How does a CD work?

With inflation still present and stock market returns unpredictable, many Americans find themselves looking for reliable ways to protect and grow their money. 

While interest rate hikes courtesy of the Federal Reserve have hurt homebuyers and those looking to refinance, the action has helped grow the appeal of high-yield savings and certificates of deposit (CD) accounts. Both types will secure account holders’ money while offering favorable interest rates to grow it over time.

For those looking for a CD, it first helps to understand how this sort of account…