Financial institution Accounts, Treasury Payments, Cash Markets, ETFs – October 2025 — My Cash Weblog


Financial institution Accounts, Treasury Payments, Cash Markets, ETFs – October 2025 — My Cash Weblog

Right here’s my month-to-month survey of the perfect rates of interest on money as of October 2025, roughly sorted from shortest to longest maturities. Banks and brokerages love profiting from our idle money, and you’ll usually incomes extra money whereas conserving the identical stage of security by shifting to a different FDIC-insured financial institution or NCUA-insured credit score union. Take a look at my Final Price-Chaser Calculator to see how a lot additional curiosity you could possibly earn from switching. Charges listed can be found to everybody nationwide. Charges checked as of 10/13/2025.

TL;DR: Financial savings account rates of interest have dropped barely general. You will get 4.6% and 4.5% APY should you settle for some hoops/restrictions. Quick-term T-Invoice charges have fallen barely, now ~4.1%. Prime 5-year CD charges are ~4.3% APY, whereas 5-year Treasury price is ~3.6%.

Excessive-yield financial savings accounts*
For the reason that enormous megabanks nonetheless pay basically no curiosity, everybody ought to no less than have a separate, no-fee on-line financial savings account to piggy-back onto your present checking account. The rates of interest on financial savings accounts can drop at any time, so I record the highest charges in addition to aggressive charges from banks with a historical past of aggressive charges and stable person expertise. Some banks will bait you with a short lived high price after which decrease the charges within the hopes that you’re too lazy to depart.

  • The highest saving price for the time being: Pibank at 4.60% APY (no min), however they’ve some bizarre restrictions; like you possibly can solely use wire/Plaid to deposit and wire transfers to withdraw funds?! Presidential Financial institution has a 4.50% APY financial savings account that requires an Benefit Checking account. You’ll must resolve if the hoops are value it. CIT Platinum Financial savings is now at 3.85% APY with $5,000+ steadiness and is providing an as much as $300 deposit bonus which will increase your efficient APY for some time. There are numerous banks in between.
  • SoFi Financial institution is at 3.80% APY + as much as 4.50% APY for six months + $325 new account bonus with qualifying direct deposit. You should preserve a direct deposit of any quantity (even $1) every month for the upper APY. SoFi has traditionally aggressive charges and full banking options.
  • Here’s a restricted survey of high-yield financial savings accounts. They aren’t the highest charges, however a gaggle which have traditionally stored it comparatively aggressive such that I like to trace their historical past. I name this the “okay/good” zone of three.40%+.

Quick-term assured charges (1 12 months and beneath)
A typical query is what to do with an enormous pile of money that you simply’re ready to deploy shortly (plan to purchase a home quickly, simply bought your home, simply bought what you are promoting, authorized settlement, inheritance). My traditional recommendation is to maintain issues easy and take your time. If not a financial savings account, then put it in a versatile short-term CD beneath the FDIC limits till you’ve gotten a plan.

  • No Penalty CDs supply a set rate of interest that may by no means go down, however you possibly can nonetheless take out your cash (as soon as) with none charges if you wish to use it elsewhere. Marcus has a 13-month No Penalty CD at 3.95% APY ($500 minimal deposit). Farmer’s Insurance coverage FCU has a 9-month No Penalty CD at 4.00% APY ($1,000 minimal deposit). USA USALLIANCE Monetary CU has a 11-month No Penalty CD at 3.90% APY ($500 minimal deposit).
  • Abound Credit score Union has a 10-month certificates at 4.30% APY ($500 min). Early withdrawal penalty is 90 days of curiosity. Anybody can be a part of this credit score union by way of $10 membership charge to affix associate group.

Cash market mutual funds
Many brokerage companies that pay out little or no curiosity on their default money sweep funds (and preserve the distinction for themselves). Be aware: Cash market mutual funds are highly-regulated, however finally not FDIC-insured, so I’d nonetheless follow extremely respected companies.

