Dictionary of Banking Terms: bank note
bank note
- non-interest bearing promissory note, issued by an authorized bank for payment of debts. The federal reserve note is the only officially authorized circulating note. Synonymous with currency and legal tender.
- unsecured interest-bearing notes issued by banks in denominations of $100,000 and up, and sold to institutional investors. These notes are similar to Certificate of Deposit (CD), except that these obligations are not protected by deposit insurance. Bank notes resemble bonds more than deposits, paying semiannual interest, and are liabilities of issuing banks rather than bank holding companies. See also deposit note.
