A callable certificate of deposit is a CD that can be redeemed early by the issuing bank at a predetermined price. Here's how they differ from traditional CDs.

Callable CDs should state a noncallable period, or the initial time when the CD cannot be called. For example, a five-year CD may have a one-year call-protection period.

When is a callable CD worth it? Experts say a callable CD can be worth it if you can get a very high rate, notably higher than what banks are offering on traditional CDs. "The rate should be much ...

Returning to our earlier example, let's look at your $10,000 one-year callable CD again. It's paying you 5%, but prevailing rates have jumped to 6% by the time the callable date hits.

Explore callable CDs. We'll dive into their potential for higher interest rates, the risks of being called back by a bank, and when to consider one.

How to Calculate Yield for a Callable Bond March 13, 2016 — 09:59 am EDT. ... the government would have to shell out an extra $10 billion annually. For example: one easy, ...

Callable CDs tend to come with higher interest rates than traditional CDs, as they're a lower risk for financial institutions. If rates drop, they can recall the CD and start offering new CDs at ...