Negotiable Certificate of Deposit

Glossary

Banking

Negotiable Certificate of Deposit

A negotiable Certificate of Deposit (or CD) is a money-market instrument that evidences a large-denomination interest-paying bank deposit that is negotiable i.e. marketable, meaning it can be traded between parties through money brokers. In certain cases, terms can also be negotiable. The negotiable CD was created in the early 1960s as a means for banks to attract large-size corporate deposits.

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