Certificates of deposit and high-yield savings accounts are offering interest rates multiple times higher than those available on traditional savings accounts, giving U.S. consumers options to earn returns that more closely keep pace with inflation. Six-month certificates of deposit are paying rates around 4.15%, while the most competitive high-yield savings accounts are offering approximately 4% — compared with less than 0.40% on a traditional savings account.

The gap between these products and traditional savings accounts comes as inflation stands at 3.3%, more than a full percentage point above the Federal Reserve's target rate of 2%. At current traditional savings account rates of under 0.40%, depositors in those accounts are earning returns well below the rate of inflation. Both certificates of deposit and high-yield savings accounts offer rates that exceed the current inflation rate, though the margin is narrow.

The two higher-yielding options differ in how they handle depositor access and rate structures. A certificate of deposit locks deposited funds until the product reaches maturity. Depositors who withdraw funds before that date are subject to an early withdrawal fee. In exchange for that restricted access, certificate of deposit interest rates are fixed for the duration of the term, providing a guaranteed return. On some terms, certificate of deposit rates exceed those available on high-yield savings accounts.

High-yield savings accounts, by contrast, allow depositors to access their funds without early withdrawal fees or maturity restrictions. However, the interest rates on high-yield savings accounts are variable, meaning they can change over time. Traditional savings account rates are also variable and subject to change.

The rate differences between the products present a trade-off between flexibility and rate certainty. A depositor choosing a six-month certificate of deposit at around 4.15% would lock in that rate for the term, while a depositor in a high-yield savings account earning approximately 4% would retain the ability to withdraw funds freely but face the possibility that the rate could rise or fall during the same period.