Deposit Notes and Bank Notes

There are so many unusual and rarely heard terms from the world of finance that it can all get pretty overwhelming. Even the experts sometimes need help understanding what’s what, especially since new financial products are being rolled out all the time. Two of the most common terms are deposit notes and bank notes.


Deposit notes are a special kind of bank financial product that are somewhat like certificates of deposit (CDs). Deposit notes are bank obligations that have time terms attached to them, usually in the range of two to five years. Deposit notes are also offered with specified rates, and are usually evaluated on a 360-day year. Deposit notes are also frequently evaluated by national organizations in order to give consumers a sense of their stability.

Bank notes, on the other hand, are one of the most common financial products around: money. Bank notes simply refer to paper money, as opposed to any other kind of asset. Bank notes – paper money – were the result of people complaining about carrying around metal money in the past. If merchants were wealthy they had to carry around heavy bags of coins – and if they were really wealthy it became practically impossible to transport. As trade evolved people began referring to all their coin money with certified pieces of paper alluding to how much money they had, and from these pieces of paper evolved the bank note. So, every time you reach into your wallet and take out some cash, or go to the ATM to withdraw funds, what you’re getting are bank notes, no matter what the denomination.

To learn more about deposit notes and bank notes, be sure to consult with a financial advisor. He or she can explain their uses and history to you in much greater detail and show you their uses and advantages.