There are many different types of savings accounts and they all are slightly different. One savings account that you can open is a certificate of deposit, also known as a CD. This savings account has a fixed interest rate for a fixed amount of time, also known as the term length. There is also a fixed date of withdrawal for this account, also called the maturity date of the CD. The average interest rate of a certificate of deposit is 0.27%, while the average interest rate of a traditional savings account is 0.06%.
When you open up a certificate of deposit account you can choose how long you want your term length to be. You can do it for a few months or many years. The longer your term length is, the higher your interest rate will be. The bank is able to give you a higher rate because you are agreeing to keep your money in this account for a longer period of time. You will not be able to withdraw from this account easily until your maturity date. Once that date arrives you can withdraw your money or extend the term length. You may want to use this account if you want to keep your money in a low-risk, safe place without needing immediate access to your money.