Treasury Ladder vs. HYSA Optimizer

Compare after-tax dollars earned on your cash when laddering short-term treasuries versus leaving the same balance in a high-yield savings account for the same holding period.

Total balance you plan to park in either a treasury ladder or a high-yield savings account.
Current annual percentage yield offered by your savings account.
Average annualized yield across all rungs of your treasury bill ladder.
Optional. Leave blank to assume a 12-month holding period.
Optional. Enter your combined federal and state tax rate on savings interest; blank assumes 0%.
Optional. Leave blank to mirror the HYSA tax rate or adjust to reflect state-tax exemptions on treasuries.

Educational information, not financial advice.

Examples

  • $100,000.00 deposit, HYSA 4.60% taxed at 32.00%, ladder 5.20% taxed at 24.00%, 12-month horizon ⇒ Result: $824.00 advantage for treasuries
  • $50,000.00 deposit, HYSA 4.20% taxed at 24.00%, ladder 4.80% taxed at 24.00%, 6-month horizon ⇒ Result: $114.00 advantage for treasuries

FAQ

How do I estimate the blended ladder yield?

Weight each rung by the dollars allocated—multiply each bill’s yield by its share of the ladder, then sum the weighted yields to get the blended rate.

What about TreasuryDirect purchase fees?

TreasuryDirect auction purchases have no fees. If you use ETFs or a broker that charges commissions, subtract the estimated cost from the treasury return before comparing results.

Can I model state tax exemptions?

Yes. Set the treasury tax rate to your federal bracket alone while using your combined federal and state rate for the HYSA to reflect the exemption.

Does this include early withdrawal penalties?

No. If your HYSA enforces penalties, subtract the expected fee from the HYSA return before comparing the outputs.

Additional Information

  • Positive values mean the treasury ladder delivers more after-tax interest than the HYSA for the selected horizon; negative values favor the HYSA.
  • Treasury bills are exempt from state income tax in most jurisdictions, so set a lower tax rate on ladder interest if your state honors the exemption.
  • Testing multiple horizons highlights reinvestment risk and upcoming liquidity needs before committing to longer ladders.
  • Adjust the cash allocation to evaluate incremental gains per $1,000 if you only ladder a portion of your reserve balance.

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