Acceptance and Use of Older-Design Federal Reserve Notes (2024)

FAQs

Acceptance and Use of Older-Design Federal Reserve Notes? ›

1 Answer. These bills are not obsolete and are perfectly valid: It is U.S. government policy that all designs of Federal Reserve notes remain legal tender, or legally valid for payments, regardless of when they were issued.

Do I have to trade in my old-design notes when a new one begins circulating? No, you do not have to trade in your old-design notes for new ones. All U.S. currency remains legal tender, regardless of when it was issued.

Can I still use older-design notes? It is U.S. government policy that all designs of U.S. currency remain legal tender, or legally valid for payments, regardless of when they were issued.

The BEP's Mutilated Currency Division provides free mutilated currency redemption services for individuals and institutions, such as businesses and financial institutions, in possession of United States mutilated currency notes.

They shall be redeemed in lawful money on demand at the Treasury Department of the United States, in the city of Washington, District of Columbia, or at any Federal Reserve bank.

Exchanging old banknotes

Many banks accept withdrawn notes as deposits from customers. The Post Office will also accept withdrawn notes as a deposit into any bank account you can access at the Post Office. And you can always exchange withdrawn notes with us.

“A serial number '1' for a 1976 $2 bill would be worth $20,000 or more. But [for] a majority of those people holding 1976 $2 bills, they are only worth face value. There are very few that actually exceed face value.” Other high-value serial numbers include what collectors call “solid” or “ladders.”

Any one hundred dollar bill from 1950 or newer is basically going to just be worth the face value of $100 dollars. You have to remember that billions of one hundred dollar bills have been printed since 1950.

American paper currency comes in seven denominations: $1, $2, $5, $10, $20, $50, and $100. The United States no longer issues bills in larger denominations, such as $500, $1,000, $5,000, and $10,000 bills. But they are still legal tender and may still be in circulation.

Currency that is still valid, but is simply worn, ripped, or in otherwise poor condition can be replaced at a bank. Deposit the money into any account, and the bank's relationship with their country's central bank and minting service will ensure that it is swapped for fresh currency.

What is the difference between a US note and a Federal Reserve note? ›

The difference between a United States Note and a Federal Reserve Note is that a United States Note represented a "bill of credit" and, since it was issued by the government itself and does not involve either lending or borrowing, was inserted by the Treasury directly into circulation free of interest.

Often times, even financial institutions won't accept cash if it's too damaged. This is because the Federal Reserve does not accept deposits of mutilated money from banks and credit unions.

Most circulated Federal Reserve Notes from more modern series are worth no more than face value. Some of the early series notes (1928 and 1934) do carry a small premium, although for circulated notes this premium is small, usually 10% to 30%.

The Federal Reserve Board currently issues $1, $2, $5, $10, $20, $50, $100 notes.

Under a program initiated in 1981, the BEP purchases Federal Reserve notes from Reserve Banks for sale to the public.

The bank will simply take in your old notes and issue new ones. If you are exchanging a foreign currency for dollars, the bank should also provide a receipt that includes the exchange rate used and any fees.

If it's not in use anymore, there's likely a market for that money. Many people buy discontinued currency and create their own collections. If you already know that the currency is not in use anymore, check if you're in possession of a collector's note. Rare banknotes and coins can be sold for a pretty penny.

Paper money

American paper currency comes in seven denominations: $1, $2, $5, $10, $20, $50, and $100. The United States no longer issues bills in larger denominations, such as $500, $1,000, $5,000, and $10,000 bills. But they are still legal tender and may still be in circulation.

The 1957 $1 silver certificates are worth around $3.75 in very fine condition. In uncirculated conditions, the price is around $12-12.50 for bills with an MS 63 grade. $1.57–10.50 and possibly more depending on the condition like in mint condition or better yet, part of a run of bills, more the merrier.