Callable CDs

Callable CDs are “callable” by the issuing bank, which means that the bank has the option of closing the account after a protection period. Basically this allows the bank to maintain some liquidity. When you have a callable CD, you’ll get a call protection period.

For example, if you have a 3 year CD, with a 9 month protection period, the bank can’t “call” the CD back within the first 9 months. But after 9 months they can call it back at any time. These CDs tend to feature higher CD rates than traditional CDs, because you are giving the bank the option of calling the CD.