What Is a Negotiable Certificate of Deposit?

Video Transcript

"This is Patrick Munro, Financial Advisor, talking to you about what are negotiable certificates of deposit. When you get in the habit of saving money you'll find that you have accrued larger amounts of money, and therefore you want to find a place to make that money work for you as you have worked for it. And of course you would go to a bank and give them that money and they would give you a certificate. It's negotiable to the bearer of the certificate, but normally, under today's guidelines, they'll also make it to your identity. It's called a "certificate of deposit" and it bears an interest rate that the bank will pay you after a certain period of time has elapsed. Normally it's a minimum six months. Sometimes it's a year, sometimes it's longer than that, and the longer the period of time that you give the bank your money, normally they'll give you a higher rate of return. To get the best rates of return on certificates of deposit you should go on the Internet and look up the website bankrate.com. Bankrate.com will take you to the best banks paying the highest rates for negotiable certificates of deposit. This is Financial Advisor Patrick Munro."