Negotiable Certificate Of Deposit (NCD)

Loading the player...

What is a 'Negotiable Certificate Of Deposit (NCD)'

A negotiable certificate of deposit (NCD) is a certificate of deposit with a minimum face value of $100,000. These are guaranteed by the bank and can usually be sold in a highly liquid secondary market, but they cannot be cashed-in before maturity.

BREAKING DOWN 'Negotiable Certificate Of Deposit (NCD)'

Due to their large denominations, NCDs are bought most often by large institutional investors. Institutions often use these as a way to invest in a low-risk, low-interest security.

A Yankee CD would be one example of a NCD.

RELATED TERMS
  1. Yankee Certificate Of Deposit

    A certificate of deposit issued by a foreign bank in the United ...
  2. Yankee CD

    A certificate of deposit (CD) that is issued in the United States ...
  3. Jumbo CD

    A certificate of deposit (CD) with a minimum denomination of ...
  4. Indexed Certificate Of Deposit ...

    A savings certificate entitling the bearer to receive an interest ...
  5. Term Deposit

    A deposit held at a financial institution that has a fixed term, ...
  6. Add-On Certificate of Deposit

    A certificate of deposit that allows the bearer to deposit additional ...
Related Articles
  1. Investing Basics

    What's a Negotiable Certificate Of Deposit?

    A negotiable certificate of deposit, or NCD, is a large certificate of deposit that is typically purchased by institutional investors.
  2. Term

    How Time Deposits Work

    A time deposit is an interest-bearing bank deposit that has a specific maturity date.
  3. Professionals

    Corporation and Financial Institution Instruments

    FINRA Series 6 Exam Study Guide - Corporation and Financial Institution Instruments. Deals with the various ways for corporations and Banks to raise short-term funds in the money market such ...
  4. Retirement

    Index-Linked Certificates Of Deposit: Upside Potential, Low Risk

    Index-linked CDs generate returns similar to indexes, without the potential for loss.
  5. Savings

    Explaining Term Deposits

    A term deposit (more often called a certificate of deposit or CD) is a deposit account that is made for a specific period of time.
  6. Professionals

    Introduction

    FINRA/NASAA Series 66 - Regulation of Securities. This section gives all the definitions of security under the Uniform Securities Act (USA).
  7. Savings

    What is a Demand Deposit?

    A demand deposit is any type of account where the money in the account may be withdrawn at any time without prior notice to the financial institution.
  8. Savings

    Where To Put Your Cash: Call Deposit Vs Time Deposit Accounts

    Time deposit accounts and call deposit accounts allow customers to earn higher interest in exchange for less access to their cash.
  9. Bonds & Fixed Income

    Safety and Income: Banks

    By Brian PerryThere are many investment options available at the local bank. Because they specialize in savings and investment alternatives that are designed to provide safety and income, banks ...
  10. Investing Basics

    8. Cashing In Your Certificate of Deposit

    fff
RELATED FAQS
  1. What are the typical durations for a certificate of deposit?

    Investing in a certificate of deposit offers individuals the ability to earn interest on idle funds with less risk than stock ... Read Answer >>
  2. What is the difference between a demand deposit and a term deposit?

    Understand the meaning of demand deposits and term deposits, and learn about the major differences between these two types ... Read Answer >>
  3. How do you get a hard copy of a stock certificate?

    Before online brokers and personally-directed accounts, holding a physical stock certificate was a necessity, as this was ... Read Answer >>
  4. For what types of accounts are demand deposits available?

    Learn about the different types of accounts designated as demand deposit accounts, such as savings accounts and money market ... Read Answer >>
  5. How are yields taxed on a certificate of deposit (CD)?

    Learn how interest earned on a certificate of deposit is taxed and how this may reduce the total return of an investment ... Read Answer >>
  6. How safe an investment is a certificate of deposit?

    Discover certificates of deposit, their basic makeup and numerous variations, and understand why they are some of the safest ... Read Answer >>
Hot Definitions
  1. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  2. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  4. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  5. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  6. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
Trading Center