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Treasury vs CD calculator
Put your amount, rates and tax brackets in: $10,000 for 1 year at 22% federal and 5% state tax is $350.69 after tax for the Treasury and $346.75 for the CD. The state exemption is what decides it.
★ COMPARISONS · TREASURY VS CD · AFTER TAX
Treasury vs CD Calculator: After-Tax Return Compared
On $10,000 for 1 year, the 4.496% Treasury keeps $350.69 after tax and the top 4.75% CD keeps $346.75 — the Treasury wins by $3.94, because its interest escapes the state tax. Compare Treasury vs CD after tax: the interest, the tax on both sides, and the winner. This one is the TREASURY-VS-CD comparison — the after-tax return on safe money — the cd-calculator page is the CD tool — the return on one CD — not the comparison; the cd-vs-high-yield-savings page is the CD-VS-HIGH-YIELD-SAVINGS comparison — CDs against savings accounts — not Treasuries; and the cd-ladder-calculator page is the CD-LADDER tool — staggering CDs across terms — not the Treasury comparison.
What does the Treasury winning by $3.94 mean?
It means that, on the defaults, the Treasury leaves you $3.94 better off after tax than the CD — even though the CD pays more before tax. The CD earns $475.00 of interest against the Treasury's $449.60, a $25.40 head start. But the tax takes $128.25 from the CD and only $98.91 from the Treasury, because Treasury interest is exempt from state income tax while CD interest is taxed by both the federal government and the state. After tax the Treasury keeps $350.69 and the CD keeps $346.75 — the state tax is the whole gap, and then some.
Three things to check before you trust the number
The rate you see is not the rate you keep. The CD's 4.75% APY is a before-tax rate; after 22% federal and 5% state tax it is 3.4675%. The Treasury's 4.496% is also before tax, but only the federal 22% applies, so it keeps 3.5069%. Comparing headline rates without the tax is comparing the wrong numbers — the after-tax yield is the rate that matters, and it is the rate this calculator shows.
The state rate decides the winner. At 0% state tax the CD wins by $19.81; at 5% the Treasury wins by $3.94; at 9% the Treasury wins by $22.94. The two tie at a 4.1705% state rate. In a state with no income tax, the CD's higher rate usually wins; in a high-tax state, the Treasury's exemption is worth more than the rate gap. Your state rate is the single most important input on this page after the rates themselves.
The average CD is not the top CD. The Bankrate national average for a 1-year CD is 2.18% APY (Oct 28, 2026) — at that rate the CD keeps only $159.14 after tax and the Treasury wins by $191.55. The top rates, around 4.75% to 4.90%, come from online banks and credit unions, and some need a $10,000 minimum. A CD left to auto-renew at a big bank's average rate is the most expensive habit in this comparison — shop the rate before you lock the money up.
Worked example
On the defaults: $10,000, 1 year, 22% federal, 5% state.
- The Treasury interest: $10,000 × 4.496% is $449.60.
- The Treasury after tax: $449.60 × (1 − 0.22) is $350.69 — no state tax.
- The CD interest: $10,000 × 4.75% is $475.00.
- The CD after tax: $475.00 × (1 − 0.22 − 0.05) is $346.75.
- The winner: $350.69 beats $346.75 by $3.94.
And the other way: a CD at 4.8040% ties the Treasury after tax, a 4.1705% state rate ties them, and a 6.4961% federal bracket ties them. Over 5 years the Treasury at a 4.82% yield (4.8781% APY) keeps $2,097.33 after tax against the 5.00% CD's $2,016.86 — the Treasury wins by $80.48 even though the CD pays more before tax.
Every branch, checked
- 0% state tax instead of 5%: 0% state tax instead of 5%: Treasury: $449.60 of interest, $350.69 after tax. CD: $475.00 of interest, $370.50 after tax. The CD wins by $19.81 after tax..
- 9% state tax instead of 5%: 9% state tax instead of 5%: Treasury: $449.60 of interest, $350.69 after tax. CD: $475.00 of interest, $327.75 after tax. The Treasury wins by $22.94 after tax..
- CD at the Bankrate national average, 2.18%: CD at the Bankrate national average, 2.18%: Treasury: $449.60 of interest, $350.69 after tax. CD: $218.00 of interest, $159.14 after tax. The Treasury wins by $191.55 after tax..
- $25,000 instead of $10,000: $25,000 instead of $10,000: Treasury: $1,124.00 of interest, $876.72 after tax. CD: $1,187.50 of interest, $866.88 after tax. The Treasury wins by $9.85 after tax..
- 5 years: 4.82% Treasury yield vs 5.00% CD: 5 years: 4.82% Treasury yield vs 5.00% CD: Treasury: $2,688.89 of interest, $2,097.33 after tax. CD: $2,762.82 of interest, $2,016.86 after tax. The Treasury wins by $80.48 after tax..
- CD at 4.90% — the top credit-union rate: CD at 4.90% — the top credit-union rate: Treasury: $449.60 of interest, $350.69 after tax. CD: $490.00 of interest, $357.70 after tax. The CD wins by $7.01 after tax..
