STRC vs Savings Account: Which Earns You More?
How does STRC's 11.5% yield compare to a typical high-yield savings account at 4%? Here are the numbers.
HYSA and CD rates as of Mar 13, 2026. Treasury yield and S&P 500 dividend yield update automatically. Sources
HYSA (4%)
$166.67/mo
STRC (11.5%)
$479.17/mo
Difference
+$312.50/mo
What $50,000 earns you per month
+$312.50/month more with STRC
Monthly Income Comparison
| Investment | HYSA (4%) | STRC (11.5%) | Difference |
|---|---|---|---|
| $10,000.00 | $33.33/mo | $95.83/mo | +$62.50/mo |
| $25,000.00 | $83.33/mo | $239.58/mo | +$156.25/mo |
| $50,000.00 | $166.67/mo | $479.17/mo | +$312.50/mo |
| $100,000.00 | $333.33/mo | $958.33/mo | +$625.00/mo |
| $250,000.00 | $833.33/mo | $2,395.83/mo | +$1,562.50/mo |
Feature Comparison
| Feature | HYSA | STRC |
|---|---|---|
| Current Yield | 4% | 11.5% |
| Payment Frequency | Monthly | Monthly |
| FDIC Insured | Yes (up to $250K) | No |
| Principal Protection | Yes | No |
| Liquidity | Instant | Sell during market hours |
| Minimum Investment | Varies ($0-$1) | 1 share (~$100) |
| Tax Treatment | Ordinary income | May qualify as return of capital |
| Rate Type | Variable | Variable (monthly) |
Savings Account Pros
- FDIC insured up to $250,000
- Zero risk of principal loss
- Instant access to your money
- Familiar and simple to use
Savings Account Cons
- Yields have been declining as rates fall
- Interest taxed as ordinary income
- Returns may not keep pace with inflation
STRC Pros
- Significantly higher yield (11.5% vs 4%)
- Monthly cash dividends
- Potential for favorable tax treatment (return of capital)
- Easy to buy through any brokerage
STRC Cons
- Not FDIC insured - principal can fluctuate
- Dividend rate can change monthly
- Tied to Strategy's bitcoin strategy
- Less liquidity than a savings account
- Shorter track record
Understanding the risk tradeoff
A savings account protects your principal. No matter what happens in the market, your $100,000 stays $100,000 (up to the FDIC limit). That guarantee comes at a cost: at current rates, a high-yield savings account yields around 4%. With inflation running at roughly 3.5%, the real return on your savings is barely positive. Over a decade, the dollars are still there, but they buy meaningfully less.
STRC takes the opposite side of that tradeoff. At 11.5%, it significantly outpaces inflation, but your principal is not guaranteed. The share price can dip below what you paid, and the dividend rate adjusts monthly. What backs STRC is not a federal insurance program but Strategy's balance sheet: a $2.25 billion USD reserve and approximately $55 billion in bitcoin holdings. Those are substantial buffers, but they are not the same thing as a government guarantee.
The core question is which risk you are more comfortable carrying: the quiet erosion of purchasing power over time, or the possibility of short-term principal fluctuation in exchange for higher income. Neither answer is wrong. For a deeper look at STRC's structural buffers, see How Durable is STRC?
Who Is Each Best For?
Stick with a savings account if...
- You need FDIC insurance and guaranteed principal
- This is your emergency fund
- You need instant access at all times
- You are not comfortable with any principal risk
Consider STRC if...
- You are looking for higher monthly income
- You understand and accept the risks of preferred stock
- This is money you can invest for the medium to long term
- You want to diversify your income sources beyond bank products