With inflation surging, elevated interest rates causing borrowing costs to remain higher and rising oil prices, millions of Americans are looking for ways to protect and grow their money right now. And a certificate of deposit (CD) account is often one of the better ways to accomplish both goals. This account comes with a competitive, fixed interest rate that will hold throughout any market instability. That will allow savers to precisely determine their interest earnings while simultaneously protecting their principal. And CD accounts are FDIC-insured up to $250,000 per account, adding another layer of much-needed financial protection right now. 

But CD accounts aren't perfect, either. To earn the big return on their money, savers will need to commit to leaving the funds untouched through the maturity date or risk having to pay an early withdrawal penalty to regain access. Understanding this, an 18-month CD account may be worth serious consideration now. Returns on this account can still be substantial, but the term won't be so lengthy as to prevent you from shifting your savings strategy next year. In the interim, however, you'll earn a high rate of return and protect your money from today's economic uncertainties. 

To better understand the value of an 18-month CD now, it helps to know the interest-earning potential it currently offers. Below, we'll crunch the numbers savers should know before getting started.

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How much interest can an 18-month CD account earn now?

Due to the fixed interest rate a CD account employs, it's easy to determine the exact interest earnings over time. Using a top rate of 4.15% that's available with this term now, here's how much interest an account can earn once it has reached its maturity date, calculated using 10 different deposit amounts and the assumption that no early withdrawal fees or penalties are levied against the account:

• $500 18-month CD at 4.15%: $31.45 upon maturity
• $1,000 18-month CD at 4.15%: $62.89 upon maturity
• $2,500 18-month CD at 4.15%: $157.23 upon maturity
• $5,000 18-month CD at 4.15%: $314.46 upon maturity
• $10,000 18-month CD at 4.15%: $628.91 upon maturity
• $15,000 18-month CD at 4.15%: $943.37 upon maturity
• $20,000 18-month CD at 4.15%: $1,257.83 upon maturity
• $25,000 18-month CD at 4.15%: $1,572.29 upon maturity
• $40,000 18-month CD at 4.15%: $2,515.66 upon maturity
• $50,000 18-month CD at 4.15%: $3,144.57 upon maturity

So savers can earn as little as $30, approximately, with an 18-month CD opened now, or around $3,000, depending on the amount deposited. And that interest will be guaranteed as long as the saver maintains the account and doesn't look to regain access prematurely. 

Before getting started, however, it's critical to crunch these returns in advance, as you'll need to be confident in your ability to keep the account frozen until the maturity date arrives. An early withdrawal penalty may negate all of the interest earned to that point.

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Don't leave any money in a traditional savings account now

While a CD, whether it be with an 18-month term or something shorter or longer, can be a viable home for your money now, it's equally important to understand which account type isn't best now. And, for most savers, that's a traditional savings account. This account type has an average rate of just 0.38% now, making CDs exponentially more profitable. 

But high-yield savings and money market accounts also have rates similar to the top CDs, and they won't require savers to sacrifice access to their funds, either. In other words, with so many viable alternatives to choose from, it doesn't make sense to lose out on the interest you can make elsewhere by keeping your funds in a traditional savings account right now.

The bottom line

An 18-month CD account can earn savers hundreds and even thousands of dollars if they make a deposit now. That interest will be guaranteed, reliable and easy to calculate. But savers will need to know their limits, too. A penalty here could negate all of the interest earned to that date, and depending on when the money is withdrawn, the CD rate landscape may not be as favorable. If you're unsure of your ability to maintain the account, high-yield savings and money market alternatives may be preferable, as long as you're keeping a minimal amount of funds in the low-rate traditional account.