The reverses, worked backwards
- CD APY that ties the Treasury after tax: 4.8040% — at 4.8040% the figures are Treasury: $449.60 of interest, $350.69 after tax. CD: $480.40 of interest, $350.69 after tax. The CD wins by $0.00 after tax.; at the lower neighbor the figures are Treasury: $449.60 of interest, $350.69 after tax. CD: $479.40 of interest, $349.96 after tax. The Treasury wins by $0.73 after tax.; at the upper neighbor the figures are Treasury: $449.60 of interest, $350.69 after tax. CD: $481.40 of interest, $351.42 after tax. The CD wins by $0.73 after tax. — verdict: STEP.
- State tax rate that ties them: 4.1705% — at 4.1705% the figures are Treasury: $449.60 of interest, $350.69 after tax. CD: $475.00 of interest, $350.69 after tax. The CD wins by $0.00 after tax.; at the lower neighbor the figures are Treasury: $449.60 of interest, $350.69 after tax. CD: $475.00 of interest, $350.74 after tax. The CD wins by $0.05 after tax.; at the upper neighbor the figures are Treasury: $449.60 of interest, $350.69 after tax. CD: $475.00 of interest, $350.64 after tax. The Treasury wins by $0.05 after tax. — verdict: STEP.
- Federal bracket that ties them: 6.4961% — at 6.4961% the figures are Treasury: $449.60 of interest, $420.39 after tax. CD: $475.00 of interest, $420.39 after tax. The Treasury wins by $0.00 after tax.; at the lower neighbor the figures are Treasury: $449.60 of interest, $420.44 after tax. CD: $475.00 of interest, $420.44 after tax. The CD wins by $0.00 after tax.; at the upper neighbor the figures are Treasury: $449.60 of interest, $420.35 after tax. CD: $475.00 of interest, $420.35 after tax. The Treasury wins by $0.00 after tax. — verdict: STEP.
What the defaults assume
The defaults are $10,000 for 1 year at a 22% federal bracket and a 5% state rate. The Treasury rate is the 4.496% investment rate from the 52-week T-bill auction of Oct 27, 2026 (a $10,000 face bill cost $9,566.23 at that auction and earns $433.77 at maturity); the CD rate is the 4.75% APY top widely available 1-year CD. Longer terms compound annually, and a quoted Treasury yield converts to an APY by semiannual compounding — the 5-year 4.82% yield is a 4.8781% APY. Tax is applied to the total interest at the stated rates: the Treasury pays federal tax only, the CD pays federal plus state. That is a simplification — in real life the tax is paid year by year, and selling a Treasury before maturity can produce a capital gain or loss that is taxed differently. The model does not count early-withdrawal penalties on CDs, minimum deposits, or the fact that a T-bill can be sold before maturity while a CD usually cannot. Rates move weekly: the auction and survey dates on this page are the rates the comparison is built on, so check the current ones before you invest.
These notes repeat in every explainer section because this page is built to be read start to finish: the rate you see is not the rate you keep; the state rate decides the winner; and the average CD is not the top CD.
Output · formula · meaning
| Output | Formula | What it means |
|---|---|---|
| Treasury interest | amount × Treasury rate | $449.60 — $10,000.00 × 4.496%. |
| Treasury after tax | interest × (1 − federal rate) | $350.69 — $449.60 × 0.78. |
| CD interest | amount × CD APY | $475.00 — $10,000.00 × 4.75%. |
| CD after tax | interest × (1 − federal − state) | $346.75 — $475.00 × 0.73. |
| Winner (after tax) | larger after-tax amount wins | Treasury by $3.94 — $350.69 vs $346.75. |
| Treasury after-tax yield | after-tax interest ÷ amount | 3.5069% — $350.69 ÷ $10,000.00. |
| CD after-tax yield | after-tax interest ÷ amount | 3.4675% — $346.75 ÷ $10,000.00. |
| Reverse: CD APY that ties the Treasury after tax | step | 4.8040%: Treasury: $449.60 of interest, $350.69 after tax. CD: $480.40 of interest, $350.69 after tax. The CD wins by $0.00 after tax.. |
| Reverse: State tax rate that ties them | step | 4.1705%: Treasury: $449.60 of interest, $350.69 after tax. CD: $475.00 of interest, $350.69 after tax. The CD wins by $0.00 after tax.. |
| Reverse: Federal bracket that ties them | step | 6.4961%: Treasury: $449.60 of interest, $420.39 after tax. CD: $475.00 of interest, $420.39 after tax. The Treasury wins by $0.00 after tax.. |
| 0% state tax instead of 5% | same model | Treasury: $449.60 of interest, $350.69 after tax. CD: $475.00 of interest, $370.50 after tax. The CD wins by $19.81 after tax.. |
| 9% state tax instead of 5% | same model | Treasury: $449.60 of interest, $350.69 after tax. CD: $475.00 of interest, $327.75 after tax. The Treasury wins by $22.94 after tax.. |
| CD at the Bankrate national average, 2.18% | same model | Treasury: $449.60 of interest, $350.69 after tax. CD: $218.00 of interest, $159.14 after tax. The Treasury wins by $191.55 after tax.. |
| $25,000 instead of $10,000 | same model | Treasury: $1,124.00 of interest, $876.72 after tax. CD: $1,187.50 of interest, $866.88 after tax. The Treasury wins by $9.85 after tax.. |
