Can You Take Ripped Money to the Bank?

Damaged paper currency, whether torn, stained, or worn, often raises questions about its value. Fortunately, damaged United States currency can often be exchanged for new, usable notes, preventing financial loss. The process for exchange depends largely on the extent and nature of the damage.

What Banks Accept

Banks generally accept U.S. currency that exhibits minor damage, classifying it as “unfit” rather than “mutilated.” This includes bills that are torn, soiled, crumpled, or limp from everyday wear and tear. A primary guideline for banks is the “more than half” rule, which dictates that over 50% of the original bill must be present and identifiable for exchange. This rule helps prevent fraudulent activity, such as someone trying to redeem both halves of a single bill for full value.

For banks to accept damaged currency, it is also important that visible security features, such as watermarks and security threads, and at least one full serial number are present. While banks are equipped to handle currency with minor damage, they typically cannot accept bills that are counterfeit, intentionally altered, or severely deteriorated. Such severely damaged currency, where the value is questionable or less than half of the note remains, falls under a different category requiring specialized attention.

Exchanging Damaged Currency at a Bank

Exchanging damaged currency at a bank is a straightforward process for bills that meet the acceptance criteria. Begin by gathering the damaged notes you wish to exchange. While many banks will assist, visiting a branch where you hold an account can sometimes streamline the process.

Upon arrival, present the damaged currency to a bank teller. For larger amounts, you may be asked to provide identification to complete the transaction. The teller will then inspect the currency, verifying its authenticity and ensuring it meets the bank’s criteria for exchange, such as the “more than half” rule and visible security features. If the currency is deemed acceptable, the bank will typically exchange it for new bills or deposit the value into your account.

When Banks Cannot Help

When currency is too severely damaged for a bank to exchange, it is classified as “mutilated currency.” This category includes bills that are badly burnt, shredded, disintegrated, contaminated, or have less than 50% of the original note remaining. For these instances, the Bureau of Engraving and Printing (BEP), a part of the U.S. Department of the Treasury, offers a service to examine and potentially redeem the currency.

To submit a claim to the BEP’s Mutilated Currency Division, carefully package the damaged currency, disturbing it as little as possible. Include a letter detailing the estimated value of the currency, how it became damaged, and your contact information. Also include your bank account and routing number for direct deposit of any approved reimbursement, especially for claims of $500 or more. Mail the package to the Bureau of Engraving and Printing, Mutilated Currency Division, P.O. Box 37048, Washington, DC 20013 (for USPS) or 14th and C Streets, SW, Washington, DC 20228 (for private carriers). The BEP processes thousands of claims annually, but due to the complex nature of examinations, processing times can range from six months to over three years, depending on the case’s complexity.