When you buy a Treasury bill, you can do it for as little as 4 weeks or go for 8 weeks. You can auto-renew and, if you do, change your mind to stop it. They pay more than the banks and credit unions.
Understand how they do it because it's a little confusing. If you buy $1,000 T-bill, then you don't pay $1,000 but $1,000 minus the interest rate but you get $1,000 back at the end. If you renew, each time it renews, they send you a check with the interest. If you have direct deposit set up, then they deposit that interest in your bank account each time it renews.
Remember, if a bank or C.U. fails, the government will back your savings but you may lose the interest and it could take some time to get your money. On the other hand, if the government fails, the money is lost no matter if you have it in a bank or C.U., or in Treasuries as they all depend on government money so why go through a third party that skims off some of the interest so they can make money, too?
Treasury Direct
Recent rates have been 5.49%!
Note that treasury bills and bonds are exempt from state (but not federal) taxes.
Note, if you want to go longer term (like CDs are), look at Treasury Bonds, not bills. Same site.
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