Are your CDs callable? What is callable vs non-callable CD? Traditional CDs offer a guaranteed rate of return, but they come with one requirement: Money can't be withdrawn from the CD until its maturity date. One type of alternative CD, however, is a callable CD, which can be closed by the issuer before its maturity date and often feature above-average interest rates. Are callable CDs worth it? Callable CDs often offer higher interest rates than non-callable CDs—in many cases half a percentage point or more—providing the potential for better returns. But the downside is hard to ignore. Early redemption by the issuer can disrupt your investment plans.
What is callable vs non-callable CD? Traditional CDs offer a guaranteed rate of return, but they come with one requirement: Money can't be withdrawn from the CD until its maturity date. One type of alternative CD, however, is a callable CD, which can be closed by the issuer before its maturity date and often feature above-average interest rates. Are callable CDs worth it? Callable CDs often offer higher interest rates than non-callable CDs—in many cases half a percentage point or more—providing the potential for better returns. But the downside is hard to ignore. Early redemption by the issuer can disrupt your investment plans.