Able to be redeemed prior to maturity. The term usually applies to bonds and convertible securities. The issuer of a callable security has to state the conditions under which the security may be called at the time of issue. For most securities, there is a certain initial time period in which the security cannot be called. A bond will usually be called when market interest rates fall below the yield being paid on the bond (bonds are usually called when the price rises to a certain point). To reflect this risk, a callable security is usually priced lower than a non-callable security.
also called callable.

Use redeemable in a sentence

You may want to put out a redeemable offer that will get people to come in and visit your new store.

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The money was not redeemable and that made me angry because I wanted to get it back as soon as possible.

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After Joel received his acceptance letter, Ethel was able to contribute to the college fund of her grandson by cashing in her redeemable savings bonds.

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term certificate callable bond