Introduction

High-yield savings accounts (HYSAs) let you earn solid interest with near-zero effort. In 2025, top banks compete on APY, no-fee policies, and slick apps. This guide compares HYSAs, explains when to consider Treasury bills or money market funds, and shows how to optimize cash without sacrificing liquidity.

What to Look For in a HYSA

• Competitive APY with fast rate updates
• No monthly fees or minimums
• Easy transfers (ACH, instant internal)
• FDIC/FSCS/Deposit protection eligibility
• Good mobile app + alerts

When to Use T-Bills or Money Market Funds

T-Bills (3–12 months) can beat HYSAs but lock funds until maturity (you can sell, but prices fluctuate). Money market funds invest in short-term government/prime instruments and often track policy rates closely. Both are great for larger balances you won't need this month.

Simple Allocation Framework

• Tier 1 (Instant): Checking + HYSA for 1–2 months of expenses.
• Tier 2 (Near-term): Money market fund for 2–6 months.
• Tier 3 (Short-term goals): T-Bills ladder for 6–18 months.

Tax & Risk Notes

HYSA interest is taxable. T-Bills may have favorable tax treatment in some countries. Money market funds are designed to be stable but are not bank deposits—understand the product before investing.

Case Study

A freelancer kept €25k idle in a standard savings account. By splitting into a top HYSA (instant), a money market fund (near-term), and a 6-month T-Bill ladder, annual interest improved by more than €500 with the same risk tolerance and better liquidity planning.

Bottom Line

Use a HYSA for day-to-day cushion, consider T-Bills or money market funds for bigger balances you don't need right away, and review rates quarterly. Smart cash placement adds real money to your bottom line with almost no effort.