  • Vanguard Federal Cash Market Fund (VMFXX) is the default sweep choice for Vanguard brokerage accounts, which has a 7-day SEC yield of 4.04% (adjustments each day, but in addition works out to a compound yield of 4.12%, which is healthier for evaluating towards APY). Odds are that is a lot greater than your individual dealer’s default money sweep rate of interest.
  • Vanguard Treasury Cash Market Fund (VUSXX) is another cash market fund which you need to manually buy, however the curiosity will probably be principally (100% for 2024 tax 12 months) exempt from state and native revenue taxes as a result of it comes from qualifying US authorities obligations. Present 7-day SEC yield of 4.04% (compound yield of 4.12%).

Treasury Payments and Extremely-short Treasury ETFs
An alternative choice is to purchase particular person Treasury payments which are available quite a lot of maturities from 4-weeks to 52-weeks and are absolutely backed by the US authorities. You may as well put money into ETFs that maintain a rotating basket of short-term Treasury Payments for you, whereas charging a small administration charge for doing so. T-bill curiosity is exempt from state and native revenue taxes, which might make a big distinction in your efficient yield.

  • You’ll be able to construct your individual T-Invoice ladder at TreasuryDirect.gov or by way of a brokerage account with a bond desk like Vanguard and Constancy. Listed here are the present Treasury Invoice charges. As of 10/10/25, a brand new 4-week T-Invoice had the equal of 4.09% annualized curiosity and a 52-week T-Invoice had the equal of 3.61% annualized curiosity.
  • The iShares 0-3 Month Treasury Bond ETF (SGOV) has a 4.12% 30-day SEC yield (0.09% expense ratio) and efficient length of 0.10 years. SPDR Bloomberg Barclays 1-3 Month T-Invoice ETF (BIL) has a 4.02% 30-day SEC yield (0.136% expense ratio) and efficient length of 0.15 years. The brand new Vanguard 0-3 Month Treasury Invoice ETF (VBIL) has a 4.12% 30-day SEC yield (0.07% expense ratio) and efficient length of 0.10 years.

US Financial savings Bonds
Sequence I Financial savings Bonds supply charges which can be linked to inflation and backed by the US authorities. You should maintain them for no less than a 12 months. If you happen to redeem them inside 5 years there’s a penalty of the final 3 months of curiosity. The annual buy restrict for digital I bonds is $10,000 per Social Safety Quantity, obtainable on-line at TreasuryDirect.gov.

  • “I Bonds” purchased between Could 2025 and October 2025 will earn a 3.98% price for the primary six months. The speed of the following 6-month interval will probably be primarily based on inflation once more. Extra on Financial savings Bonds right here.
  • In mid-October 2025, the CPI will probably be introduced and you’ll have a brief interval the place you’ll have a really shut estimate of the speed for the following 12 months. I’ll submit one other replace at the moment.

Rewards checking accounts
These distinctive checking accounts pay above-average rates of interest, however with distinctive dangers. It’s important to leap via sure hoops which normally contain 10+ debit card purchases every cycle, a sure variety of ACH/direct deposits, and/or a sure variety of logins monthly. If you happen to make a mistake (or they choose that you simply did) you danger incomes zero curiosity for that month. Some of us don’t thoughts the additional work and a spotlight required, whereas others would fairly not trouble. Charges can even drop abruptly, leaving a “bait-and-switch” feeling.

  • OnPath Federal Credit score Union (my overview) pays 7.00% APY on as much as $10,000 should you make 15 debit card purchases, choose into on-line statements, and login to on-line or cellular banking as soon as per assertion cycle. Anybody can be a part of this credit score union by way of $5 membership charge to affix associate group. You may as well get a $150 Visa Reward card whenever you open a brand new account and make qualifying transactions.
  • Genisys Credit score Union pays 6.75% APY on as much as $7,500 should you make 10 debit card purchases of $5+ every per assertion cycle, and choose into on-line statements. Anybody can be a part of this credit score union by way of $5 membership charge to affix associate group.
  • Oklahoma Central Credit score Union pays 6.00% APY on as much as $10,000 should you make 15 debit card purchases (non-ATM) per assertion cycle. Anybody can be a part of this credit score union if they’re “affiliated with one other credit score union”.
  • La Capitol Federal Credit score Union pays 5.75% APY on as much as $10,000 should you make 15 debit card purchases of no less than $5 every per assertion cycle. Anybody can be a part of this credit score union by way of associate group, Louisiana Affiliation for Private Monetary Achievement ($20).
  • First Southern Financial institution pays 5.50% APY on as much as $25,000 should you make no less than 15 debit card purchases, 1 ACH credit score or cost transaction, and enroll in on-line statements.
  • Credit score Union of New Jersey pays 6.00% APY on as much as $25,000 should you make 12 debit card purchases, choose into on-line statements, and make no less than 1 direct deposit, on-line invoice cost, or computerized cost (ACH) per assertion cycle. Anybody can be a part of this credit score union by way of $5 membership charge to affix associate group.
  • Andrews Federal Credit score Union pays 5.50% APY (down from 6%) on as much as $25,000 should you make 15 debit card purchases, choose into on-line statements, and make no less than 1 direct deposit or ACH transaction per assertion cycle. Anybody can be a part of this credit score union by way of associate group.
  • Discover a locally-restricted rewards checking account at DepositAccounts.

