What is a callable Certificate of deposit (CD)?

Then, determine which direction you think interest rates may be headed in the future. A callable certificate of deposit (CD) is an FDIC-insured CD that contains a call feature like other types of callable fixed-income securities.

Do Callable CDs have a call protection period?

Elizabeth Plot, CFP and founder of Primas Financial Planning, explains that callable CDs have a call protection period, which is a timeframe after opening an account when you are protected from the issuer calling the CD. The call protection period may last a few months or years, depending on the term.

Are callable CDs protected by federal insurance?

Yes, callable CDs are bank accounts that are protected by federal insurance. As long as you open a callable CD at an institution that is overseen by the FDIC or NCUA, your bank account is secure for up to $250,000 per depositor, per category.