Updated October 27, 2026 from live rates

Where to keep cash in Montana

Montana’s top income tax rate is 5.65%. At that rate and 37% federal, a 1-year Treasury bill at 4.50% keeps the most: about $7,088 a year on $250,000 after tax, versus $14 in a default brokerage sweep. A CD or savings account would need to pay 4.94% to keep as much as a 1-year Treasury bill at 4.50%.

Option

Rate

Kept a year on $250,000

1-year Treasury bill

4.50%

$7,088

CFG Bank 1-year CD

4.65%

$6,667

3-month Treasury bill

4.22%

$6,647

Treasury-only money fund

3.79%

$5,969

Marcus by Goldman Sachs 11-month No-Penalty CD

4.00%

$5,735

Wealthfront Cash Account

3.55%

$5,090

Municipal money fund (not your state's)

1.45%

$3,420

Merrill Edge

0.01%

$14

Why Treasuries win in Montana

Savings accounts, CDs and most money funds pay interest that Montana taxes at up to 5.65%. Treasury bills don’t. So a Treasury bill paying 4.50% keeps what a fully taxable account paying 4.94% would, for a top-bracket Montana resident. Today the best 1-year CD we track pays 4.65% and the best savings account 3.55%.

Municipal money funds in Montana

We don’t list a money fund that holds only Montana municipal debt. A national municipal fund is free of federal tax but generally taxed by Montana; for a top-bracket resident it needs at least 3.00% to beat a 1-year Treasury bill.

Montana taxes on cash, in brief

Top income tax rate: 5.65%. Your own rate may be lower; change it above.
Interest on U.S. Treasury bills, notes and bonds: exempt from state and local income tax, taxed federally.
Savings accounts, CDs and prime or government money funds: taxed by Montana, except the share of a fund’s income that comes from U.S. Treasuries.

Questions

Is Treasury bill interest taxed in Montana?

No. Interest on U.S. Treasury bills, notes and bonds is exempt from state and local income tax under federal law, so Montana doesn’t tax it. It is still subject to federal income tax. Interest from savings accounts and CDs is taxed by Montana at up to 5.65%.

Where should I keep cash in Montana?

At Montana’s top rate and 37% federal, a 1-year Treasury bill keeps the most after tax today (4.50%). The answer depends on your brackets; the calculator on this page updates for yours.

What rate does a CD need to beat Treasury bills in Montana?

At Montana’s top rate and 37% federal, a CD or savings account needs at least 4.94% to keep as much as a 1-year Treasury bill paying 4.50%.

Rates: each provider’s own page and the U.S. Treasury, October 27, 2026. State rates: Tax Foundation, 2026 (top single-filer rate; local taxes not included). General information, not tax advice. Other states →