Earn more on your extra cash with zero state taxes.
A ladder of US Treasuries can help you earn more — and keep more — than most savings accounts and some CDs. Since Treasuries are exempt from state and local income taxes, you can take home more interest on money you may be saving for future expenses. Just choose how long you want to invest, when you want your funds back — and we’ll handle the rest.
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Curious what $0 in state income taxes could mean for you?
You’d have to earn...
0.00%
in fully taxed interest
to match
0.00%
in Treasury interest
State of residence
Annual income
$150,000
Filing status
Wait, what’s “fully taxed interest?”
By “fully taxed interest” we mean interest that’s taxable at both the state and federal levels. Interest from savings accounts, CDs, and corporate bonds are taxed as ordinary income — all federal and state taxes apply. Treasuries, on the other hand, are exempt from state income taxes.
This interactive analysis tool presents hypothetical outcomes intended for informational purposes only. Average yield estimates assume each ladder rung holds equal weights and all Treasuries are held to maturity. Tax equivalent yield is calculated using federal and state marginal income tax rates based on user inputs. Both figures are net of a 0.25% annual advisory fee. Nothing in this communication should be construed as tax advice, a solicitation or offer, or recommendation, to buy or sell any security. All investing involves risk, including the possible loss of money you invest, and past performance does not guarantee future performance. Please see our Full Disclosure for important details.
Meet the Automated Bond Ladder.
A bond ladder — a portfolio of bonds that mature at different times — locks in current yields while keeping your funds flexible. Whether you’re saving for an important expense or waiting to invest in the stock market, the Automated Bond Ladder offers a steady yield on your extra cash — without limiting access to your funds.
Locked-in rates
The Automated Bond Ladder is designed to weather changing interest rates by spreading your investment across US Treasuries with different maturities. Locking in rates can mean securing current yields for months or years to come depending on your goals.
Very low risk
US Treasuries are backed by the full faith and credit of the US Government, which means there’s very little risk of default.
Easy access to funds
Access your funds with no penalties and no hassles. Choose to automatically withdraw monthly interest and principal, set a target withdrawal date, or keep reinvesting into new Treasuries.
Keep your savings up. Even if interest rates drop.
Although the federal funds rate is expected to decline* regularly over the next two years, you can still lock in current rates by investing in a ladder of Treasuries today. By holding multiple Treasuries of different maturities, you’ll earn a steady yield for your chosen duration.
Get started
To build your own bond ladder, you’ll need patience and plenty of research. Or just use our app.
Choose how long you want to invest (from three months to six years) and we’ll show you your estimated average yield. We’ll compare hundreds of Treasuries to prioritize high coupon payments and liquidity, and keep your ladder balanced as your rungs mature.
Get startedAll investing involves risk.With Treasuries, that’s not very risky.
Savings account
For your daily expenses and your emergency fund.
US Treasuries
Backed by the full faith and credit of the US government, Treasuries offer a steady rate and are considered among the safest investments in the world.
Index funds
The time-tested approach designed to earn you greater returns over the long term, with more exposure to risk.
Individual stocks
Owning single stocks provides an opportunity to invest in companies you believe in, but can expose you to market volatility and company-specific risks.
Where should you save your extra cash? See your options.
Automated Bond Ladder
Savings account
Certificate of Deposit
Portfolio of corporate bonds
Yield
4.14% – 4.15%
Range of current yields on Treasuries in our 3-month ladder, after Fee; yields vary over time
0.43% APY
National avg. per FDIC.gov as of December 16, 2024
Variable depending on duration
Variable depending on duration and issuer
Risk of losing principal
Very low if held to maturity:
Treasuries are backed by the full faith and credit of the US government
Very low: Subject to FDIC insurance limits
Very low: Subject to FDIC insurance limits
Medium: Variable based on issuers credit rating
Insurance
SIPC insured up to $500K
FDIC insured up to $250K
Typically FDIC insured up to $250K
Typically SIPC insured when held in a brokerage account
Taxes
Exempt from state and local income taxes; federal income taxes apply
Federal, state, and (potentially) local income taxes apply
Federal, state, and (potentially) local income taxes apply
Federal, state, and (potentially) local income taxes apply
Liquidity
No fees for early withdrawals; selling before maturity can result in reduced yield
Fully liquid
Fees or penalties may apply for early withdrawals
No fees for early withdrawals; selling before maturity can result in reduced yield
Fees
Annual 0.25% advisory fee
No advisory fee for 6 months on your first Automated Bond Ladder. Terms apply.
Service and maintenance fees may apply
No fees
Management fees and other fees may apply
Wealthfrontnow
Your bond ladder’s first rung matured. You earned $114.54 in interest.
Ready to start earning? Ladder up.
Wealthfrontnow
Your bond ladder’s first rung matured. You earned $114.54 in interest.
Pay $0 in state income taxes
Very low risk (Treasuries are backed by the US government)
Reinvest or withdraw funds with no penalties or hassles
Selling before maturity can result in reduced yield and market risk
A good investment starts with asking good questions.
Still deciding? Read our Automated Bond Ladder Whitepaper or learn more at our help center.
