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What is the Negotiable Certificate of Deposit (NCD)?

negotiable certificate of deposit

Basically, the negotiable certificate of deposit (NCD) refers to the certificate of deposit with the minimum par value of although typically.

And NCDs carry a much higher face value. They are also known as jumbo CDs. And NCDs are guaranteed by the bank and can be traded in a highly-liquid secondary market.

However, they cannot redeem before maturity. Because NCDs are so large, they usually purchase by institutions and wealthy individual investors.

How Understanding Certificate of Deposits?

1. The Interest Rate:

2. The Maturity Term:

What are the Advantages of Certificates of Deposit?

What are the Disadvantages of Certificates of Deposit?


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