Negotiable Certificate of Deposit Law and Legal Definition

Negotiable Certificate of Deposit (NCD) refers to a large time deposit in a commercial bank. Distinct from a smaller time deposit, NCD cannot be redeemed early but is negotiable so that it can be sold to others. The maturity and rate paid on an NCD is generally negotiated at the time of issue. Maturities of an NCD range from two weeks to twelve months.