April 23, 2007


  • Why did Stanford FCU use the misleading and confusing phrase "callable CD"?? In the financial services world, a "callable CD" is one which pays a premium rate but can be redeemed (called) by the ISSUER prior to maturity. I strongly disapprove of their misappropriation of the commonly-understood term "callable CD", particularly if Stanford''s members purchase a "callable CD" in the future from a different source (i.e. a broker) under the mistaken idea that the depositor has the right to unilaterally withdraw ("call") the funds. StanfordFCU should have used a name like "Cashable CD" or "Redeemable CD".
    Ron Bensley, Jr.