Risk-Free Ceiling: 26-week U.S. Treasury Bills are yielding ≈5.4 % (May 2025 auction). You can buy them through global brokers like Interactive Brokers with no U.S. withholding tax for non-resident aliens. Barron’sInteractive Brokers
FDIC-Insured 5 %+ Cash: Community banks such as Ponce Bank pay up to 5.26 % APY on money-market accounts opened online via the Raisin marketplace; passports + ITIN accepted. AInvest
Brokered Money-Market ETFs: Ultra-short T-bill ETFs (e.g., SGOV, BIL) yield 5.0 – 5.2 % and trade like stocks in 30 + countries. Barron’s
Crypto-Based Cash: Platforms such as Kraken or Crypto.com pay 5 – 6 % on USD stablecoins (USDC); principal not FDIC-insured—treat as medium-to-high risk.
1 | Why Non-Residents Struggle to Capture U.S. Yields
U.S. online banks dominate the 4 – 5 % APY range, yet most require a Social Security Number or U.S. address. To pierce that wall we re-route through:
- Global brokers (no bank residency requirement).
- Marketplace on-ramps (Raisin, SaveBetter) that handle KYC for select community banks.
- Tokenized dollars (USDC/USDT)—borderless but risk-tier 3.
2 | Safety First: Treasury Bills via Global Brokers
| Metric | 4-Week | 13-Week | 26-Week | Source |
|---|---|---|---|---|
| Auction yield (May 6 2025) | 4.92 % | 5.18 % | 5.41 % | U.S. Treasury data U.S. Department of the Treasury |
- How to buy: IBKR > Type “US-T” > select maturity > place GTC order. Minimum face $1 000. Interactive Brokers
- Tax edge: 0 % U.S. withholding for non-resident aliens; exempt from state/local tax.
- Liquidity: Sell in secondary market any business day.
Drawback: Funds are locked until maturity unless you sell on the market (price may fluctuate).
3 | 5 % Cash with FDIC Cover—Marketplace Accounts
| Provider (via Raisin) | Product | APY | Min. Deposit | Residency Path |
|---|---|---|---|---|
| Ponce Bank | Money-Market | 5.26 % | $1 500 | Passport + ITIN |
| Liberty Savings Bank | High-Yield Savings | 5.12 % | $100 | Passport + ITIN |
| BrioDirect | High-Yield Savings | 5.05 % | $500 | Passport + ITIN |
- Pros: FDIC up to $250 k, daily liquidity.
- Cons: Need an ITIN (apply from abroad via IRS Form W-7); ACH transfer only.
4 | Brokered Money-Market & Ultra-Short ETFs
| Ticker | Yield to Maturity | Expense | Domicile | Non-Resident Access |
|---|---|---|---|---|
| SGOV | 5.12 % | 0.07 % | US | Yes (IBKR, Saxo) |
| BIL | 5.05 % | 0.14 % | US | Yes |
| USDXX (Circle Reserve) | 5.09 % | 0.00 % | US 2a-7 fund | Indirect via USDC |
- ETF dividends paid monthly; 30 % U.S. withholding unless you file W-8BEN (drops to 0 % on T-bill income).
- Highly liquid—same-day settlement.
5 | Stablecoin Savings (USDC/USDT) — 5 – 6 % with Caveats
| Platform | APY | Lock-Up | Custody Risk |
|---|---|---|---|
| Kraken USDC Rewards | 5.5 % | None | Exchange default risk 크라켄 |
| Crypto.com Earn | 6 % (3-mo lock) | 3 mo | Exchange + counterparty ledn.io |
| Coinbase USDC Hold | 4.1 % | None | Tier-1 reserve, still CeFi 코인베이스 |
Rule of thumb: Keep < 20 % of cash reserve in CeFi yield buckets; diversify exchanges.
6 | Decision Matrix
| Need | Best Tool | Net Yield (post-withholding) | Risk Tier |
|---|---|---|---|
| Maximum safety | 26-week T-bill | 5.4 % | Low |
| FDIC + liquidity | Raisin/Ponce MMA | 5.26 % | Low |
| Daily tradeable | SGOV ETF | 5.1 % | Low–Mod |
| Higher upside | Kraken USDC | 5.5 % | Mod–High |
7 | Tax & Practical Notes for Korea-Based Readers
- K-tax residents owe global income tax; U.S. T-bill interest remains U.S.-tax-free but reportable in Korea.
- Korea’s Financial Company Reporting Act thresholds (KRW 1 b+) apply to offshore balances—file Form 사전보고 if exceeded.
- Use Wise or Revolut to fund U.S. brokers cheaply (< 0.5 %).
8 | Sample Allocation Playbook (USD 100 k Cash Reserve)
| Slice | Instrument | Yield | Annual Interest |
|---|---|---|---|
| 40 % | 26-wk T-bill ladder | 5.4 % | $2 160 |
| 30 % | Ponce MMA | 5.26 % | $1 578 |
| 20 % | SGOV ETF | 5.1 % | $1 020 |
| 10 % | Kraken USDC | 5.5 % | $550 |
| Total | Blended 5.33 % | — | $5 308 |
9 | Execution Checklist (45 minutes)
- Open Interactive Brokers—upload passport, proof of address.
- File W-8BEN (digital) to zero U.S. withholding.
- Open Raisin US account; apply for ITIN if not yet issued (4–8 weeks).
- Fund via Wise USD transfer to IBKR & Raisin.
- Create T-bill ladder (4, 13, 26 weeks).
- Park residual cash in MMA; set auto-sweep to SGOV inside IBKR.
- Optional: Allocate ≤ 15 % to USDC rewards for upside.
- Calendar-remind renewals and ITIN re-validation (every 3 years).
Bottom Line
Even as Fed cuts loom, carefully layered Treasury-linked, FDIC-insured, and selectively tokenized USD buckets can still net > 5 %—all without a U.S. residence. Follow the playbook above to keep your nomad cash compounding, not languishing.