Nota vs. cédula
When referring to paper money in Portuguese, the choice between nota and cédula depends largely on the region and the level of formality. While nota is the universal term used in daily life in both Brazil and Portugal, cédula is a more technical term primarily found in Brazilian Portuguese.
Nota
A1This is the most common and versatile word for banknote in both Brazil and Portugal. It is used in everyday casual conversation, commerce, and general descriptions of paper money.
Eu preciso trocar esta nota de cem reais.
(I need to change this one hundred real banknote.)
Encontrei uma nota de cinco euros no bolso do meu casaco.
(I found a five euro banknote in my coat pocket.)
A loja não aceita notas rasgadas.
(The store does not accept torn banknotes.)
Ele me deu duas notas de dez como pagamento.
(He gave me two ten notes as payment.)
Cédula
B2In Brazil, this word is used in formal, legal, or banking contexts (similar to legal tender), though people understand it perfectly. In Portugal, cédula is almost never used to mean money; there, it usually refers to an official document (like a professional license) or a voting ballot.
O Banco Central anunciou o lançamento de uma nova cédula.
(The Central Bank announced the launch of a new banknote.)
A perícia confirmou que a cédula era falsa.
(The forensics team confirmed that the banknote was counterfeit.)
Numismatas pagam caro por cédulas antigas e raras.
(Numismatists pay a high price for old and rare banknotes.)
O funcionário contou as cédulas antes de fechar o caixa.
(The employee counted the banknotes before closing the register.)
Summary
Use nota for everyday interactions in any Portuguese-speaking country; it is the equivalent of saying bill (US) or note (UK). Use cédula principally in Brazil when writing formally or discussing money in a technical, banking, or collection context. Avoid using cédula to mean money in Portugal.