Hey there,
@kennyisnotdead. I’ll be happy to drop in and explain how this works.
To first define what this means, brokered CDs may include a provision that allows the issuing bank or other depository institution to “call” or redeem the CD before maturity at a given price. Call features typically are exercised when a brokered CD is trading at a premium to its call price in the secondary market. If a CD has a call provision, the decision to call the CD is at the issuer’s sole discretion.
When this happens, the issuer still pays accrued interest until the CD is called. Then when the CD is called, you will generally receive your principal payment back. So, for example, if a 1 year CD pays interest monthly and is called after 3 months, you would receive your principal amount back, plus 3 months of accrued interest.
In short, you don’t need to take any action on your end throughout this process.
If you should have any questions regarding your particular CD, our fixed-income team is the best group to talk through this with. They are available through the link below from Monday to Friday, 8:00 a.m. to 8:00 p.m., ET. When you call, please say “fixed income” when prompted to get routed correctly.
Contact Us:
https://www.fidelity.com/customer-service/contact-us
Let us know if you have any questions!