It stands for interbank negotiable certificate of deposit; a certificate of deposit (CD) that is issued in the interbank market and where holders can resell in that market (a subsector of the interbank market known as NCD market). For banks, especially medium and small-sized banks, usually use this instrument as a liquidity support.

A negotiable CD constitutes a large-denomination interest-bearing bank deposit (with a par value of USD 100,000, at least) that is marketable, i.e., tradable between parties through money brokers. In certain cases, terms can also be negotiable.

It is a savings vehicle that banks and other similar types of institutions use as a means of investing surplus and raising funds in the interbank market.

It is similar to a traditional certificate of deposit, but a negotiable CD is more liquid and involves a lower liquidity risk.