We now add another asset class to our investment portfolio. Here are details about Long Term Negotiable Certificate of Deposit (LTNCD) — a relatively safe bank product that offers higher interest rate than your regular savings accounts.
If you’re looking for non-traditional investments that are relatively safe, you may check out LTNCD or Long-Term Negotiable Certificate of Deposit.
LTNCD is a bank product very similar to Time Deposits, except that they have longer maturity periods. While most Time Deposits mature in 1 month, 6 months, or 1 year, LTNCDs usually mature in at least 5 years.
One good thing about LTNCD is that investments up to P500,000 are covered by the Philippine Deposit Insurance Corp. (PDIC), which makes this option a relatively safe investment asset.
It seems like more and more local banks are preferring the use of Long-Term Negotiable Certificates of Deposits (LTNCD) as a way of raising additional funds. Instead of issuing more shares or launching a new debt instrument, banks in the Philippines are resorting to LTNCDs which consumers find more attractive because they are relatively safe yet high-yielding compared to traditional deposits.