Question about callable cds

Here’s a summary of the user’s reported problem and the solutions discussed:

  • Main Problem: The user is unsure if their CD, which has a maturity date next year, will automatically return to their account after receiving a call notification for next week.
  • Solution: When a CD is called, the issuer pays accrued interest until the call date, and the principal is returned to the core account according to the call schedule.
  • Additional Information: The user will receive an alert e-mail detailing the call and a payout alert e-mail when the payout is processed, indicating no further action is needed on their part.
Here’s the full thread
wiggly weasel
08/28/2024 at 13:51:02 PDT
Lets say I have a cd with a maturity date of mid next year. Suddenly recieved a call notification today with a date of next week. Does the deposit automatically get returned to my account in the form of my chosen money market fund for that account? Or is there more for me to do to retrieve the balance?
FidelityAidan
08/28/2024 at 15:15:28 PDT
Hey there, @wiggly weasel. Thanks for dropping in. Typically, when a CD is called, the issuer will still pay accrued interest up until the Call date. Then, on the call date, you will generally receive your principal payment back as a percentage of par value, according to the call schedule details. These will be paid out to your core account specifically, and there’s nothing more you need to do. As was likely the case in this situation, if a CD you purchased is scheduled to be called, you will receive a “Partial Call” or “Full Call” alert e-mail to inform you of the upcoming call details once we receive the notice. You will also receive a “Payout” alert e-mail on the actual call date once the payout is processed. As always, keep us updated if you have any additional questions for us regarding your CD!

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