What to Do With Your Old Money Bills

Individuals often find old money bills and wonder about their status or potential value. These bills, whether found in an old drawer or inherited, often spark curiosity about their usability or significance beyond face value. Understanding how to handle such currency, from simple exchange to assessing collector appeal, can provide clarity and potentially unlock hidden worth.

Exchanging Old Bills for Face Value

All genuine United States currency, regardless of its age, remains legal tender. While some businesses might hesitate to accept very old or unfamiliar designs, commercial banks generally accept these bills for exchange into newer currency or for deposit into an account. Banks typically withdraw worn or older bills from circulation, sending them to the Federal Reserve for replacement with fresh notes.

For currency that is significantly damaged or mutilated, the Bureau of Engraving and Printing (BEP) offers a free public redemption service. Mutilated currency includes notes damaged by fire, water, chemicals, animals, or deterioration from being buried. To receive full value, more than 50% of an identifiable U.S. note must be present, or if 50% or less remains, evidence must demonstrate that the missing portions were completely destroyed. Submitting such currency involves completing BEP Form 5283 and sending the damaged notes via registered or certified mail to the BEP, or delivering them in person to their Washington, D.C., facility. Handle damaged currency as little as possible, packing it carefully as found, and avoiding any attempts to tape, fold, or alter it.

Old foreign currency’s exchangeability for face value depends on the issuing country’s policies. Many foreign currencies have expiration dates or are demonetized, meaning they are no longer legal tender. Exchanging these typically requires specialized foreign exchange services or banks that deal in that particular currency, as general commercial banks may not accept them.

Identifying Bills with Collector Value

Beyond their face value, some old money bills possess additional worth to collectors, known as numismatic value. A bill’s condition, or grade, is a primary factor influencing this value, with professional grading systems often using a numerical scale from 1 (poor) to 70 (gem uncirculated). Well-preserved notes, free from tears, folds, or excessive wear, and displaying good centering and ink quality, command higher prices.

Rarity also significantly impacts collector value, which is not solely determined by a bill’s age. Some older series were printed in large quantities, making them less rare than certain limited-run newer issues. For instance, many Civil War-era notes are less valuable than some early 20th-century notes due to high production numbers. Scarcity arises from low print runs, limited circulation, or a small number of surviving examples.

Specific features like fancy serial numbers can also elevate a bill’s worth. These include:
Low serial numbers (e.g., 00000001)
Solid numbers (e.g., 77777777)
Ladder numbers (e.g., 12345678 or 87654321)
Radar notes (palindromic, reading the same forwards and backward)
Repeater notes (patterns like 12312312)
Star notes, which are replacement notes indicated by a star in their serial number, can also be more desirable to collectors.

Printing errors represent another category of collectible bills. These can range from misaligned prints, where the design is off-center, to inverted prints, where one side is upside down, or blank backs missing a print layer. Other errors include:
Obstructed prints
Mismatched serial numbers
Gutter folds, where a crease in the paper during printing results in a blank uninked strip
Historical significance, such as notes issued during pivotal national events, can also contribute to their desirability. For initial research, online databases like the PMG World Price Guide or numismatic guides can provide estimated values, but a professional numismatist or appraiser offers the most definitive valuation.

Selling Valuable Bills

Once an old bill is identified as potentially having collector value, obtaining a professional appraisal and authentication is a next step. Reputable third-party grading services, such as Paper Money Guaranty (PMG) or Professional Coin Grading Service (PCGS), examine the note for authenticity and assign a consensus grade. This independent certification provides buyers with confidence in the bill’s condition and legitimacy, directly influencing its market value.

Several avenues exist for selling valuable paper money, each with its own advantages. Local coin and currency dealers offer a direct sales option, often providing immediate payment. These dealers can be a convenient choice, especially for smaller collections, and may offer competitive rates to foster long-term relationships with local sellers.

For higher-value or rarer items, numismatic auction houses are a prominent option. Companies like Heritage Auctions and Stack’s Bowers Galleries conduct both online and in-person auctions, reaching a broad network of collectors worldwide. Consigning a bill to an auction house involves experts evaluating the item and marketing it to potential buyers. While auctions can achieve higher prices due to competitive bidding, they may involve commission fees and a longer sales process.

Online marketplaces also serve as a venue for selling, ranging from specialized collectible platforms to general sites like eBay. While eBay provides access to many potential buyers, sellers should be aware of platform fees and high competition. Regardless of the chosen method, preparing the bill for sale involves taking clear, high-quality photographs and writing accurate, detailed descriptions that highlight its key features and any certified grade.

Preserving Old Bills

Proper preservation maintains the condition and value of old money bills, whether kept for sentimental reasons or as collectible assets. Handling bills correctly is the first line of defense against damage. Always use clean, dry hands, or preferably, wear cotton gloves to prevent oils, dirt, and moisture from transferring to the paper. Avoid touching printed surfaces directly, and never crease, fold, or attempt to flatten a bill by force, as this can cause irreversible damage.

Selecting appropriate storage materials is important for long-term preservation. Bills should be stored in archival-safe holders made from inert materials, such as Mylar sleeves or acid-free paper envelopes. These materials protect the notes from environmental contaminants and physical wear. Harmful materials to avoid include:
PVC plastic holders, which can leach chemicals and degrade the currency over time
Rubber bands
Paper clips
Adhesive tape, all of which can stain, crease, or tear the delicate paper

Environmental control plays a role in preventing deterioration. Ideal conditions are a temperature below 70 degrees Fahrenheit (22 degrees Celsius) and a relative humidity between 30% and 50%. Fluctuations in temperature and humidity can cause the paper to expand and contract, leading to cracking or warping. Protect bills from direct sunlight and other sources of ultraviolet (UV) light, which can cause ink fading and discoloration. Storing them in dark, opaque containers or display cases with UV protection helps mitigate this risk. Protection from dust, pests, and other contaminants is also important for maintaining their pristine condition.