Smart Yield is our automated cash management product that automatically allocates your funds to strategic money market funds invested in U.S. treasuries, government securities, or municipal bonds. Our intelligent system analyzes your tax situation to select investments with potential federal, state, and local tax advantages, aiming to deliver competitive after-tax yields compared to traditional savings accounts. Treasury funds typically offer state tax exemptions while municipal funds may provide federal tax advantages, depending on fund composition and your situation. By targeting these opportunities based on your specific circumstances, Smart Yield seeks to maximize your after-tax returns while maintaining liquidity for your cash needs.
Carry Smart Yield
Put your cash to work with Smart Yield
Smart Yield is our alternative to a high-yield savings account—automatically allocate your cash to strategic money market funds designed to help you keep more of what you earn, potentially with zero federal, state, or local taxes¹
Yields shown as of October 6, 2025 represent the highest 7-Day yields currently available among our options. 5.15%³ is the VYFXX tax-equivalent yield for a New York resident in the top marginal bracket. 4.06%² is the 7-Day SEC Yield of Vanguard Federal Money Market Fund (VMFXX). Comparative bank APYs—Citibank Basic Savings 0.03% and Ally Bank Online Savings 3.40%⁴—reflect rates as of October 6, 2025. Smart Yield holdings are not FDIC-insured and may lose value. Yields fluctuate daily, and are not guaranteed; investment minimums may apply. All displayed yields are net of fund expenses but exclude Carry’s membership fee.
Designed to optimize your after-tax cash yield³
Smart Yield is an investment product⁵ designed to find the highest tax-equivalent yield for you in money market funds, meaning the highest potential return once your personal taxes are factored in.
It evaluates a curated list of money market funds—including those backed by U.S. treasuries, government securities, and municipal bonds—and automatically allocates your cash to the one that may earn you the most after taxes, based on factors like your income, state, and investment amount.
Subject to 0.20% advisory fee, waived until January 1, 2026.
Earnings may be exempt from federal, state, or local taxes
Unlike most other investment accounts, Smart Yield earnings may be exempt from federal, state, or even local taxes. Depending on your state of residence, income, and filing status, you could qualify for tax-exempt income. Smart Yield automatically handles the calculations, aiming to make sure you’re in the most tax-efficient fund based on your personal situation.
Smarter reallocations, on autopilot
We scan our funds⁶ daily to keep your cash in the money market fund with the highest potential tax-equivalent yield, based on your tax situation and market conditions. If an opportunity for potential improvement arises, Smart Yield will automatically move your funds—so your money does the work, not you.
Cash that stays accessible⁷—and keeps working
Dividends earned through Smart Yield are automatically reinvested, allowing your cash to compound and grow over time. Our curated funds are invested in short-term, high quality assets designed to preserve capital and maintain liquidity. This means your cash should be readily available when you need it, and without redemption fees.
Investments involve risk and are not FDIC insured.
Access Smart Yield from any account
Access Smart Yield across all your Carry accounts, including Solo 401k, Roth IRA, Traditional IRA or Taxable Brokerage. Optimize your cash across your entire investment portfolio.
Choose your Carry membership
Core
$29 /month
or $299/year
Solo 401k, IRAs, and Taxable Brokerage accounts
Invest in equities including stocks, ETFs, and mutual funds
Access to managed investments including Smart Yield and Roboadvisor
Add on tax filing, tax planning, bookkeeping, and financial planning for an additional fee
Full access to 20+ courses
Pro
$49 /month
or $499/year
Everything on Core, plus:
Invest in Crypto in your Traditional or Roth IRA
Access to Alternative investments in your Solo 401k, Roth IRA, or Traditional IRA
Advanced Solo 401k support including EACA credit filing
Questions before joining?
What exactly is Smart Yield?
Are there any fees associated with Smart Yield?
Carry Advisors charges a 0.20% annual advisory fee on your Smart Yield assets (waived until January 1, 2026), calculated daily and withdrawn monthly by liquidating a portion of your investment. Additionally, each money market fund has their own operating expenses (expense ratios) that are deducted directly from the fund’s yield. These fund expenses vary by fund and are factored into the yields we display.
How quickly can I access my funds?
While Smart Yield funds are liquid, there are timing considerations. Money market funds follow standard brokerage settlement processes, typically taking 1-2 business days to settle. Once settled, funds take an additional 3-5 days to arrive in your Carry cash account. The total process from withdrawal request to available cash may take 4-7 business days, so plan ahead if you need funds for near-term expenses.
How often does Smart Yield move my funds?
Our algorithm continuously monitors your Smart Yield allocation based on current yields, your tax situation, and investment amount. We only move your funds when there’s a material improvement in tax-equivalent yield that would meaningfully benefit you. We carefully consider factors like time out of market and transaction costs to minimize unnecessary trading. This balanced approach maximizes your potential yield while avoiding excessive movement. When trades are necessary, they follow standard money market fund settlement procedures and may take several days to clear.
How does Smart Yield determine my tax bracket?
Smart Yield uses the tax inputs you provide—including your state of residence, adjusted gross income, filing status, and household income if filing jointly. Based on this information, the algorithm estimates your federal and state tax brackets to optimize your fund allocation. For the most accurate results, keep your tax inputs current. Note that Smart Yield doesn’t consider all tax factors like deductions, credits, or local taxes, so consult a qualified tax professional for comprehensive tax guidance.
