How are LTNCDs different from time deposits?
LTNCDs are similar to time deposit accounts except for the following: (a) LTNCDs are long-term in nature, usually with maturities of at least 5 years and 1 day; (b) unlike normal time deposits, LTNCDs cannot be pre-terminated, meaning the investor has to wait for the time deposit to mature; (c) LTNCDs are negotiable, which means they can be used as collateral for a bank loan or sold to other investors.