| 5 years: 4.82% Treasury yield vs 5.00% CD | same model | Treasury: $2,688.89 of interest, $2,097.33 after tax. CD: $2,762.82 of interest, $2,016.86 after tax. The Treasury wins by $80.48 after tax.. |
| CD at 4.90% — the top credit-union rate | same model | Treasury: $449.60 of interest, $350.69 after tax. CD: $490.00 of interest, $357.70 after tax. The CD wins by $7.01 after tax.. |
| 0% on both — no interest at all | same model | Treasury: $0.00 of interest, $0.00 after tax. CD: $0.00 of interest, $0.00 after tax. An exact tie after tax.. |
| Equal rates — 4.50% on both | same model | Treasury: $450.00 of interest, $351.00 after tax. CD: $450.00 of interest, $328.50 after tax. The Treasury wins by $22.50 after tax.. |
| $0 invested | same model | Treasury: $0.00 of interest, $0.00 after tax. CD: $0.00 of interest, $0.00 after tax. An exact tie after tax.. |
| 10% state tax | same model | Treasury: $449.60 of interest, $350.69 after tax. CD: $475.00 of interest, $323.00 after tax. The Treasury wins by $27.69 after tax.. |
Who uses this
- A saver choosing where to park $10,000 — the CD pays $475.00 and the Treasury pays $449.60, but after tax the Treasury keeps $350.69 against the CD's $346.75: the comparison that matters is after tax.
- A taxpayer in a high-tax state — at 9% state tax the Treasury wins by $22.94: the state exemption is worth more than the rate gap.
- A retiree laddering safe money — over 5 years the Treasury keeps $2,097.33 after tax against the CD's $2,016.86: the same comparison, run at the longer term.
- A student learning about tax-equivalent yield — one worked example with the tax shown on both sides, and the reverses that solve for the tying rate, the tying state tax and the tying bracket.
Accuracy & limitations
Figures are the model's own totals on the numbers you type, computed from unrounded values: the Treasury interest is the amount times the Treasury rate (for terms over a year the quoted yield converts to an APY by semiannual compounding), the CD interest is the amount times the APY compounded annually, and the after-tax figures apply the stated federal and state rates to the total interest. The displayed figures are rounded to 2dp, and the tie rates are computed from the rounded $350.69 after-tax Treasury figure, so a CD at 4.8040% ties the Treasury to the cent. The model assumes the rates stay fixed for the whole term, the tax is paid once at the end, and the whole amount is invested for the whole term — real CDs charge an early-withdrawal penalty, real Treasuries can be sold early at a gain or loss, and real tax is paid year by year. The rates on this page are dated (Oct 27–28, 2026) and move weekly. This page is a calculation tool, not investment advice: talk to a financial adviser before you invest.
Cite this calculator
On $10,000.00 for 1 year at 22% federal and 5% state tax, the 4.496% Treasury keeps $350.69 after tax and the top 4.75% CD keeps $346.75 — the Treasury wins by $3.94. Treasury rate: 52-week T-bill investment rate, Oct 27, 2026 auction. CD rates: Bankrate survey, Oct 28, 2026. Source: Bright Side Kit, brightoolbox.com.
Frequently asked questions
Is a Treasury better than a CD?
After tax, on the defaults — yes, by $3.94 on $10,000 for 1 year. The CD pays more before tax, but the state tax takes the difference and more.
Why do Treasuries beat CDs after tax?
Because Treasury interest is exempt from state income tax while CD interest is not — at a 5% state rate that is worth $23.75 on $10,000. The exemption is the whole gap.
What CD rate ties the Treasury after tax?
4.8040% APY — a CD at that rate keeps the same $350.69 after tax as the 4.496% Treasury. Any CD above it wins; any below it loses.
What state tax rate makes the Treasury win?
Any state rate above 4.1705% — the two tie at that rate, and at 9% the Treasury wins by $22.94. At 0% state tax the CD wins by $19.81.
What is the average CD rate right now?
2.18% APY for a 1-year CD, per Bankrate's survey of Oct 28, 2026 — at that rate the CD keeps only $159.14 after tax. The top rates, around 4.75% to 4.90%, come from online banks and credit unions.
Can I sell a Treasury before it matures?
Yes — Treasuries trade on the secondary market, so you can sell before maturity, at a gain or a loss depending on rates. A CD usually cannot be cashed early without a penalty.
Are Treasuries safe?
Treasuries are backed by the full faith and credit of the United States, and CDs are federally insured up to the limit — both are among the safest places to put cash. The difference between them is the tax and the liquidity, not the safety.
Does the 5-year comparison change the winner?
No — over 5 years the 4.82% Treasury yield keeps $2,097.33 after tax against the 5.00% CD's $2,016.86. The Treasury wins by $80.48 even though the CD pays more before tax.