings can easily outweigh any extra income. The options below are grouped by horizon, about 3, 6 and 12 months, and compared on what they pay, what could go wrong and how quickly you can get out. Money with no fixed date, such as an emergency reserve, involves different trade-offs, covered in where to keep an emergency fund.
Today's Treasury bill rates
Treasury publishes bill rates every business day, and the table below refreshes automatically with the latest discount rate, investment yield and price for each term.
| Term | Discount rate | Investment yield | Price per $1,000 | Yield vs a month ago | Yield vs a year ago |
|---|---|---|---|---|---|
| 4-week | 3.91% | 3.98% | $996.96 | +0.07 pts | 0.00 pts |
| 6-week | 3.91% | 3.98% | $995.44 | -0.04 pts | +0.04 pts |
| 8-week | 4.00% | 4.08% | $993.78 | +0.02 pts | +0.11 pts |
| 13-week | 3.99% | 4.08% | $989.91 | -0.05 pts | +0.23 pts |
| 17-week | 4.07% | 4.18% | $986.55 | -0.05 pts | +0.31 pts |
| 26-week | 4.11% | 4.25% | $979.22 | -0.09 pts | +0.43 pts |
| 52-week | 4.17% | 4.36% | $957.84 | -0.18 pts | +0.66 pts |
Compare the investment yield column with savings APYs and CD rates; the discount rate understates what a bill actually earns. Discount rate vs investment rate explains why, and what is a Treasury bill covers how bills are issued and priced. The horizon tables further down use the close on October 30, 2026, so their arithmetic stays fixed even as the live table moves.
Where should cash for about three months go?
For about three months, high-yield savings, a government money market fund and a 13-week bill all fit; the bill locks in a rate, while the others float.
| Option | Yield benchmark, late October 2026 | What could go wrong | Getting the money |
|---|---|---|---|
| High-yield savings | 0.38% national average; rates vary widely by bank | The bank can cut the rate at any time | Same day, or a business day or two from another bank |
| Government money market fund | Moves with short bill rates, minus fund expenses | Not insured; a small chance of a loss | Sell on any business day |
| 13-week Treasury bill | 4.08% investment yield on October 30 | A market price below cost if sold early | At maturity, or a broker sale |
| 3-month bank CD | 1.14% national average | An early withdrawal penalty | At maturity |
| 4- to 8-week bills, rolled | 3.98% to 4.08% on October 30 | The rate resets at every roll | Every four to eight weeks |
For a payment due on a specific date in about three months, a 13-week bill timed to mature a few days earlier removes the guesswork. When the date may shift, a money market fund or savings account keeps every dollar available, at the cost of a floating rate. Rolling shorter bills sits in between, though bills bought at TreasuryDirect must be held there for 45 calendar days before they can move to a broker, which rules out selling a 4-week bill held there.
Many 3-month bank CDs pay well below Treasury bills because the national average is weighted toward large banks with low rates. Comparing an individual bank's offer, or a brokered CD, against the bill yield is the useful test; T-bills vs CDs walks through that comparison.
Where should cash for about six months go?
A 26-week bill or a 6-month CD fixes the rate until a set date, which suits a known expense such as tuition or a spring tax payment.
On October 30, 2026 the 26-week bill yielded 4.25%, against a 1.39% national average for 6-month CDs. Individual banks and brokered CDs can pay much more than that average, so shop the specific offer. Three features separate the two:
- Tax. Bill interest is exempt from state and local income tax; CD interest is not. At a 6% state income tax rate, the 4.25% bill is worth about as much as a fully taxable 4.52% (4.25% ÷ 0.94). Are T-bills taxable covers the rules and Form 1099-INT.
- Getting out early. A bank CD charges a penalty set in its account agreement. The federal floor is seven days' simple interest for withdrawals in the first six days, and banks may set far steeper penalties beyond that. A bill can be sold through a broker at the market price.
- Protection. CDs are covered by deposit insurance up to $250,000 per depositor, per insured bank, per ownership category; bills are backed by the full faith and credit of the US government, with no dollar cap.
A government money market fund also works for six months if the date is uncertain, but its yield will follow any change in the Fed's target range along the way. T-bills vs money market funds compares that trade-off in detail.
Where should cash for about a year go?
For about a year, a 52-week bill or a 12-month CD locks a rate for the whole period, while I bonds are possible but awkward.
The 52-week bill yielded 4.36% on October 30, 2026, and the FDIC's national average for 12-month CDs was 1.76%. A 52-week bill is auctioned every four weeks, so you can usually find one that matures within a few weeks of a target date. Holding it means no rate cuts for a year, but also no gain if rates rise; that is the trade you make for certainty.
I bonds are the other candidate, and the 12-month mark is exactly where their rules bite. Each person can buy $10,000 in electronic I bonds per person per calendar year, and the rule on early cash-outs reads: Not cashable for 12 months; cashing before 5 years forfeits the last 3 months of interest. I bonds explained covers the rate formula.
