How does a Bank CD Work?

How does a bank CD work is you loaning the bank your money over a specified time, usually 6 months to 5 years, and a set interest rate, which could be 1 1/2% to 4 1/2% depending on the bank. The only bad thing with CD’s are that the interest rates on most CD’s are usually not that great, but the principle is under no risk so that’s a good thing.