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Investments glossary

Negotiable Certificate of Deposit (NCD)


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A negotiable certificate of deposit (NCD), also known as a jumbo CD, is a certificate of deposit (CD) with a minimum face value of $100,000, though NCDs are typically $1 million or more. They are guaranteed by the bank and can usually be sold in a highly liquid secondary market, but they cannot be cashed in before maturity. Because of their large denominations, NCDs are bought most often by large institutional investors that typically use them as a way to invest in a low-risk, low-interest security. A Yankee CD is one example of an NCD.

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