Best Interest Rates Survey: Bank Accounts, Treasury Bills, Money Markets, ETFs – December 2025
Here’s my monthly survey of the best interest rates on cash as of December 2025, roughly sorted from shortest to longest maturities.
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. All investments carry risks; please exercise caution.
Overview: Yield Comparison Across Investment Tools
| Investment Type | Typical APY / Yield | Minimum / Recommended Amount | Risks / Limitations | Target Audience |
|---|---|---|---|---|
| High-Yield Savings / Money Market Accounts | Approx. 4.0% – 4.5% APY (varies by bank & time) ([bankrate.com](https://www.bankrate.com/banking/money-market/rates/?utm_source=chatgpt.com)) | $500 – $1,000+ | Rates may fluctuate; some accounts have balance/deposit requirements | Conservative savers, cash management, emergency funds |
| Short-Term U.S. Treasury Bills (T-Bills) | Recent auction yields ~4.5% depending on term ([Wikipedia](https://en.wikipedia.org/wiki/Treasury_bill)) | $1,000 minimum (varies by issue) | Liquidity good, but selling before maturity may involve market price fluctuations | Steady investors, short-to-medium-term cash storage |
| Short-Term Bonds / Bond ETFs / Money Market Funds | Slightly higher than savings accounts, depending on fund & fees ([districtcapitalmanagement.com](https://districtcapitalmanagement.com/best-short-term-investments/?utm_source=chatgpt.com)) | Depends on brokerage/fund (generally lower than bank deposits) | Market, interest rate, and credit risk | Investors seeking moderate risk with higher liquidity |
1. High-Yield Savings / Money Market Accounts
Recent data shows many banks and credit unions offer high-yield savings accounts with 4.0% – 4.5% APY. Depositing $10,000 for one year at 4.5% APY would generate roughly $450 (slightly higher if compounded).
Advantages:
- FDIC / NCUA insured (up to $250,000)
- High liquidity — funds can be accessed anytime
- Simple setup, ideal for cash management or emergency funds
Considerations:
- Some accounts require minimum balances or tiered rates
- Rates may fluctuate — if market rates drop, your yield drops too
2. U.S. Treasury Bills (T-Bills)
Short-term T-Bills are sold at a discount (e.g., 13, 26, or 52-week terms) and redeemed at face value. They are widely considered one of the safest fixed-income instruments. ([Wikipedia](https://en.wikipedia.org/wiki/Treasury_bill))
Recent 13–26 week T-Bill auction yields are around 4.5%–4.7%, making them suitable for secure short-term cash storage. ([districtcapitalmanagement.com](https://districtcapitalmanagement.com/best-short-term-investments/))
Advantages:
- Extremely low credit risk (backed by U.S. Treasury)
- Suitable for short-to-medium-term investments — predictable returns and good liquidity
Considerations:
- Minimum purchase usually $1,000 or higher
- Reselling before maturity may involve market price fluctuations
3. Short-Term Bonds / Bond ETFs / Money Market Funds
These instruments offer a balance between liquidity and yield. Returns are slightly higher than bank accounts, but market, interest rate, and credit risks exist. ([districtcapitalmanagement.com](https://districtcapitalmanagement.com/best-short-term-investments/))
Suitable for:
- Investors seeking slightly higher returns than savings accounts
- Those wanting flexible access with moderate risk
Risk Notes:
- Funds may have management or redemption fees
- Short-term volatility possible depending on market conditions
4. Understanding APY / Yield
Many accounts and funds quote APY (Annual Percentage Yield), which accounts for compounding. In contrast, APR (Annual Percentage Rate) is used for loans or non-compounded rates. ([gate.com](https://www.gate.com/learn/articles/apr-vs-apy-what-is-the-difference/))
Understanding APY is important: two instruments with similar rates may yield different results due to compounding. Example:
Deposit $10,000 at 4.5% APY for 1 year → balance ≈ $10,450 Quarterly/monthly/daily compounding may slightly increase actual yield
5. Summary & Recommendations
- High-yield savings or money market accounts are safe for cash management
- T-Bills offer near-risk-free returns with predictable yields
- Short-term bond ETFs or funds suit investors seeking higher liquidity and moderate return
- Always check minimums, fees, and compounding frequency before committing funds
