Warning: Creating default object from empty value in /hermes/bosnacweb04/bosnacweb04ai/b1550/ipg.lantanasolutionsbh98965/fincyclopedia/wp-content/plugins/independent-core/admin/ReduxCore/inc/class.redux_filesystem.php on line 29 Callable CD – Fincyclopedia
[wpdreams_ajaxsearchpro id=44 ]
  • Friday, June 20, 2025
  • The Financial Encyclopedia
[wpdreams_ajaxsearchpro id=43 ]

Banking

  Banking   |   Terms
  • 501
  • January 26, 2022
[addtoany]
Notice: Undefined variable: myString in /hermes/bosnacweb04/bosnacweb04ai/b1550/ipg.lantanasolutionsbh98965/fincyclopedia/wp-content/themes/independent/template-parts/post/content-single.php on line 41

Callable CD

A certificate of deposit (CD) (a time deposit) that pays its holder a fixed interest rate over its lifespan, and at the same time allows the issuer (issuing bank) to call or redeem it for the full face value before maturity. In that sense it a vanilla CD embedded with a call option. This option helps the issuer refinance its CDs in issue by paying a call premium to the investors (holders). For example, a callable CD that was already issued at a rate of 3.8% can be redeemed by the issuer in an environment of decreasing rates and reissue it at 3.4% yield.


[related_posts_by_tax title="See also" posts_per_page="10" taxonomies="post_tag"]

[pt_view id=ee4674bifl]
[su_box title="Watch on Youtube" style="soft" box_color="#f5f5f5" title_color="#282828" radius="2" class="" id=""][su_row class=""][su_column size="1/1" center="yes" class=""] [/su_column][/su_row][/su_box]

Latest Terms

Remember to read our privacy policy before submission of your comments or any suggestions. Please keep comments relevant, respectful, and as much concise as possible. By commenting you are required to follow our community guidelines.

Comments

    Leave Your Comment

    Your email address will not be published.*