Where can I earn 6% on my savings today?

In a normal economic landscape, finding ways to earn a substantial return on your savings can be a challenging endeavor. When rates are low, traditional savings accounts and other interest-bearing accounts will typically offer modest APYs that barely keep pace with inflation. And, for most savers, a modest 0.46% return — which is the average rate offered by a regular savings account today — simply won't cut it.

But today's economic landscape is anything but normal. Persistent inflation has led the Federal Reserve to hike rates nearly 12 times in the last 18 months — and, in turn, everything from mortgage rates to credit card interest rates has experienced big jumps compared to this time last year. 

And, so have the rates on certain interest-bearing accounts, which is great news for anyone who's interested in earning a hefty rate of return on their money. In fact, the current rate environment has made it possible to attain an APY of 6% or higher — and you can do it without delving into higher-risk investments. 

Start exploring your top savings options here.

Where can I earn 6% on my savings today?

There are a couple of ways to potentially earn a 6% return on your savings today:

 A CD account

Certificates of deposit, commonly known as CDs, are a tried-and-true method for securing your savings while earning a competitive return. By locking in your money for a fixed term, often ranging from several months to several years, you can enjoy more attractive interest rates than those found in standard savings accounts.

And, while most CDs currently offer rates in the 4.5% to 5.5% range, there are a few CDs offering APYs of 6% or more on your money right now.  In fact, some CDs are offering rates as high as 7% or more currently — presenting a unique opportunity to earn a big rate of return on your savings.

But if you're planning to take advantage of today's high CD rates, you may want to do it quickly. There is no guarantee that the rates on CDs will stay this high over the long term, and if you wait, you could miss out on not just an excellent APY, but the other benefits a CD offers, too, including: 

• Safety: CDs are insured up to $250,000 per account by the Federal Deposit Insurance Corporation (FDIC), providing peace of mind.
• Predictable returns: The interest rate is fixed for the duration of the CD, ensuring a stable and predictable return on your investment.
• Diverse term options: You can tailor your CD investments to your financial goals, with a choice of terms that suit your time horizon.

Find out how today's top CD rates could benefit you here.

A high-yield savings account

High-yield savings accounts are a modern solution to the age-old problem of earning more on your savings. These accounts are typically offered by online banks and financial institutions, and they provide a way to access interest rates that surpass those of traditional savings accounts. While achieving a 6% return on a high-yield savings account may still be a stretch in a normal economy, there are a few accounts offering rates that high, or higher, right now.

It's worth noting, though, that, unlike CDs, the rates on high-yield savings accounts are variable, so if you want to start earning 6% or more on the money in your savings, it would be wise to open an account before rates decline — which could happen at some point in the future.

In addition to an APY of 6% or higher, a high-yield savings account can offer the following benefits:

• Liquidity: High-yield savings accounts allow you to maintain access to your funds without the same restrictions imposed by CDs.
• Safety: Just like regular savings accounts, high-yield savings accounts are FDIC-insured up to $250,000 per account.
• Ease of management: Accessing your account, managing your funds, and transferring money can be done conveniently online.

To find high-yield savings accounts with the best returns, conduct research to compare the interest rates, fees and terms and conditions offered by different banks — and online banks in particular. Additionally, consider whether the bank provides the features and services that align with your specific financial needs to ensure it's right for you.

The bottom line

While the quest for a 6% return on your savings today may require some effort, CDs and high-yield savings accounts are two viable options to consider. These accounts offer competitive interest rates, safety through FDIC insurance and ease of management. By assessing your financial goals and time horizon, you can make a well-informed decision about the best path to take to maximize your savings. And remember that staying informed about market conditions and being flexible with your investment strategies will help you get closer to your goal of achieving a 6% or higher return on your savings.