Keep more of what your cash earns.

Tax-Aware Reserve is an alphaAI income strategy for cash you want to keep steady. We invest it in short-term, high-quality income funds chosen for how their income is taxed, so you keep more of what your cash earns after fees and taxes.

Short-term U.S. Treasury bills, top-rated (AAA) loan investments whose interest adjusts with short-term rates, and a fund built to earn Treasury-like returns as gains instead of income. You can see the exact funds in the app before you invest.

Interest from savings accounts and cash accounts is ordinary income. It's taxed every year at your highest federal rate, plus state tax, plus a 3.8% net investment income tax for high earners. In California's top brackets, that can take almost half of what you earn.

Part of the income comes from U.S. Treasury bills, which is free of state and local income tax. Part builds up as gains instead of income, so under current rules you're taxed only when you sell, at long-term capital gains rates if you've held for over a year. The rest is taxed as ordinary income.

We used each cash account's published base APY and the current yields of the funds in Tax-Aware Reserve, minus our standard advisory fee. Then we applied the federal, state, and net investment income tax rates shown for each example. Promotional rates are left out. The full method and dates are in the disclosures below.

No. Tax-Aware Reserve is an investment strategy, not a bank account or a cash management account. It is not FDIC-insured, and its value can go down. Your account is at Alpaca Securities, a member of SIPC. SIPC protects your securities if a brokerage fails, not against market losses.

Yes. The funds hold very short-term investments, so their prices tend to move very little. In market stress, the loan investments can dip for a while, even with top ratings. Nothing about this strategy is guaranteed.

Money you might need tomorrow belongs in an FDIC-insured bank account. Tax-Aware Reserve fits cash beyond that: money you want to keep steady but won't need this month. A sale takes one business day to settle, and the transfer to your bank takes a few more.

Tax-Aware Reserve is subject to alphaAI's standard fees. See pricing for details. The after-tax yields on this page already include our fee.

Your money is held in your own account at Alpaca Securities LLC, a registered broker-dealer and member of FINRA and SIPC. The account is in your name.

Yes. There is no lock-in. You can change your allocation, switch strategies, or withdraw. New deposits have a 7-business-day hold, a standard anti-money-laundering rule at alphaAI's brokerage partner.

Yes. An account can hold multiple strategies, each in its own sleeve. You choose how much goes to each, for example Tax-Aware Reserve next to a Core portfolio.