A short-term, marketable deposit instrument issued and payable primarily in London, typically in minimum denominations of GBP 100,000. By convention, it carries a maturity of up to five years, though the majority are issued for less than six months. Sterling CDs may bear fixed or variable interest, or be issued at a discount without a coupon; interest-bearing issues are generally sold at par for large amounts. The interest rate closely follows the prevailing sterling interbank rate for equivalent maturities. These certificates are freely negotiable in the secondary market but are not eligible as collateral in the Bank of England’s open market operations. Sterling CDs are identified by a GB ISIN.
See the definition of Certificate of Deposit here.
