A debt security that constitutes a promise to pay interest during the term over which the issuer (borrower of funds) can use the money (the note’s principal), in addition to repayment of the principal (back to the investor/ holder of the note) on or before the maturity date. In that sense, a note is very much similar to a bond, and in many context both are used interchangeably. However, the maturity of a note is usually intermediate (more than 1 year and up to 3 or 5 years, etc.)

With respect to treasury issuances (e.g., US Treasury securities), a note is an intermediate-term obligation on a government agency that matures in two, three, five, or tens years from its issue date.