Banks will accept ripped bills, but the process depends on how much of the bill is still there
A bank teller will take a torn $20 bill if more than half of it remains intact. The Federal Reserve has a specific rule: if you can see both the top and bottom halves of the bill's serial number, or if more than half the bill's surface area is present, your bank will exchange it for a new one at face value. This is true even if the bill is taped together, stained, or missing corners.
If less than half the bill remains, the Federal Reserve's Mutilated Currency Division can still help you, but the process is slower and requires documentation. You will not lose the money—the government honors damaged currency—but you may wait weeks instead of minutes.
The key difference is where the bill goes. A teller can handle most damage on the spot. Severe damage gets sent to a Federal Reserve facility for examination and verification before you receive replacement bills.
Key Takeaways
- Banks exchange torn bills for new ones at face value if more than half the bill is visible and intact.
- Tape, stains, and missing corners do not disqualify a bill—only the amount of remaining surface matters.
- Bills with less than half remaining go to the Federal Reserve's Mutilated Currency Division, which takes two to four weeks to process.
- You will need to fill out a form and may need to explain how the bill was damaged if you are exchanging a large amount.
What counts as "more than half" and what does not
The Federal Reserve measures damage by whether you can identify the bill and verify its value. If you can see both the top and bottom halves of at least one serial number (the numbers printed in the corners), the bill passes. If the bill is missing a corner but you can still see the full serial number elsewhere, it passes. If the bill is split down the middle but both halves are present, it passes.
What does not pass: a bill torn into three pieces where one piece is missing entirely. A bill burned so badly that only fragments remain. A bill so faded or stained that the serial numbers are completely illegible. In these cases, the teller will not hand you a new bill on the spot—instead, they will direct you to the Federal Reserve process.
Tape does not count against you. A $50 bill held together with clear tape, as long as the underlying bill meets the "more than half" test, will be exchanged when ready. The teller may remove the tape first, but the exchange happens the same day.
How to exchange a damaged bill at your bank
Walk into any bank branch where you have an account or any branch of a major bank and ask to speak to a teller about damaged currency. Bring the bill with you. You do not need to call ahead or make an appointment. The teller will examine it, confirm it meets the threshold, and hand you a replacement bill from the cash drawer. This takes five to ten minutes.
You do not need to be a customer of that specific bank. Most banks will exchange damaged currency for anyone, though some smaller branches may ask you to come back with a manager on duty. If the first teller seems uncertain, ask to speak to a supervisor—this is a routine transaction and supervisors know the Federal Reserve rules.
Bring the damaged bill itself. Do not mail it or send a photo. The teller needs to see and handle the physical bill to confirm the damage and verify the serial numbers.
What happens if the bill is too damaged for a teller to handle
If the teller says the bill does not meet the threshold, ask them to fill out a Form 105 (the official Federal Reserve form for mutilated currency). The teller will place the bill in an envelope, you will sign the form, and the bank will send it to the nearest Federal Reserve facility. You will receive a receipt showing the amount and the date submitted.
The Federal Reserve's Mutilated Currency Division will examine the bill under magnification, verify the serial numbers, and determine whether it is genuine and what denomination it is. If they confirm it is real, they will mail you replacement currency. This process takes two to four weeks, sometimes longer if the division is processing a high volume.
You will not receive a check or a credit to your account—you will receive actual bills in the mail. The Federal Reserve does not charge a fee for this service, and you are not required to have a bank account to use it. If you do not have a bank account, you can mail the damaged bill directly to the Federal Reserve facility in your region with a completed Form 105, though using a bank as an intermediary is faster.
Large amounts and when the bank asks questions
If you are exchanging a single torn $20 bill, no questions. If you are exchanging $500 in damaged currency at once, or if the damage pattern suggests the bills were deliberately destroyed, the bank may ask how the damage occurred. This is not because they suspect you of a crime—it is because banks are required to report unusual currency transactions to the Treasury Department.
Be straightforward. "My washing machine destroyed them" or "They were in a flood" are normal answers. The bank is not investigating you; they are documenting the transaction. If you have a large number of damaged bills, the bank may ask you to fill out additional paperwork or may send the bills to the Federal Reserve instead of exchanging them from the drawer.
Deliberately mutilating currency with intent to render it unfit for circulation is technically illegal under federal law, but this applies to intentional destruction, not accidental damage. Washing machine damage, water damage, fire damage, and pet damage are all routine and do not trigger any legal concern.
Coins and other forms of damaged currency
This process applies only to paper bills. Damaged coins follow a different path. Banks do not exchange coins for damage—they exchange coins that are no longer legal tender (like old commemorative coins or coins from countries that no longer exist). A bent or scratched coin has no special process; you can spend it or deposit it normally.
Checks, gift cards, and other financial instruments are not covered by the mutilated currency rules. If a check is damaged, you contact the issuer. If a gift card is damaged, you contact the retailer.
Frequently Asked Questions
Can I exchange a bill that is taped together?
Yes, as long as more than half the bill is visible and you can see the serial numbers. The teller may remove the tape, but the exchange happens when ready at face value. Tape does not disqualify a bill.
What if I lost half the bill and only have one piece?
If you have less than half, the teller will not exchange it on the spot. You will need to fill out Form 105 and send it to the Federal Reserve's Mutilated Currency Division. They will examine it and determine whether it can be verified as genuine. If they cannot confirm it is real, you will not receive replacement currency.
How long does it take to get replacement bills from the Federal Reserve?
Two to four weeks is typical. The Federal Reserve will mail the replacement bills to the address you provide on the form. You will not receive a check—you will receive actual currency.
Do I need a bank account to exchange damaged currency?
No. You can walk into any bank branch and ask a teller to exchange a damaged bill, even if you do not have an account there. If you prefer not to use a bank, you can mail the damaged bill directly to your regional Federal Reserve facility with a completed Form 105.
What if the bank refuses to exchange my damaged bill?
Ask to speak to a supervisor and explain that the bill meets the Federal Reserve threshold (more than half present, serial numbers visible). If the branch still refuses, contact your regional Federal Reserve facility directly—they can advise you on next steps or accept the bill by mail.