APY: The higher the better, but don't chase the absolute highest — rates change monthly FDIC insurance: Make sure the bank is FDIC-insured (covers up to $250,000 per depositor, per bank) No fees: Most online HYSAs have no monthly fees and no minimum balance Easy transfers: Look for easy linking to your primary checking account No lock-up period: Unlike CDs, HYSA money is available anytime

Emergency fund (3-6 months of expenses) — this should be in a HYSA Short-term savings (vacation, upcoming purchase within 1-6 months) Any cash you need instant access to

Treasury bills are short-term debt securities issued by the US Department of the Treasury. They're backed by the full faith and credit of the US government — essentially the safest investment in the world. Key characteristics: Maturities: 4 weeks, 8 weeks, 13 weeks, 17 weeks, 26 weeks, or 52 weeks Minimum purchase: $100 How they work: You buy at a discount and receive the full face value at maturity. The difference is your interest. Current yields: Approximately 3.4-3.7% as of February 2026 (source: US Treasury Daily Rates)

T-Bills vs HYSA: Savings Guide for Expats (2026)

Q: What happens to my T-bills or HYSA if I leave the US?

T-bills: You can keep your TreasuryDirect account and hold T-bills even after leaving the US. However, you may not be able to purchase new ones depending on your residency status. Check with TreasuryDirect customer service. HYSA: Most US banks allow you to keep your account open if you move abroad, but some may close accounts held by non-residents. Check your bank's policy before relocating. For both: consult a tax professional about reporting obligations in your new country of residence.

One of the first financial decisions I faced as an expat was: where do I put my savings? Back in Singapore, I had a system. In the US, I had a checking account earning 0.01% interest and no idea what to do next. I'm embarrassed to admit that I left a decent chunk of money in that 0.01% account for months before a colleague told me about high-yield savings accounts. Months! That's money I left on the table for no good reason.

The two best places to park your cash as an expat in the US are high-yield savings accounts (HYSA) earning around 3.5–4.5% APY and US Treasury bills (T-bills) yielding 3.4–3.7% with state tax exemption. The right choice depends on your state's income tax rate and how quickly you need access to the money.

Over the past few years, I've written about Treasury bills, the TreasuryDirect website, and high-yield savings accounts. But rates change constantly, and those posts had 2022-2023 numbers. This guide consolidates everything with February 2026 data so you don't make the same mistakes I did.

Important: Interest rates fluctuate. The rates in this guide are as of February 2026. Always check current rates before making decisions.

High-Yield Savings Accounts (HYSA)

Why You Need One

The national average savings account rate is about 0.39% APY. Meanwhile, top high-yield savings accounts offer 3.5–4.5% APY as of February 2026. That's a 10x difference.

If you have $10,000 in a traditional savings account, you'd earn about $39/year. In a HYSA? Up to $400/year. Same money, zero extra effort. When I first did this math, I was genuinely upset at how much I'd been leaving on the table. Don't be like past me — move your money!

What to Look For

APY: The higher the better, but don't chase the absolute highest — rates change monthly
FDIC insurance: Make sure the bank is FDIC-insured (covers up to $250,000 per depositor, per bank)
No fees: Most online HYSAs have no monthly fees and no minimum balance
Easy transfers: Look for easy linking to your primary checking account
No lock-up period: Unlike CDs, HYSA money is available anytime

Current HYSA Landscape (February 2026)

According to Bankrate and NerdWallet, top rates as of February 2026 range from about 3.5% to 4.5% APY. The best rates tend to come from online-only banks that don't have physical branch overhead.

I won't recommend specific banks here because rates change frequently. Instead, check the comparison sites above for current rates when you're ready to open an account.

When to Use HYSA

Emergency fund (3-6 months of expenses) — this should be in a HYSA
Short-term savings (vacation, upcoming purchase within 1-6 months)
Any cash you need instant access to

US Treasury Bills (T-Bills)

T-bills are my favorite "parking lot" for cash I don't need immediately. There's something satisfying about lending money directly to the US government and getting it back with interest — it feels very "adulting." I first wrote about them in late 2022 when rates were climbing fast.

