Banks will replace torn money, but only if enough of it remains to verify the amount
If you bring a torn bill to your bank, they will send it to the Federal Reserve's Currency Examination facility for inspection. The Federal Reserve decides whether to replace it based on how much of the bill is still there. If more than half of the bill remains and it is identifiable as genuine currency, you will receive a replacement. If less than half remains, or if the bill is too damaged to verify, the Federal Reserve will not replace it.
This is a free service. You do not pay your bank to submit the damaged bill, and you do not pay the Federal Reserve to examine it. The process takes time — usually two to four weeks — because the bill has to travel to a Federal Reserve facility, be examined by hand, and then a replacement has to be mailed back to your bank.
Key Takeaways
- More than half of the bill must be present and identifiable for the Federal Reserve to replace it.
- You bring the damaged bill to your bank, not directly to the Federal Reserve.
- The replacement process takes two to four weeks from the day your bank submits it.
- You receive the replacement through your bank, not by mail to your home.
- Damage from normal wear — fading, creases, small tears — does not prevent replacement if the bill is still identifiable.
How much of the bill has to remain
The Federal Reserve uses a straightforward rule: if you can identify the bill as genuine U.S. currency and more than half of it is present, it qualifies for replacement. "More than half" means the larger portion of the bill, not exactly 50 percent. A bill torn in half with one piece clearly larger than the other will be replaced. A bill torn into equal halves will not.
The bill does not have to be in one piece. If you have multiple fragments that together make up more than half of the original bill, tape them together before bringing them to your bank. Use clear tape and arrange the pieces so the Federal Reserve examiner can see the bill's features clearly. Do not use glue or markers that obscure the surface.
Damage from handling — creases, fading, stains, small holes — does not count against you as long as the bill is still identifiable. A bill that has been washed in the laundry, exposed to water, or worn thin from circulation will still be replaced if more than half remains and it is clearly genuine currency.
What your bank does with the damaged bill
When you bring a torn bill to your bank, the teller will take it and fill out a Currency Examination Request form. This form records the denomination of the bill, the condition, and your account information. Your bank then packages the bill securely and sends it to the nearest Federal Reserve facility. Most banks batch these requests and send them weekly or as they accumulate.
You do not need to be a customer of the bank to submit a damaged bill. Some banks will accept damaged currency from non-customers, though policies vary. Call ahead if you do not have an account there. Some banks may ask you to fill out a form with your name and address so they can contact you if there is a problem with the examination.
The bill itself leaves your hands at this point. You will not see it again. The Federal Reserve examines it, makes a information, and either approves a replacement or denies it. Your bank will notify you of the result, usually by phone or mail.
Timeline from submission to replacement
The process is not fast. After your bank submits the bill, it takes roughly two to four weeks for the Federal Reserve to examine it and send a replacement back to your bank. Some banks may hold the replacement at the teller window for you to pick up. Others may deposit it directly into your account if you provided account information. Ask your bank which method they use before you leave.
If the Federal Reserve denies the replacement — because less than half of the bill remains or because it cannot be verified as genuine — your bank will notify you. You will not receive a replacement, and you will not receive the original bill back. The damaged bill is destroyed during the examination process.
When the Federal Reserve will not replace a bill
The Federal Reserve will deny a replacement if less than half of the bill is present. They will also deny it if the bill cannot be verified as genuine U.S. currency — for example, if it is a counterfeit, a bill from another country, or so badly damaged that no identifying features remain visible.
Intentional damage also disqualifies a bill. If you deliberately cut, burn, or destroy a bill, the Federal Reserve will not replace it. However, accidental damage — a bill torn in a pocket, damaged by water, worn thin by circulation — is always covered if enough of it remains.
Bills damaged by animals, insects, or mold are still may be able to access for replacement as long as more than half is present and identifiable. The Federal Reserve does not penalize you for how the damage occurred, only whether the damage is so severe that the bill cannot be verified.
Alternatives if you cannot wait
If you need cash when ready and cannot wait two to four weeks, you have two options. First, you can exchange the damaged bill at a bank teller window for a different bill of the same denomination, if the teller can verify it is genuine currency. Some tellers will do this on the spot without sending it to the Federal Reserve, though this is at the teller's discretion and depends on how damaged the bill is.
Second, you can straightforward spend the damaged bill. Merchants are not required to refuse damaged currency as long as it is identifiable and genuine. A torn bill, a faded bill, or a bill with stains is still legal tender. You can use it to make purchases at stores, restaurants, or any business that accepts cash. The only bills that merchants may refuse are those so damaged that they cannot determine the denomination or verify authenticity.
Coins and other currency
This process applies only to paper currency — bills. Damaged coins are handled differently. The Federal Reserve does not replace coins through banks. If you have damaged coins, you can spend them if they are still identifiable, or you can take them to a coin dealer or collector who may purchase them based on their condition and rarity.
Foreign currency, old U.S. bills no longer in circulation, and commemorative coins are outside the scope of the Currency Examination facility. If you have damaged currency that is not current U.S. paper money, contact the Federal Reserve directly or ask your bank whether they can help.
Frequently Asked Questions
Can I get a replacement if my bill is wet or moldy?
Yes. Water damage and mold do not disqualify a bill as long as more than half of it remains and it is still identifiable as genuine U.S. currency. Bring it to your bank in a dry condition — do not submit it while it is still wet. Let it dry completely first, then bring it in.
What if I have a bill that is half U.S. and half another country's currency?
This is not a U.S. bill, so the Federal Reserve will not replace it. You can spend the U.S. half at face value in most cases, though some merchants may refuse it. The foreign half has no value in the United States unless you exchange it at a currency exchange service.
Do I need to bring the bill in person, or can I mail it to the Federal Reserve?
You must bring it to a bank. Do not mail damaged currency directly to the Federal Reserve. Banks handle the submission process. If you cannot visit a bank in person, call ahead and ask whether they will accept a mailed damaged bill from you, though most require in-person submission.
Will my bank charge me to submit a damaged bill?
No. Submitting damaged currency to the Federal Reserve is a free service. Your bank does not charge you, and the Federal Reserve does not charge you. There are no fees at any step of the process.
What happens if the Federal Reserve says the bill is counterfeit?
If the Federal Reserve determines the bill is counterfeit, they will not replace it and will not return it to you. They will notify your bank, which will notify you. Counterfeit currency is a federal crime, but possessing it unknowingly is not prosecuted. If you suspect you received counterfeit currency, report it to your bank or the U.S. Secret Service, but you are not in legal trouble for turning it in.