If i invets in a 90 day T-Bill, does my rate accrue to 1/2 of the actual coupon?

I have $5K to invest. I will absoulutely need this money in three months and i have to invest in a risk free security ( my school loans will be due in 4 mo). Im trying to choose between a 91 day CD or a 3 mo T-Bill. the CD is a local bank offering 3.25% APY. Yahoo quotes 90 day T-Bills at 4.7% which i can also buy through the bank. I%26#039;m leaning towards the T-Bill, but im not sure since its a 3 mo if the CR is half of the 4.7%

If i invets in a 90 day T-Bill, does my rate accrue to 1/2 of the actual coupon?

Both of those rates annualized. They should be directly comparable. So long as you hold the T-Bill to maturity then you will be guaranteed the 1.14~ interest rate over the months.

T-Bills do not have coupons becuase they are discount bonds.

Edit: Guy below me. I hope you don%26#039;t work in finance becuase he needs a risk free asset.

If i invets in a 90 day T-Bill, does my rate accrue to 1/2 of the actual coupon?

A Treasury Bill doesn%26#039;t have a coupon. It it sold at a discount and matures at face value. The gain is interest and is expressed as a Bond Equivalent Yield.

For $5,000 invested safely for three months, I would recommend a money market mutual fund from someone such as Vanguard (yielding 5.14% lately).