I received this from SCOTTRADE regarding a callable CD - has anyone heard of this - Sounds that if the rate is below market - your CD will not be called, but if the predetermined rate is above market, say goodbye to the CD.*****************Dear Scottrade Customers:Scottrade is pleased to announce the addition of “Callable Step-Up CDs” to its offering of Bullet, Secondary, Callable, and Zero-Coupon CDs! Step-Up CDs offer investors a higher yield and more protection in a rising interest rate environment than fixed-rate CDs. Step-Ups have a predetermined schedule of coupon rates that increase over a specified period of time. In return for a higher yield, issuers have the right to call the CD according to a predetermined call schedule. This could subject the investor to reinvestment risk.All CDs at Scottrade carry FDIC insurance and contain an “Estate Feature”. This allows the estate of the beneficial holder to return the CD to the issuer at par in the event of the beneficial owner's death.
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