Are callable CD's routinely...called... if rates drop? In my Vanguard account I saw some callable CD's with slightly higher returns than other CD's or Treasuries. For example, a nominal 5.4 %, but callable in September. Presuming rates stay as they are, or go down, is it a virtual guarantee they would be called come September?
? about Callable Brokered CD's
- Thread starter mystang52
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Sunset
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
There must be a cost to calling as I have a 7 percent bond that is still paying and not called.
Gotadimple
Thinks s/he gets paid by the post
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- Feb 17, 2007
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It depends on the rates and on the bank. I have had several that were never called, and then did have one called because the bank was acquired. Schwab's Bond department was very proactive in notifying me what had happened and putting the funds back in my account. I'm sure this is true of many of the other large brokers.
