Banks will take ripped bills, but the process depends on how badly damaged they are
A torn bill is not worthless. Banks accept damaged currency and either put it back into circulation or send it to the Federal Reserve for inspection. If more than half of the bill is present and the damage is minor — a small tear, a stain, tape on one side — your bank will usually accept it as-is during a normal deposit. If the bill is badly damaged, missing pieces, or you are uncertain whether it is salvageable, you can exchange it at your bank for a replacement without penalty.
The key rule is this: if you can clearly identify the bill and more than half of it remains, a bank will take it. You do not need to do anything special. Hand it over with your deposit, and it goes through the normal cash-handling process. Banks see damaged bills constantly — they are part of ordinary circulation.
Key Takeaways
- Banks accept ripped or torn bills in regular deposits if more than half the bill is intact and you can identify its denomination.
- Minor damage like small tears, creases, or stains does not prevent a bank from accepting a bill during a normal transaction.
- If a bill is severely damaged or you are unsure whether it is acceptable, ask a teller — they can tell you on the spot whether it will be taken or exchanged.
- The Federal Reserve has a Mutilated Currency Division that handles bills too damaged for normal circulation, but you do not contact them directly; your bank handles the submission.
- Damaged bills do not lose their face value — a torn $20 bill is still worth $20 if it meets the "more than half" rule.
What counts as damage a bank will accept
Banks distinguish between bills that are still usable in circulation and bills that are too damaged to handle safely or identify. A bill with a small tear along an edge, a coffee stain, tape covering part of it, or creases from being folded is still acceptable. These bills move through the banking system constantly, and tellers are trained to spot them and process them normally.
The damage has to be visible but not prevent you or a teller from confirming what bill it is. If you can see the denomination, the portrait, and enough of the serial number or other identifying features, the bill will be accepted. Wear and tear from normal use — fading, softening of the paper, small holes — is expected and causes no problem.
When a bank will not take a bill and what happens instead
A bill is rejected if more than half of it is missing, if the remaining pieces cannot be matched together, or if it is so deteriorated that the denomination cannot be determined. A bill that has been burned, dissolved, or shredded falls into this category. In these cases, a teller will tell you the bill cannot be processed through normal deposit.
When this happens, you have two options. The first is to ask the bank to exchange it for a replacement bill of the same denomination — most banks will do this as a courtesy, though they are not required to. The second is to contact the Federal Reserve's Mutilated Currency Division directly. You send the damaged bill (or pieces of it) to the Federal Reserve, along with a letter explaining what happened. The Federal Reserve examines it and, if they determine it was legal U.S. currency, they will send you a replacement. This process takes several weeks.
For most people, the bank exchange is faster and simpler. You lose nothing — the bill's face value is not forfeited because it is damaged.
How to handle a bill that is too damaged to spend
If you have a bill that is badly torn, burned, or otherwise damaged and you are not sure whether a bank will take it, bring it to your bank and ask a teller. They will look at it and tell you when ready whether it can be deposited or exchanged. There is no cost to you either way.
If the bill is so damaged that the bank will not exchange it, you can contact the Federal Reserve's Mutilated Currency Division. You will need to send the bill or the pieces of it, along with a written explanation of what happened (for example, "This bill was in the washing machine" or "This bill was damaged in a fire"). Include your name, address, and phone number. The Federal Reserve's address and current instructions are available on the Federal Reserve's website under "Damaged Currency."
The Federal Reserve does not charge a fee. If they confirm the bill was genuine U.S. currency, they will mail you a replacement. The process typically takes four to eight weeks, depending on how damaged the bill is and how many pieces you are submitting.
Why banks and the Federal Reserve care about damaged bills
Damaged bills are removed from circulation because they can tear further, become unreadable by sorting machines, or spread contamination if they are moldy or otherwise compromised. Banks use machines to count and sort cash, and a bill that is too fragile or deteriorated can jam the equipment or be misread.
The Federal Reserve maintains the Mutilated Currency Division specifically to handle bills that are too damaged for normal processing but may still be legitimate currency. This protects people who have damaged bills through no fault of their own — a house fire, a flood, a washing machine accident — and ensures they are not left with worthless paper.
Common situations with damaged bills
A bill that went through the washing machine: If it is still in one piece and you can identify it, a bank will take it. Wash and water damage alone do not disqualify a bill. Let it dry completely before depositing it.
A bill with a small tear or hole: This is accepted in normal deposit. Tellers see this regularly. You do not need to tape it or do anything to prepare it.
A bill that is partially burned: If more than half remains and the denomination is identifiable, a bank may accept it. If you are unsure, ask a teller. If the bank will not take it, the Federal Reserve's Mutilated Currency Division will examine it.
A bill that has been taped: Banks will accept it. The tape does not prevent identification or use. Do not remove old tape — just deposit it as-is.
A bill that is faded or discolored: This is normal wear and is always accepted.
What you need to know about exchanging damaged bills
You do not need to be a customer of the bank to exchange a damaged bill, though most banks will ask for identification. You do not need to have a deposit to make — you can walk in and ask to exchange a damaged bill for a replacement. The teller will examine it, confirm it is genuine U.S. currency, and give you a new bill of the same denomination.
If the bank refuses to exchange it (which is rare), you can take it to a different bank or contact the Federal Reserve. You will not lose the value of the bill — it is always worth its face value as long as it is genuine currency and meets the "more than half" rule.
Frequently Asked Questions
Will a bank take a bill that is taped together?
Yes. Tape does not prevent a bank from accepting a bill. Deposit it as-is — you do not need to remove the tape or prepare it in any way. The bill will be processed normally.
What if I have a bill that is ripped in half but I have both pieces?
If you have both pieces and they can be matched together, a bank will accept it. Bring both pieces to your bank and explain the situation. The teller will examine them, confirm they form a complete bill, and deposit it. You do not need to tape them together first.
Can I deposit a bill that is missing a corner?
If more than half the bill is present and the denomination is clearly identifiable, yes. A missing corner does not automatically disqualify a bill. A teller can tell you in seconds whether it will be accepted.
How long does it take the Federal Reserve to replace a mutilated bill?
The Federal Reserve typically takes four to eight weeks to examine a damaged bill and mail a replacement. The exact time depends on how damaged the bill is and how many pieces you are submitting. There is no cost to you.
Do I lose money if my bill is too damaged to use?
No. If a bill is genuine U.S. currency and meets the Federal Reserve's standards for replacement, you will receive a new bill of the same denomination at no cost. You do not lose the face value.