What Are T-Bills?

Treasury bills are short-term debt securities issued by the US Department of the Treasury. They're backed by the full faith and credit of the US government — essentially the safest investment in the world.

Key characteristics:

Maturities: 4 weeks, 8 weeks, 13 weeks, 17 weeks, 26 weeks, or 52 weeks
Minimum purchase: $100
How they work: You buy at a discount and receive the full face value at maturity. The difference is your interest.
Current yields: Approximately 3.4-3.7% as of February 2026 (source: US Treasury Daily Rates)

The Tax Advantage That Matters

Here's the key advantage of T-bills over HYSA that many expats miss:

T-bill interest is exempt from state and local income tax.

This matters a lot if you live in a high-tax state. In California (state income tax up to 13.3%), New York (up to 10.9%), or New Jersey (up to 10.75%), this exemption can make T-bills more attractive than a HYSA even if the nominal rate is slightly lower.

How to Buy T-Bills

Option 1: TreasuryDirect (Direct from the Government)

TreasuryDirect.gov is the US government's platform for buying Treasury securities directly. I wrote a detailed review of the website — and yes, the design looks like it was built in 2003. But here's the thing: it works! 90% of users rate it as "good" or "excellent." Don't let the aesthetics scare you off.

Steps:

Create an account at TreasuryDirect.gov (you need an SSN and US bank account)
Link your bank account
Browse upcoming auctions and place a bid (choose "non-competitive" to accept the market rate)
Money is debited from your bank account on the auction date
At maturity, the face value is deposited back to your bank account

Auto-roll feature: You can set T-bills to automatically reinvest at maturity — useful for building a "T-bill ladder" without manual effort.

Option 2: Through a Brokerage

Major brokerages like Fidelity, Charles Schwab, and Vanguard let you buy T-bills on the secondary market or at auction. This is often easier than TreasuryDirect and gives you more flexibility to sell before maturity if needed.

T-Bills vs HYSA: The Full Comparison

Feature	T-Bills	HYSA
Yield (Feb 2026)	~3.4-3.7%	~3.5–4.5% APY
State/local tax	Exempt	Taxable
Federal tax	Taxable	Taxable
After-tax yield (CA, ~10% state tax)	~3.4-3.7% effective	~3.2-4.1% effective
After-tax yield (TX, no state tax)	~3.4-3.7%	~3.5-4.5%
Liquidity	Locked until maturity (or sell on secondary market)	Instant
Safety	US government backed	FDIC insured ($250K)
Minimum	$100	Usually $0
Best for	Known expenses in 1-12 months	Emergency fund, instant access

Key takeaway: In high-tax states (CA, NY, NJ), T-bills often win after tax. In no-tax states (TX, FL, WA, NV), HYSA usually wins because you keep the full rate.

A Real Example

Let's say you're in California with a 9.3% state income tax rate and you have $20,000 to park:

HYSA at 4.0% APY:

Gross interest: $800/year
State tax on interest: $800 x 9.3% = -$74.40
Net after state tax: $725.60 (effective 3.63%)

T-bill at 3.7%:

Gross interest: $740/year
State tax: $0 (exempt)
Net after state tax: $740 (effective 3.7%)

In this example, the T-bill actually wins after tax — $740 vs $725.60. And that's with one of the better HYSA rates. The point: always do the math for your specific situation. The higher your state tax rate, the more T-bills shine. I actually built a spreadsheet for this (yes, I'm that kind of person :P). It takes 5 minutes and can save you real money over a year.

