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.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.
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