A bond that may be redeemed by its issuer before the date of maturity. To be callable, a bond must have this provision written into its terms upon issuance. Callable bonds usually cannot be redeemed before a certain amount of time; this is to protect their holders from a dip in interest rates. Also included in the terms of the bond are the possible dates on which it can be recalled and the payment the holder will receive from the issuer. More information on the terms of callable bonds can be found in financial manuals such as that of Standard and Poor’s.