Define: Negotiable Certificate Of Deposit

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Definition: Negotiable Certificate Of Deposit



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Full Definition of Negotiable Certificate Of Deposit


A negotiable certificate of deposit is a large denomination certificate of deposit (CD), a savings instrument issued by a bank. Usually bought by institutional investors, a negotiable certificate of deposit is normally issued in amounts ranging from $100,000 to $1 million or more. Investors in a negotiable certificate of deposit want a short term, discounted investment which provides a fixed interest rate return over an agreed period. The negotiable certificate of deposit often comes in bearer form and can trade in the highly liquid secondary market. A negotiable certificate of deposit trades at a discount to the face value, which is repaid on maturity. However, a negotiable certificate of deposit cannot be cashed-in before it matures. The issuing bank guarantees payment of the negotiable certificate of deposit. Investors consider a negotiable certificate of deposit a low-risk, low-interest security. Another term for a negotiable certificate of deposit is a Jumbo CD.


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Negotiable Certificate Of Deposit. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. April 05, 2020 https://payrollheaven.com/define/negotiable-certificate-of-deposit/.
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Negotiable Certificate Of Deposit. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/negotiable-certificate-of-deposit/ (accessed: April 05, 2020).
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Negotiable Certificate Of Deposit. PayrollHeaven.com. Retrieved April 05, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/negotiable-certificate-of-deposit/

Definition Sources


Definitions for Negotiable Certificate Of Deposit are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 7th February, 2020