Question: For the same week, at discover.com, the interest rate for one - year CDs is 4 . 5 0 % . Why are the rates

For the same week, at discover.com, the interest rate for one-year CDs is 4.50%. Why are the rates for 52-week Treasury bills higher than interest rates on savings aceunts?
Treasury bills are
liquid than savings accounts. Treasury bills are still very liquid, but you must find a
buyer who wants to purchase T-bills, which is not necessary for savings accounts. Therefore, T-bills must pay
interest rates to compensate for
liquidity. The opportunity cost of holding very liquid assets
like cash, checkable deposits, or savings is the interest you could make elsewhere if your assets were less liquid.

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