The traditional certificate of deposit remains the most popular type of CD, but a growing number of financial institutions are offering a variety of nontraditional CDs that have an element of flexibility. 

If you're willing to sacrifice some yield, you can find CD options that might better suit your financial needs.

Deposit a fixed amount of money for a specific term and receive a predetermined interest rate. 

You have the option of cashing out at the end of the term, or rolling over the CD for another term. 

Most institutions allow you to add additional funds during the term or when rolling over. 

Penalties for early withdrawal can be quite stiff and will cause you to lose interest and, possibly, principal. 

Federal regulations stipulate only the minimum early withdrawal penalty. 

There is no law preventing an institution from enacting tougher penalties, but they must be disclosed when the account is opened.

If you are considering Retirement Planning, call for a free consultation today.