What is a Callable CD?
Some longer term high yielding CDs have "call" features, meaning that the issuing bank may choose to terminate – or call – the CD after a fixed period of time. Only the issuing bank may call a CD and not the investor. For example, a bank might decide to call its high-yield CDs if interest rates fall. But if you’ve invested in a long term CD and interest rates subsequently rise, you’ll be locked in at the lower rate.