The big banks and brokerages are “calling” high-rate CDs! Do you know what that means?
CD rates are falling, but you locked in a nice high-rate CD with a big bank or brokerage firm, so you think your returns are safe, right? Don’t bet on it!
Many high-rate CDs are “callable,” meaning the big bank or brokerage firm can “call” them back before maturity. It’s in the fine print and about 18% of CDs sold through Fidelity this year were callable, according to the Wall Street Journal.
What are the big banks and brokerages doing? Calling your CDs because that saves them money. They are sending your principal and accrued interest back to you, and that high rate you had is gone. It is a business-driven decision, not a customer-driven decision. That’s their business, but it isn’t ours.
Our Certificates are NEVER callable. Our members enjoy peace of mind that their money will earn what they expect it to for the full term.
Has your big bank or brokerage CD been called? Contact us and invest in a certificate with your credit union!