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CD Call Period

The CD Call Period pertains to the duration of time in which your issuer can decide to redeem your CD and return your money including interest before it reaches its maturity date. For example, if a Callable CD’s call date is within six months of the issue date- this does not necessarily mean that the CD matures within six months. Instead, within that six months and six months thereafter for the life of that CD, the issuer has the option to call the CD and return the money to the investor with interest. CDs are recalled by lenders most often in response to significant or unexpected changes in interest rates. Investors should do a sufficient amount of research before making a commitment to this type of investment. Callable CDs typically promise higher returns than regular CDs and are insured by the FDIC. Similar to regular CDs, Callable CDs require the payment of a fixed interest rate during the life of the account.

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