What is Callable FD?
1 Like
I remember when I went to the bank with my baba to open my first FD account when I was 18. I was so confused and then the guy started throwing jargons at me. I asked him what is callable FD. He said that it is a type of investment where I will have the flexibility to withdraw my money before the maturity date. So, basically a regular FD where I can withdraw it prematurely by paying a small penalty.
When I asked why and who would choose it, my baba told me that callable FD is ideal for people who want to earn steady interest but need easy access to their money in an emergency. The catch is that callable FD offered a lowered interest rate and abba said that I can take money from him if need be. He suggested I book FD with a higher interest rate and keep it locked in till maturity.
So yea, this is how I learned about callable fixed deposits. I hope I was able to help you out. Let me know if you want any more information.