Today the 5-year Treasury Note hit a yield of 4.49% (see: https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treas... ). Depending on your taxable income and state of residence, the 5-year Treasury Note could be an item you want to monitor.
For example, according to the Taxable-Equivalent Yield Calculator available at Fidelity, if your principle state of residence is California, and your estimated taxable income is $59,000, and your federal tax filing status is single, the 5-year Treasury Note at 4.49% has a tax-equivalent yield of a 5-year CD at 5.07%. Changing the estimated taxable income to $118,000 and the federal tax filing status to married filing jointly produces the same tax-equivalent yield of a 5.07%.
The results listed above neglect local income tax and assume that the Treasury Note and the comparable CD are held in a taxable deposit account. The Taxable-Equivalent Yield Calculator available at Fidelity (https://digital.fidelity.com/prgw/digital/taxyieldcalc/) neglects NIIT (Net Investment Interest Tax), neglects AMT (Alternative Minimum Tax), and expresses yield as the effective annual rate of return in percent.
