Callable CDs give the bank or brokerage firm the right to call or redeem a CD earlier than you anticipated. You’re most at risk for having the bank take back the CD early if interest rates suddenly drop. It’s less likely your CD will be called if interest rates go up.

What does it mean if a CD is callable?

Callable CDs give the bank or brokerage firm the right to call or redeem a CD earlier than you anticipated. You’re most at risk for having the bank take back the CD early if interest rates suddenly drop. It’s less likely your CD will be called if interest rates go up.

What happens when my CD is called?

When a certificate of deposit (CD) matures, you get your money back without having to pay any early withdrawal penalties. The CD’s term has ended, so there are no bank-imposed withdrawal restrictions at maturity. You can do what you want with the money, but if you buy another CD, you won’t get the same interest rate.