Dictionary of Banking Terms: deposit note
deposit note
debt security issued by a bank, backed by federal deposit insurance up to $100,000 in principal and interest, and carrying an original maturity of two to five years. Deposit notes, which pay a fixed rate of interest, can be issued in book entry or certificate form.
Deposit notes are marketed through brokers, have an active secondary market, and hold some appeal with investors unwilling to buy bank holding company debt. Compare to bank note.
