Savings accounts, money market accounts, money market funds and Treasury bills are all places to keep cash you may need soon. They differ in who backs them, how you get your money back and how the interest is taxed. This guide compares them using official sources. It does not recommend any product. Facts checked November 11, 2026.
Side by side
| Savings account | Money market deposit account | Money market mutual fund | Treasury bill | |
|---|---|---|---|---|
| Where | Bank or credit union | Bank or credit union | Brokerage or fund company | TreasuryDirect, a bank or a broker |
| FDIC deposit insurance | Yes, at insured banks | Yes, at insured banks | No: mutual funds are not deposits | No: Treasury bills are not deposits |
| How it pays | Interest at a rate that can change | Interest at a rate that can change | Fund income; the value is not guaranteed | Bought at a discount or at face value; you get the face value at maturity |
| Getting your money | Any time, subject to the bank's terms | Any time, subject to the bank's terms | Sell shares through your account | At maturity (4 to 52 weeks), or sell before maturity |
| Taxes on earnings | Federal and state | Federal and state | Depends on what the fund holds | Federal only: no state or local tax |
Deposit insurance: what is and is not covered
The FDIC lists savings accounts, money market deposit accounts (MMDAs) and CDs at FDIC-insured banks as covered, up to $250,000 per depositor, per insured bank, for each account ownership category. It lists stocks, bonds, mutual funds and U.S. Treasury bills, bonds and notes as not covered by deposit insurance (FDIC: Understanding deposit insurance). Credit union accounts are covered by the NCUA's Share Insurance Fund up to $250,000.
Treasury bills in brief
- Terms of 4, 6, 8, 13, 17, 26 and 52 weeks; the minimum purchase is $100, in $100 steps.
- Bills are sold at a discount or at face value, and you are paid the face value at maturity: the difference is your interest.
- Interest is subject to federal tax but not to state or local taxes.
- You can hold a bill until it matures or sell it before then.
Source: TreasuryDirect: Treasury Bills. See today's Treasury rates on our Treasury yields today page.
Compare the rates
The FDIC's national averages on October 19, 2026 were 0.38% APY for savings and 0.63% for money market deposit accounts (FDIC). Many banks pay more or less. Interest on bank accounts and money market accounts is taxable, and you should receive Form 1099-INT if you earned $10 or more (IRS Topic 403). Because Treasury bill interest is free of state and local tax, compare after-tax yields if your state has an income tax.
Which fits which need?
- Money you may need any day, such as an emergency fund, usually needs quick access and deposit insurance.
- Money for a date you know, such as a bill due in six months, can match a CD or Treasury bill term.
- Try the numbers with the high-yield savings calculator, the CD ladder calculator and our savings account guide.
Frequently asked questions
Is a money market account the same as a money market fund?
No. A money market deposit account is a bank deposit covered by FDIC insurance at insured banks. A money market mutual fund is an investment fund, and the FDIC lists mutual funds as not covered.
Are Treasury bills FDIC-insured?
No. The FDIC lists U.S. Treasury bills, bonds and notes as not covered by deposit insurance; they are securities issued by the U.S. Treasury.
Is Treasury bill interest taxed by my state?
No. TreasuryDirect says Treasury bill interest is subject to federal tax but not to state or local taxes.
What is the minimum to buy a Treasury bill?
$100, in increments of $100.
Is interest on a savings account taxable?
Yes. Interest on bank and money market accounts is taxable, and you should receive Form 1099-INT if you earned $10 or more.