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Investing - Theory, News & General • how does a bank determine whether to call a CD?

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I have some small CDs that are callable this month, but don't understand how the banks may determine whether to call. Certainly, the rate is a factor, but does the amount and remaining time to maturity matter? Examples:

$12k, 5.5%, maturity 7/5/24
$5k, 5.6%, maturity 8/19/24
$2k, 5.5%, maturity 7/28/25

Current market rates seem to be 5.1% to 5.2%.

I can't seem to find any historical data on this matter.
I don't think there's one formula. It's going to be a combination of their need for funds, total amount of interest potentially paid, and how much they want to annoy their customers.

If that CD was backing a loan that has been paid off, they may call the CD even if the rate wasn't above market.

Statistics: Posted by exodusNH — Thu Jan 04, 2024 6:38 pm — Replies 1 — Views 67



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