I-Bonds: A Brief Overview

I-Bonds are inflation-adjusted savings bonds also from the US Treasury. Key facts:

Interest: Fixed rate + inflation rate (adjusted every 6 months)
Purchase limit: $10,000 per person per year (electronic)
Lock-up: Must hold for at least 1 year; penalty of 3 months' interest if sold before 5 years
Tax: State/local tax exempt (same as T-bills)

I-Bonds made headlines in 2022 when their rate hit 9.62% — and I, like many people, rushed to buy the maximum $10,000. Those were wild times! As of 2026, rates are more modest. They're worth considering as a small part of your savings strategy, but T-bills and HYSAs are more flexible for most expats.

Building a Simple Cash Strategy

Here's what I'd recommend for an expat who just arrived and is building their financial foundation:

Tier 1: Emergency Fund (3-6 months of expenses)

Where: HYSA Why: You need instant access. If you lose your job or have a medical emergency, you can't wait for a T-bill to mature.

Tier 2: Known Expenses in 3-12 Months

Where: T-bill ladder Why: If you know you'll need $5,000 for a car down payment in 6 months, buy a 26-week T-bill. You'll earn the state-tax-free yield and get the money back exactly when you need it.

T-bill ladder example: Buy a 4-week, 8-week, 13-week, and 26-week T-bill each month. As each matures, reinvest or use the cash. This gives you regular liquidity while earning T-bill rates.

Tier 3: Beyond 12 Months

Where: Consider investing (index funds, retirement accounts) Why: For money you won't need for years, cash savings accounts and T-bills lose to inflation over time. This is a bigger topic — but starting with a simple S&P 500 index fund through your employer's 401(k) or an IRA is a common first step.

For healthcare benefits that can also save you money, see my Healthcare Benefits Guide. And if you're still building credit, check out my Credit Building Guide.

Frequently Asked Questions

Can non-citizens buy Treasury bills?

Yes. Anyone with a US Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) and a US bank account can open a TreasuryDirect account and purchase T-bills. You don't need to be a US citizen. You can also buy through US brokerage accounts.

Is the TreasuryDirect website really that bad?

It's... functional. I'll be honest — the first time I used it, I thought I was on the wrong website. The design is from another era, and the user experience is clunky. But it works, and buying T-bills through it is straightforward once you get past the initial setup. I covered my experience in this review. Alternatively, buying through a brokerage (Fidelity, Schwab) is smoother.

What happens to my T-bills or HYSA if I leave the US?

T-bills: You can keep your TreasuryDirect account and hold T-bills even after leaving the US. However, you may not be able to purchase new ones depending on your residency status. Check with TreasuryDirect customer service.

HYSA: Most US banks allow you to keep your account open if you move abroad, but some may close accounts held by non-residents. Check your bank's policy before relocating.

For both: consult a tax professional about reporting obligations in your new country of residence.

Should I use T-bills or HYSA in a high-tax state?

Run the math. In states with high income tax (California, New York, New Jersey), the state tax exemption on T-bills can make them more attractive even at a slightly lower nominal rate. In states with no income tax (Texas, Florida, Washington, Nevada), HYSA is usually the better choice since you keep the full rate. See the comparison table and example above.

What about money market funds?

Money market funds (available through brokerages) are another option. Some invest primarily in Treasury securities, giving you the state tax exemption plus better liquidity than individual T-bills. They typically yield slightly less than direct T-bill purchases but offer the convenience of instant redemption. Worth exploring once you have a brokerage account.

Managing cash as an expat doesn't have to be complicated. Start with the HYSA (seriously, do it today if you haven't), then explore T-bills once you're comfortable. Small steps add up — and every dollar earning 3.5%+ instead of 0.01% is a dollar working harder for you.

Got questions about any of this? I'm always happy to geek out about savings optimization — feel free to reach out!

Chandler

Disclaimer: This content is for educational and entertainment purposes only. It does not constitute investment advice, financial planning guidance, or tax advice. Interest rates, yields, and tax laws change frequently. Always consult with a qualified financial advisor or tax professional before making investment or savings decisions. Past performance and current rates do not guarantee future results. Your individual circumstances may vary significantly from the examples discussed here.