How does Smart Yield work with retirement accounts?
Smart Yield works differently with IRA and Solo 401k retirement accounts due to their tax-advantaged nature. Since these accounts already have special tax treatment, our algorithm bypasses tax optimization and instead focuses on selecting the money market fund with the highest pre-tax yield based on your investment amount. This approach optimizes your potential returns while recognizing the distinct tax characteristics of retirement accounts.
Can I use Smart Yield if I live in a state without state income tax?
Yes, while the tax optimization benefits may be most noticeable for residents of states with income taxes, Smart Yield can remain valuable even if you live in a state without income tax. For residents of states without income tax, our algorithm primarily focuses on selecting the money market fund with the optimal tax yield factoring in your federal tax obligations. You still benefit from professional management and automated fund selection to help optimize your potential returns.
How do I know if I qualify for tax-free earnings?
Your eligibility depends on several factors including your state of residence and the money market fund composition. Treasury-backed funds may provide income exempt from state and local taxes, while certain municipal funds may be exempt from federal taxes. Our algorithm evaluates these factors based on your tax inputs, but tax rules are complex and vary by state.
For example, some states (California, New York, Connecticut) require funds to hold at least 50% in U.S. obligations to qualify for state tax exemptions. For definitive guidance on your specific situation, consult a qualified tax professional.
What types of funds does Smart Yield invest in?
Smart Yield invests exclusively in money market funds that primarily hold high-quality, short-term securities such as U.S. Treasury securities, government securities, municipal securities, and repurchase agreements.
Our current options include funds from Vanguard, Schwab, and other notable financial institutions. All funds are selected based on criteria including fund size, expense ratios, track record, and credit quality. The specific fund selection is limited to those available through our custodian, DriveWealth LLC, and may change over time as we evaluate new options.
Will Smart Yield reinvest my dividends?
Yes, Smart Yield is designed to automatically reinvest all dividend earnings back into the same money market fund where your investment is held. This happens without any action required from you, allowing your earnings to potentially compound over time. You can view both pending earnings and reinvested dividends on your Smart Yield account page.
How secure is my money with Smart Yield?
Your Smart Yield investments are held with DriveWealth LLC, a registered broker-dealer and FINRA/SIPC member. While money market funds seek to maintain a stable $1.00 per share price, they are investment securities, not bank deposits, and are not FDIC insured. However, your account is protected by SIPC insurance up to $500,000 (including $250,000 for cash) in the event of broker failure. SIPC insurance does not protect against market losses. Money market funds invest in high-quality, liquid securities to help maintain stability, but all investments involve some risk.
Smart Yield seeks low-risk income by allocating cash to screened U.S. Treasury, agency, and municipal money-market funds. Consider your financial situation, risk tolerance, and goals before investing.
- State & Local Tax Treatment: “Zero federal or state taxes” assumes investment in municipal money-market funds exempt from federal and, for in-state residents, state taxes. Actual exemptions vary by fund holdings, residency, and the Alternative Minimum Tax (AMT). Consult a tax adviser.
- Yield Information: Yields exclude Carry Advisors’ 0.20% advisory fee (waived until January 1, 2026) and Vibes membership fees, change daily, and are not guaranteed.
- After-tax Estimates Only. Calculations are based on provided tax rates, assuming federal and state exemptions for government interest, excluding AMT, local taxes, deductions, and credits. Actual results vary; Carry Advisors does not offer tax advice.
- Comparative bank rates. Traditional savings (0.03 %) reflects Citibank Basic Savings’ standard APY; high‑yield savings (3.60 %) reflects Ally Bank Online Savings APY—each as of August 25, 2025, before taxes or account fees and subject to change without notice.
- Not FDIC Insured. Smart Yield invests in money-market mutual funds. Shares are not bank deposits, not FDIC-insured, not guaranteed, and may lose value. Carry Advisors LLC and affiliates are investment firms, not banks or FDIC members.
- Tax-Equivalent Yield (TEY) Explained. TEY translates a Fund’s current 7‑Day SEC Yield into its fully taxable equivalent using the tax rates you supply, assuming rates and yields stay constant.
- Cash Access Limits. Money-market funds typically settle T+1/T+2 and may have redemption restrictions during market stress, making withdrawals slower than traditional bank accounts.
- Smart Yield Fees & Minimums. Carry Advisors charges 0.20% annually (waived until January 1, 2026). Vibes membership required (Core: $299/yr; Pro: $499/yr). Minimum initial investment is $1; however, certain underlying funds have higher minimum investment requirements (up to $3,000). If these minimums are not met, clients will be allocated to the next-best available fund, potentially lowering yield.
- Conflicts & SIPC Protection. Smart Yield accounts are carried by DriveWealth LLC, member FINRA/SIPC. SIPC protects up to $500,000 (cash sub-limit $250,000) against broker insolvency, not market losses. Carry Advisors LLC and The Vibes Company Inc. share common ownership, with potential conflicts addressed through policies.
Vanguard and Fidelity logos and trademarks are the property of their respective owners and are used for identification purposes only. Carry Advisors is not affiliated with, sponsored by, or endorsed by Vanguard Group, Inc. or Fidelity Investments. Fund names, symbols, and identifiers are displayed for informational purposes only.
For further detail, please read the full Smart Yield Risks & Disclosures.