Treasury bills vs CDs in November 2026: a 52-week Treasury bill yielded 4.38% on November 2, according to the Treasury's daily bill rates, while the national average 12-month CD paid 1.76% as of the FDIC's October 19 survey. On $50,000, that is about $2,190 a year from the bill against $880 from an average CD. Bills also skip state and local income tax. A CD can still win if you find one well above the national average, want a fixed rate beyond a year, or prefer the simplicity of FDIC insurance at your own bank. The gap between the average and the best is the whole story, so the comparison has to be made rate by rate.

The rates side by side

Treasury bill yields, coupon-equivalent basis, from the Treasury's daily bill rates for November 2, 2026:

• 4-week: 3.97%
• 13-week: 4.13%
• 26-week: 4.29%
• 52-week: 4.38%

National average deposit rates published by the FDIC, as of October 19, 2026:

• Savings: 0.38%
• Money market account: 0.63%
• 3-month CD: 1.14%
• 6-month CD: 1.39%
• 12-month CD: 1.76%
• 24-month CD: 1.55%
• 60-month CD: 1.41%

The coupon-equivalent yield is the figure to use, because it states a bill's return on an annual basis comparable with a CD's annual percentage yield. The "bank discount" rate the Treasury also publishes is lower and is not directly comparable.

Why the national average is so low

The FDIC average blends every bank that reports, including large banks that pay very little on deposits. Many online banks, credit unions and brokered CDs pay far more than the average. So the real question is not bills against the average CD. It is bills against the best CD you can actually get.

That makes the comparison a two-step check. Find the bill yield for your term, then find the best CD for the same term and adjust it for tax.

The state tax adjustment, with the math

Treasury bill interest is subject to federal income tax but exempt from state and local income tax. CD interest is taxable at all three levels. In a state with an income tax, a CD has to pay more than a bill just to match it after tax.

The simple test divides the bill yield by one minus your state tax rate. For a hypothetical 5% state rate and the 52-week bill at 4.38%:

• Break-even CD rate: 4.38% ÷ (1 − 0.05) = 4.61%.

At a 9% state rate, the same bill needs a CD paying 4.38% ÷ 0.91 = 4.81% to match. In a state with no income tax, the break-even is simply the bill yield. The shortcut ignores interactions with federal deductions, so treat it as a close guide rather than an exact figure.

What $50,000 earns in each

A worked example using the published rates, before tax, assuming each is held for the full year:

• 52-week Treasury bill at 4.38%: $50,000 × 4.38% ≈ $2,190.
• National average 12-month CD at 1.76%: $50,000 × 1.76% = $880.
• Difference: about $1,310 a year in the bill's favor.

Against a CD paying near the bill's yield, the gap shrinks to the state tax effect alone. That is why shopping for the CD rate matters far more than the choice of product.

Safety: two different guarantees

Both are about as safe as cash gets, but the protection works differently.

• Treasury bills are direct obligations of the U.S. government, with no dollar limit on the backing.
• Bank CDs are covered by FDIC deposit insurance up to $250,000 per depositor, per insured bank, for each account ownership category. Above that, spreading money across banks or ownership categories keeps it insured.

For sums well above $250,000, bills avoid the need to split money across banks.

Liquidity and lock-ups

This is where CDs and bills differ most in practice.

• CDs usually charge an early withdrawal penalty, often a set number of months of interest. Read the terms before buying.
• Treasury bills can be sold before maturity in a brokerage account at the market price. That price can be slightly above or below what you paid, depending on how rates have moved, but on short bills the change is usually small.
• Brokered CDs, bought through a brokerage account, can also be sold before maturity, but the secondary market for them is thinner than for bills.

Rate certainty beyond a year

Bills mature in a year or less. If you want a known rate for two or three years, a CD or a Treasury note does that, while bills need to be rolled over at whatever rates prevail. Rolling bills works well when rates are steady or rising. If rates fall, each rollover pays less.

The FDIC averages show the market's expectation in miniature: the national 24-month CD average of 1.55% sits below the 12-month average of 1.76%. Longer locks are not paying a premium at the average bank right now.

How to buy Treasury bills

There are two easy routes. Through TreasuryDirect, you place a noncompetitive bid before an auction and receive the auction's rate, with the bill held in your TreasuryDirect account. Through a brokerage account, you can buy new bills at auction or existing bills on the secondary market, and they sit alongside your other investments, which makes selling before maturity simpler.

The Treasury auctions most bill terms every week, so there is rarely a long wait. Many brokerage accounts can also roll a maturing bill into a new one automatically. If you do that, check the new rate at each rollover, since it changes with the market.

For CDs, compare the bank's annual percentage yield, the early withdrawal penalty and whether the CD can be sold or only redeemed. A brokered CD bought through a brokerage account is insured the same way as a bank CD, but its price can move if you sell before maturity.

How to choose

• Money you need within a year, in a state with income tax: Treasury bills usually win after tax unless you find an unusually high CD rate.
• Money you want locked at a known rate for two years or more: compare the best multi-year CD against a Treasury note of the same term.
• Large sums: bills avoid FDIC limits.
• A simple setup at your existing bank: a CD is fine, provided its rate is competitive. The national average is not.

To put bills to work in stages, see our step-by-step guide to building a Treasury bill ladder, and for the wider rate picture, what high Treasury yields mean for savers. More is in Markets and on the front page.

FAQ

Do Treasury bills pay more than CDs right now?

Against the national average, yes: the 52-week bill yielded 4.38% on November 2, 2026, against a 1.76% average 12-month CD in the FDIC's October 19 data. Against the best available CDs, the gap can be small or reversed, so compare specific rates.

Is Treasury bill interest taxable?

It is subject to federal income tax but exempt from state and local income tax. CD interest is taxable at the federal, state and local levels.

Can I lose money on a Treasury bill?

Not if you hold it to maturity, when you receive its full face value. Selling before maturity happens at the market price, which can be slightly lower than what you paid.

Are CDs FDIC insured?

Bank CDs are insured up to $250,000 per depositor, per insured bank, for each account ownership category.