Certificates of deposit (higher than 1 12 months)
CDs supply greater charges, however include an early withdrawal penalty. By discovering a financial institution CD with an inexpensive early withdrawal penalty, you possibly can get pleasure from greater charges however preserve entry in a real emergency. Alternatively, contemplate constructing a CD ladder of various maturity lengths (ex. 1/2/3/4/5-years) such that you’ve entry to a part of the ladder annually, however your blended rate of interest is greater than a financial savings account. When one CD matures, use that cash to purchase one other 5-year CD to maintain the ladder going. Some CDs additionally supply “add-ons” the place you possibly can deposit extra funds if charges drop.

  • United Constancy Financial institution has a 5-year certificates at 4.30% APY ($1,000 minimal), 4-year at 4.25% APY, 3-year at 4.20% APY, 2-year at 4.20% APY, and 1.5-year at 4.25% APY. Early withdrawal penalties should not disclosed clearly on-line.
  • Mountain America Credit score Union (MACU) has a 5-year certificates at 4.00% APY ($500 minimal), 4-year at 4.00% APY, 3-year at 4.00% APY, 2-year at 4.25% APY, and 1-year at 4.00% APY. Early withdrawal penalty for the 4-year and 5-year is three hundred and sixty five days of curiosity. Anybody can be a part of this credit score union by way of associate group American Client Council for a one-time $5 charge (or strive promo code “shopper”).
  • Lafayette Federal Credit score Union (LFCU) has a 5-year certificates at 3.97% APY ($500 minimal), 4-year at 3.97% APY, 3-year at 3.97% APY, 2-year at 4.02% APY, and 1-year at 4.02% APY. Barely greater charges with jumbo $100,000+ balances. Be aware that the early withdrawal penalty for the 5-year is a comparatively massive 600 days of curiosity. Anybody nationwide can be a part of LFCU by becoming a member of the Dwelling Possession Monetary Literacy Council (HOFLC) for a one-time $10 charge.
  • You should buy certificates of deposit by way of the bond desks of Vanguard and Constancy. Chances are you’ll want an account to see the charges. These “brokered CDs” supply FDIC insurance coverage and simple laddering, however they don’t include predictable early withdrawal penalties. Proper now, I see a 5-year non-callable brokered CD at 3.75% APY (callable: no, name safety: sure). Be warned that each Vanguard and Constancy will record greater charges from callable CDs, which importantly means they will (and can!) name again your CD if charges drop considerably later.

Longer-term Devices
I’d use these with warning as a consequence of elevated rate of interest danger (tbh, I don’t use them in any respect), however I nonetheless observe them to see the remainder of the present yield curve.

  • Prepared to lock up your cash for 10 years? You should buy long-term certificates of deposit by way of the bond desks of Vanguard and Constancy. These “brokered CDs” supply FDIC insurance coverage, however they don’t include predictable early withdrawal penalties. You would possibly discover one thing that pays greater than your different brokerage money and Treasury choices. Proper now, I see a 10-year CDs at [n/a] (non-callable) vs. 4.05% for a 10-year Treasury. Be careful for greater charges from callable CDs the place they will name your CD again if rates of interest drop.

All charges have been checked as of 10/13/25.

* I now not suggest fintech corporations as a consequence of the potential for important loss as a consequence of poor recordkeeping and the shortage of presidency safety in such situations. The purpose of money is absolute security of principal.

Photograph by Giorgio Trovato on Unsplash

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