Using .psd files in Photoshop Elements to use Over and Over Again.
.Psd files can save a lot of image data, layers and graphical elements. You can save a image that you have been working on in .psd format, then open that same file and continue editing the image or save it as another .psd file with a different filename and reuse it like a template.
If you save the file as a .psd file your layers and such are retained, this is very useful.
Files formats for Importing and Exporting are shown below.