It stands for negotiable certificate of deposit; a certificate of deposit (CD) that is marketable- i.e., the holder can resell it to other parties in the market. 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.

The negotiable certificate of deposit (NCD) revolutionized banking and the broader world of finance. Developed in 1961 by First National City Bank of New York (now Citibank), the NCD allowed large banks to quickly and efficiently secure funds for lending. It is also a mean by which liquidity can drawn from investors as well as businesses and consumers.

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