Worked example: $10,000 in I bonds cashed at 12 months
Bought in November 2026, an I bond earns 5.51% for its first six months. Treasury values I bonds in $25 units rounded to the cent: $25 × (1 + 0.0551 ÷ 2) = $25.69, so $10,000 grows to 400 × $25.69 = $10,276.00.
The rate for the next six months depends on the inflation figure Treasury announces in May 2027, which is unknown today. Cashing at 12 months gives up the last three months of interest, so you keep six months at 5.51% plus three months at the new rate. If the rate stayed at 5.51%, the bond would be worth about $10,416.00, or $416 of interest.
For comparison, a 52-week bill with a $10,000 face value bought on October 30 cost $10,000 × (1 − 0.0417 × 364 ÷ 360) = $9,578.37 and pays $421.63, a figure known on the day of purchase.
How does a maturity-matched ladder work?
You buy one Treasury bill for each known expense, sized to the amount due and timed to mature a few days before the payment date.
This is different from a rolling ladder, which reinvests each rung to keep cash coming in indefinitely; T-bill ladder covers that design. A maturity-matched ladder simply runs off as the money is spent.
Worked example: Three bills for $30,000 of known costs
A household expects a $7,000 property tax bill in early February 2027, $8,000 of tuition in early May 2027 and a $15,000 car purchase in early November 2027. On October 30, 2026 it buys one bill for each.
| Bill | Face value | Discount rate | Cost today | Interest at maturity |
|---|---|---|---|---|
| 13-week | $7,000 | 3.99% | $6,929.40 | $70.60 |
| 26-week | $8,000 | 4.11% | $7,833.77 | $166.23 |
| 52-week | $15,000 | 4.17% | $14,367.55 | $632.45 |
| Total | $30,000 | $29,130.72 | $869.28 |
Each cost uses price = face value × (1 − discount rate × days ÷ 360). For the 52-week rung: $15,000 × (1 − 0.0417 × 364 ÷ 360) = $14,367.55.
Because the bills are bought at a discount, the ladder needs only $29,130.72 today, and the other $869.28 can stay in savings as a cushion. Left in a savings account at the 0.38% national average until each bill came due, the same $30,000 would earn about $7,000 × 0.0038 × 0.25 + $8,000 × 0.0038 × 0.5 + $15,000 × 0.0038 = $78.85. In a state with a 5% income tax, the bills also avoid about $869.28 × 0.05 = $43.46 of state tax.
Timing matters for the federal return too. The IRS generally counts bill interest in the year a bill matures, so all $869.28 from this ladder belongs on the 2027 return, even though every bill was bought in 2026.
When a bill held at TreasuryDirect matures, the face value goes straight to the bank account on file; since August 24, 2026, it no longer parks the proceeds in its zero-interest Certificate of Indebtedness. Bills held at a broker pay into the brokerage cash balance instead. What happens when a T-bill matures covers rollovers and timing.
Why not use a bond fund or stocks for money needed this year?
Neither has a maturity date, so their price on your spending date is unknown, and one bad year can cost more than several years of extra yield.
A short-term bond fund holds many bonds and replaces them as they mature, so the fund itself never pays back a fixed amount on a fixed day. When rates rise, its share price falls; why bond prices fall when rates rise shows the math. Investor.gov's warning covers every fund: there is no FDIC insurance or government guarantee, and both the payouts and the share value move with markets.
A Treasury bill ETF sits closer to cash, because it holds bills only, but it is still a fund trading at a market price rather than a bill with a set payoff date; T-bill ETFs vs buying T-bills compares them. Stocks are the riskiest choice over months rather than years, and where to keep a down payment shows what a dated S&P 500 decline does to a savings goal.
What are the risks of parking cash short term?
The main ones are lower rates at reinvestment, a below-cost price if you sell a bill or brokered CD early, CD penalties and uninsured balances.
- Reinvestment risk. When a bill matures or a savings bank reprices, the new rate may be lower. The Federal Reserve held its target range at 3.75% to 4.00% on October 28, 2026, after raising it in September; how Fed rate decisions affect T-bill rates explains how quickly that passes through.
- Early-sale risk. A bill or a brokered CD sold before maturity fetches the market price, which can be below what you paid if rates have risen. Brokered CDs explained covers the secondary market for CDs.
- Penalty risk. A bank CD's early withdrawal penalty is whatever its agreement says, above the federal minimum, so read it before you deposit.
- Inflation risk. The BLS put annual inflation at 3.7% in September 2026, so a savings account paying the 0.38% average lost ground in real terms. Real returns and inflation shows how to compare yields after inflation.
- Coverage gaps. Money market funds are not insured, and brokerage SIPC protection of $500,000 per customer, including up to $250,000 in cash replaces missing assets at a failed firm, not market losses. Large bank balances need checking against deposit insurance limits.
- Access hiccups. TreasuryDirect sign-in now requires an ID.me account, the only way to sign in since October 28, 2026, so set it up before you need to manage a maturing bill.
Bill yields here are Treasury's October 30, 2026 closing quotes, CD and savings figures are the FDIC's October 2026 national rates, and both were checked on November 1, 2026 (editorial policy). The safe investments hub has the rest of this series, and our calculators page lists every tool, including compound interest projections for savings.