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A certificate of deposit, known as a CD for short, can be a solid resource if you're looking for a safe place to store your savings. In many cases, CD rates are higher than traditional savings accounts and come with other benefits as well.
Yet it's important to understand that traditional CDs aren't the only option for growing your savings. Numerous types of CDs are available, with a variety of features depending on your particular savings objectives.
Below is an overview of 12 of the most popular types of CDs you might come across. If you're considering a CD to help reach your financial goals, it's a good idea to understand how these different options work, along with the pros and cons of each CD type, before you decide where to store your savings.
With a traditional certificate of deposit, you open the account by depositing a sum of money with a bank or credit union. Next, you agree not to withdraw your cash for a set amount of time, known as the CD's term. And in exchange, your money earns a fixed interest rate during that period.

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