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What is the Negotiable Certificate of Deposit (NCD)? – Understanding, Advantages, and More

negotiable certificate of deposit (NCD)

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

And a negotiable certificate of deposit NCD carries 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 marketing.

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

How Understanding the 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?

Also Read: 3 Ways in which AI is Improving the Manufacturing Industry

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