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Unlike a certificate of deposit and bonds, a time deposit is generally not negotiable; it is not transferable by the depositor, so that depositors need to deal with the financial institution when they need to prematurely cash out of the deposit. Time deposits enable the bank to invest the funds in higher-earning financial products.

Also known as NCDs, negotiable certificates of deposit are fixed deposit receipts that can be sold in a secondary market. Unlike other CDs, this type is structured so that the holder of the security can sell it to a third party. Like all types of CDs, it cannot be cashed until the security has reached full maturity, even if the asset is sold.

Domestic CDs Negotiable CDs issued by U. S. banks domestically are large denomination (greater than $100,000) time deposit liabilities evidenced by a written instrument or certificate. The certificate specifies the amount of the deposit, the maturity date,

FGB’s other international activities in 2014 include the conclusion of a Negotiable Certificate of Deposit (NCD) programme via its Singapore branch and the issuance of the bank’s debut 250 million Australian dollar (USD 228.35 million) ‘Kangaroo’ 5-year bond.